Annals of Business Administrative Science
Online ISSN : 1347-4456
Print ISSN : 1347-4464
ISSN-L : 1347-4456
The logic of bankruptcy of top manufacturers in photovoltaic industry
Junichi Tomita
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JOURNAL OPEN ACCESS

2022 Volume 21 Issue 2 Pages 31-46

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Abstract

In solar cell manufacturing from the late 2000s to the early 2010s, the turnover for top manufacturers implied that it was only a matter of years before they went out of business. In general, many tend to believe that top manufacturers went bankrupt because of the bubble and burst caused by policies intended to promote and control the PV industry in various countries; however, considering that solar cells can be sold in any country worldwide and the global market for solar cells continues to expand, the ups and downs of solar cell manufacturers cannot be explained by the bubbles and bursts of individual countries alone. In fact, (i) while the turn-key solutions of Western manufacturing companies facilitated market entry, in China, people witnessed successful companies and imitated them to start their own businesses. Many of these companies launched and entered the market one after another in a short time span, thereby causing companies in other countries to go bankrupt due to low prices. However, (ii) even these Chinese firms have been experiencing a decline in capacity utilization amid a chronic oversupply caused by vigorous entrepreneurship, and top manufacturers have collapsed due to minor setbacks that later proved catastrophic.

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© 2022 Junichi Tomita. This is an Open Access article distributed under the terms of the Creative Commons Attribution License CC BY 4.0 (Attribution 4.0 International) license. The CC BY 4.0 license permits unrestricted reuse, distribution, and reproduction in any medium, provided the original work is properly cited.

This article is licensed under a Creative Commons [Attribution 4.0 International] license.
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