Thursday, March 7, 2013

The Fall of China's Solar Power King

Link: http://www.businessweek.com/articles/2013-03-06/the-fall-of-chinas-solar-power-king#r=nav-f-story

This article tells the tale of Zhengrong Shi, the ex-founder and chairman of the China-based Suntech Power. Shi's career until now was that of a success story. He grew up in China, received an education abroad, came back home and used his knowledge to create a company and rise to the top. However, Suntech Power has started falling off. In 2010 the company expanded to the US. Without same subsidies from the government though, the limited demand (which was less than expected) caused lower than expected sales figures. Due to these shortcomings, the company has since demoted Shi twice.

As this article shows, even if you are on top, a company needs to stay on the lookout to remain relevant and prosperous. Although Suntech Power probably did get predictions on sales for their expansion, they did not seem to take into fully account for their support from the government so that they would make a profit.

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