A Study On Overall Cost Leadership Strategy For GCL-POLY

Traditional energy strategy led to growing international energy crisis and environmental pollution problems, has become an inevitable choice for the development of new energy. Due to its incomparable superiority, photovoltaic solar energy has become the focus of attention by many countries and regions. Our abundant solar energy resources and silicon ore reserves can provide good conditions for the development of China’s photovoltaic industry. However, for the development of China’s photovoltaic industry, there are still some problems, presenting in high dependence on foreign raw materials and power generation terminal, small domestic market, the lagging core technology, the imbalance of the industry chain and irrational structure. The industry as a whole presents a disordered state of development. So a study on development strategy at this time, especially for the GCL-POLY implementation of the cost leadership strategy has a very important practical significance for photovoltaic companies in difficulties.This thesis, supported by the theory of Overall cost leadership strategy management, through the analysis of the photovoltaic industry, based on the status of GCL-POLY in close connection with the external environment and internal conditions, demonstrates the need for the GCL-POLY implementation cost leadership strategy the use of Porter’s five forces model. And then through empirical study it concludes that the technical innovation and economies of scale are two effective measures to achieve cost leadership. On this basis, through the rational analysis of the current situation and problems of GCL-POLY cost objective, with emphasis on the too large financing cost and high financial leverage, it indicates huge impact on normal operations and the safety of fund-sand risks at GCL-POLY. Finally, based on the characteristics of photovoltaic enterprises, it also proposes some adjustments in three aspects of capital structure, marketing, market adjustment and diversification strategy, as well as in technological innovation and enterprise management optimization measures to protect the enterprise in established strategic orbit in the smooth operation and achieve the stated objectives of the enterprise.