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First Solar: A Case Study

In the early 2010s, First Solar, a leading photovoltaic (PV) solar manufacturer, faced a series of challenges: expanding production by subsidized Chinese PV manufacturers; declining purchase subsidies in important European markets; and, declining prices for silicon, the key input raw material for its competitors’ panels. These challenges threatened First Solar’s competitive advantage and overall profitability, and it needed to decide how to respond.

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