Abstract
Photovoltaics (PV), a technology generating electrical power by converting solar radiation into direct current electricity, has been taken as one of the key strategic renewable energy sources. Backed by governmental incentive policies, global PV markets, especially in Europe, it had been expanding rapidly. Manufacturers in the different parts of the industrial value chain around the world benefited from the explosive demand, and the leadership had shifted from the US to Japan, Europe and Asia. China took over the top position through ten-year endeavour in technological improvements. Chinese enterprises were dominating the global market with more than 60% of shares, especially in cell and module productions, as a result of an aggressive pricing strategy versus the branding strategy adopted by some other oversea PV giants, like SolarWorld. Some American and European PV enterprises led by SolarWorld filed antidumping (AD) and countervailing (CV) petitions with the US government against their Chinese counterparts. And the tariff duties came after the investigations had brought a huge amount of loss to Chinese companies and even put them on the edge of bankruptcy. What could Chinese PV firms do to prevent further deterioration? How could they keep sustainable in global markets? Is it necessary for them to change strategies in international competition to cope with upcoming shocks from the European government and competitors? The case reviews the development situation of the PV industry, especially that in China and Germany, and analyses the competitive strategies taken by two PV giants in the two countries in detail. The case is applicable for the course of international strategy with students in MBA or EMBA level.