LONGi Solar Hits a Roadblock in the US-Can it overcome the Challenges?

Case Code: BSTR674 Case Length: 10 Pages Period: 2000-2023 Pub Date: 2024 Teaching Note: Available

Price: Rs.400 Organization : LONGi Green Energy Technology Co., Ltd. Industry : Energy Countries : United States Themes: International Trade, Trade Agreements, International Business,Global Strategy

Abstract Case Intro 1 Case Intro 2 Excerpts

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?

Issues

The case is structured to achieve the following teaching 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

Contents

Introduction
A Note on Longi Solar
Longi Solar’s Clean Energy Solutions
longi’s global expansion
China-Based Competitors for Longi in the US
US-Based Competitors of Longi in the US
Challenges in the US Market
Other Challenges
Road Ahead
Exhibits

Keywords

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

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