Abstract

The case ‘LONGi Solar Hits a Roadblock in the US – Can it Overcome the Challenges? is about LONGi Green Energy Technology Co., Ltd. (LONGi), a Chinese solar panel manufacturing company and its expansion plans in the US. Li Zhenguo (Zhenguo) the President of LONGi planned to expand the reach of the company and establish a foothold in the US market. LONGi had expanded to other countries through partnerships and new product launches, but in the US the company faced difficulties in establishing its manufacturing facility due to uncertainties in the impact of the Inflation Reduction Act 2022. The company also faced import restrictions and the risk of sanctions based on allegations of using forced labor in its manufacturing facilities in China. The case discusses the growth of LONGi and its clean energy solutions. The company’s global expansion in Germany, Canada, Mexico, Mongolia, Austria, and India are put forth in the case. LONGi also faced stiff competition in the US market from the solar companies based in the US and also from solar companies which were China based. The challenges faced by the company in the US market and globally are dealt with in the case. The case ends with the future plans for the company. Can Zhenguo steer LONGi in its pursuit of the US market? Can the company overcome the difficulties posed by IRA and other trade restrictions in the US?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Analyze the entry strategies in International Markets
• Examine the barriers to International Trade
• Understand how organizations utilize the Ansoff Matrix to formulate market entry strategies

Keywords

International trade; Entry strategies; Ansoff matrix; Entry barriers; International markets