Solyndra Solar Company: Reasons Why Solyndra Failed Essay.

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Details:1) brief history 2) how did Solyndra make money 3) reasons why did it fail 4) What should Solyndra have done to avoid the bankruptcy?


Here’s a snippet of the essay.


Founded in 2004, Solyndra Solar Company was a US company based Silicon Valley. The major strategy of making money was manufacturing solar panels without using polysilicon; this would make the panels cheaper to manufacture as well as install. The other strategy for making income ahead of its competitors was the use of rounded panels; this would maximize installation space thus producing more electrical power per every rooftop. Given the then skyrocketing price of silicon, these solar panels would be cheaper thus giving the company at a competitive edge in the market. However, these strategies were not executed as planned; a brief history of the company proves this.

Brief History


In February 2008, polysilicon prices fell sharply, while Solyndra’s claim for cheap installation proved futile. With subsidized policies, Chinese firms flooded the American market with cheap solar products, further worsening solar panel market. Natural gas prices also went down, making investment in comparatively more expensive alternative energy unattractive. These conditions badly shacked Solyndra’s business operation.  In 2005, Solyndra applied for a program under the government’s Energy Policy Act of 2005. In this program, the company would be awarded a recovery loan of $ 535 million being the first company to receive the stimulus when it was announced in 2009. By 2010, the firm’s management had already started throwing speculations at the spending decisions, and the credibility of investing in the unused state-of-the-art equipment. In March 2010, PriceWaterhouseCoopers, an independent audit firm, started doubting the ability of Solyndra to thrive in business. This was followed by massive warning to the Obama administration and venture capitalists with regards to the worth of Solyndra as a bet for investment.

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