Research On The Strategy Evolution During The Growing History Of JA Company

With the rapid development of the global economy and the increasing demand for energy, energy supply security has gradually developed into a strategic topic in many countries. As a new kind of energy, solar energy becomes the first priority because of its lower pollution, higher ecomomic returns and othet advantages.Many contries such as Germany, Japan, Greece, Italy, Spain, United States and China has introduced a number of policies to encourage and support the development of solar industry, which leads that participation of investment banking to invest funds and corporate to produce and develop solar energy.In 2003, Germany enacted the "Renewable Energy Law",since then,the rapid development of the global solar photovoltaic and which egin to use in commercial applications.The first pilot solar companies were emerged in Germany the examples are Solarworld AG, Schott solar and then, a large numer of solar companies come out in china :Suntech(NYSE: STP) as the representative and subsequently LDK solar Hi-Tech Co., Ltd.(NASDAQ: LDK), Canadian solar(NASDQ: CSI), Nanjing Sunergy(NASDAQ: CEEG), Baoding Yingli(NSY: YGE), Trina Solar Company(NASDAQ: TSL), JA solar(NASDAQ: JASO), and some of them have successes issued theiri IPO in the United States. Since 2007, China has become the world’s most important manufacturing base for solar products and the market share of Chinese solar products have take up more than 50% of the world’s solar products.As a later comer in the solar photovoltaic industry, JA company was established in 2005, began from 2006,the solar photovoltaic industry has experienced three rings of up and down, after nine years of sedimentation and development, JA solar company gradually grown as one of the most important industry leader. Since 2010, during the coming three consecutive years performed as one of the top three global solar companies.This paper will take JA company as an example and try to find the development stragy baased on the basis for the industrial cycle theory, exploring different companies in various stages of development JA development process based on market and policy changes adopted strategic analysis of the company to the healthy development of JA and gradually grow into the deep-seated causes of the industry leaders.First: In the first development phase of the company, JA solar seized the opportunity for the rapid growth of demand for solar energy, JA took the right time to be involved in the solar industry, while JA took the advantages of its stable supply for raw materials, foreign advanced equipment, mature technology leading to specialized strategic positioning in the production of monocrystalline silicon solar cells, the latter encountered a shortage of raw materials, demand’s diversification and JA made strategic adjustments.Second: In the second development phase of the company, JA solar have got a lot of advanced technology, management experience and volume advantage to take low-cost strategy, the rapid expansion of production scale helped JA to expand its market share, but there is always change in the matket as well as the demand from from the customer side,in according to the changing of the external enviorment JA attempted and carried out new development strategy: vertical integration strategy.Third: In the third development phase of the company,JA solar focuses on the vertical- integration strategy,and began to expand the upstream product:crystalline silicon wafers and try to be involed in the downstream industry:solar modules and solar power plant’s construction business, but the implementment the verticalintegration strategy is not completely,JA solar facing difficulties for operation, after readjustment of its strategic, JA solar try to implement the vertical- integration strategy thoroughly, re-organized its management structure in order to achieve a successful transition for developing strategy.Finally: JA solar’s developing strategy still faceing complex policy chanings of the governments and difficult market environment, JA Company needs to re-consider of its resources and capabilities in hands, and analyzes the opportunities and threats from the outside enviorment to reconsider its developing strategy, in order to adapt to market changes and maintain JA solar’s lasting competitiveness.