applied materials strategy analysis presentation
DESCRIPTION
An analysis on short-term and long-term strategies for Applied Materials and the solar industryTRANSCRIPT
SHAYNE ARMSTRONGSETH BREEDLOVE
ALBERT KING
Agenda
AMAT BackgroundCurrent StrategyEnvironmental AnalysisKey Considerations for the FutureScenario AnalysisShort Term StrategiesLong Term Strategies
Applied Materials
BUSINESS APPLICATIONS
CRYSTALLINE SILICON SOLAR MANUFACTURING SYSTEM
LEADING/PATENTED FLAT PANEL DISPLAY MANUFACTURING SYSTEM SUNFAB THIN FILM PRODUCT 5.7m2
SEMI-CONDUCTOR PRODUCTION EQUIPMENT
FINANCIAL HEALTH 10Q-Q1
EES– Energy Environmental Group (thin film and crystalline photovoltaic) <12% of revenue> Only division with an operating loss
AGS– Applied Global Services (logistics support) <24% of revenue>
Silicon (SSG)– Semiconductor Wafer Fab <58% of revenue>
Flat Panel Display manufacturing Equipment <6.4% of revenue>
Market StrategyMarket Strategy Growth StrategyGrowth Strategy
Patents/technological investments
Partnerships/Acquisitions
Government tax breaks (A.R.R.T.A)
Developing cutting edge nanomanufacturing tools
Innovative Technologies (high efficiency/high output thin film)
Technological facilities (Solar Power Research in Xi’an China and Alzenau, Germany)
Current Strategy
P.E.S.T.P.E.S.T. Porter’s FivePorter’s Five
Political Governments are major drivers of
alternative energy—including Solar Feed-in tariff
Economic The World economic crisis is affecting the
solar industry Expensive technology, but tax incentives
offset costs Social
Carbon footprint reduction Environmental consideration for all
purchases Technological
Alternative energy production becoming required
Efficiency and Cost effectiveness Break through in alternative power
transmission
Rivalry Infant & Growing Industry – High Rivalry in
Future Current economy may shake out many new
entrants. Substitutes:
Electricity Doesn’t Have a Substitute Source of Power Does (Coal, Wind, Solar, Oil,
Hydropower, Bio-Fuel Nuclear etc.) Barriers to Entry
No Industry Production Standard/Lack of Compatible Technologies
Buyer & Supplier Power (Two Forces - Moderate) Applied Materials Can Manufacture It’s Own
Supply. Hard to Find Financing for Consumers Lack of Consumer Awareness of Where and
How to Purchase
Environmental Analysis
Considerations for Future Strategy
Trends Climate Change Evolving Solar Technology Developing Countries Leapfrogging Technology
Uncertainties Technological Advancement Oil Prices and Alternative Energy Government Legislation
Stakeholders Government Auto/Construction/Farming Industries Consumers
Three Scenarios
Scenario 1: “Sunny days are here again” New solar power cells have achieved at least 80% efficiency Cost per peak watt hour is below $3.00 65% of homes and businesses by 2025 are powered solely by solar power US exports excess solar energy overseas
Scenario 2: “Running around in circles” The depression of 2007 has lasted longer than expected The consumer loses interest in the benefits of solar Governments are still investing in green tech and innovation but the pace of progress
slowed the movement toward greater efficiency and energy costs
Scenario 3: “It’s as hot as hell in here” The intense resistance of oil companies win the market over The U.S. government stops all funding for alternative energy Innovation is non-existing and the U.S. public is more dependent on foreign oil than
ever.
Short Term Strategies
Provide Financing Solutions in Solar Industry Partner with Banks for transferring of funds Partner with solar panel installers to provide financing
Enter Solar Panel Installations Partner/Purchase Solar Panel Installers to Gain Access
to Consumers
Continue to Purchase Competitors and Patents (already successful strategy)
Continue Building Solar Farms
Long Term Strategies
Improve the Efficiency of Clear Solar Panels—One Technology, Many Applications Auto Industry Recreational Vehicles Home Builders Commercial Builders
Invest in Next Generation Solar Panels Farm Industry Partnerships
Considerations for Future StrategiesImagine Playing fields
Potential
Playing Fields
Judo Strate
gy
Shaping the
Playing Field
Market Entry
Auto Industry
Outcomes
Construction
Outcomes
Farm Industry
Outcomes
Synthetic solar cells can be grown in tobacco plants and E. coli bacteria.The method offers a cheap, environmentally friendly way to make electricity
Questions?
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