Channel and Pricing Strategies

Essay by jimmy_the_crickettUniversity, Master'sA, November 2010

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Channel and Pricing Strategies

First Solar wants to grow and expand in the German market. The marketing team has to make sure that the needs of the customer will be met, and that they customers will be satisfied. Going solar will benefit the individual consumer. By taking into consideration the necessity of the product, and the status of the product for both internal and external competition, solar energy is offered in the USA which is a domestic market. This paper will be discussing sustainability of the German and U.S. markets, channel strategies for both domestic and international markets, environmental factors and pricing strategies.

Choosing the Marketing Channel

Q-Cells, a German company that surpassed Sharp last year to become the world's largest maker of photovoltaic solar cells, is the main tenant among a flowering cluster of solar start-ups here in a German area known as Solar Valley.

Thanks to an aggressive German push into renewable energies, Germany has become an unlikely leader in the race to harness the sun's energy. Despite the cloudy climate Germany has by far the largest market for photovoltaic systems, which convert sunlight into electricity, with roughly half of the world's total installations. And it is the third-largest producer of solar cells and modules, after China and Japan. Now, though, with so many solar panels on so many rooftops, critics say Germany has too much of a good thing, even in a time of record oil prices.

The debate over solar subsidies is a test of how an environmentally minded country can move from nurturing a promising alternative energy sector to creating a mass-market industry that can compete with conventional energy sources on its own footing.