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Running head: EXTERNAL/INTERNAL ANALYSIS & Page |1

Global Strategy and Strategic Management

MBA

External Analysis

Article 1: Future Scope of Solar Energy in India

Ankita Moore

Dr. C. West

St. George’s University

April 28th, 2019


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Article 1: External environment related to PESTEL, industry/competitive five forces, or

competitive analysis

Article Title: Future Scope of Solar Energy in India

Bharat Raj Singh*1 and Onkar Singh2

What is the external force or element addressed in the article? (PESTLE analysis)

Some of the external force or element addressed in the article “Future Scope of Solar

Energy in India” are economic, social, technological and environmental factors. As India aim to

better the country solar power capacity of 100 GW by 2022; it is expected to be 235 GW by 2021-

22. This means that it will account for three-fourths of the planned renewable energy capacity of

175 GW by 2022. Secondly, with the growing appetite for electricity in India and its plans to

become one of the largest solar power markets in the world received a massive boost to its latest

solar power potential. India is said, to have a tremendous scope of generating solar energy due to

its geographical location which put them in a good position to benefit from generating solar energy.

Primarily, the National institute of Solar Energy in India has determined the country’s solar power

potential at about 750 GW. Additionally, the solar power potential has been estimated to using

the wasteland availability data in every state and jurisdiction of India. Likewise, by implementing

this renewable technology, it means that the one-fourth of the nation households will have quality

supply of electricity. Finally, solar energy systems are environmentally friendly and offers

extreme benefits in comparison to the conventional energy sources that can pollute the air., e.g.,

release of CO2 and other harmful gases. Therefore, implementing solar energy would make it

suitable for India since they are one of the worlds most polluted countries.

How does it affect the industry? (PORTERS FIVE FORCE analysis)


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India is said to need as much as $200 billion to meet its target of installing 100,000MW of

solar power capacity and around 60,000MW of wind power capacity by 2022. Based on this new

initiative the porters five force analysis would have a major impact on this industry. This being

consumer buying power, competitive rivalry and threat to entry to the solar industry. Firstly, the

bargaining power of buyers/consumers would be great since running solar energy is the best

alternate means of power generation in India which would cause consumers to switch easily to a

cheaper source of energy. This means that the solar energy that would be available in a year would

exceed the possible energy output of all fossil fuel energy reserves in India. Secondly, as this is a

relatively new venture, the competitive rivalry would be low since many businesses are still

establishing and laying the foundation in this industry. As a result, the industry has not reached

the level for highly competitive rivalry since the countries average solar power plants would be

generating a capacity over India’s 0.25 kWh per m2 of used land space. In addition, the low rivalry

would in turn eliminate any threat to entry into the solar industry subsequent to the high cost of

generating renewable energy, e.g., solar panel.

How may it impact India Renewable Energy? Opportunity or threat? (SWOT analysis)

There is much scope for solar energy being promoted in India, since the use of such natural

resources can reduce the use of firewood and dung cakes by rural household. Naturally, it provides

a massive opportunity to tap into this potential since it is an inexhaustible source of energy and

can act as the best replacement to other non-renewable energies. As the cost of oil is soaring higher

it has forced India’s government to depend on solar resource that will allow the country to generate

electricity, naturally. In addition, there is a lot of potential to expand solar energy initiatives in

India as the industry has been experiencing a boom and seems to be continuing to do so for a long

period.
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References

Singh, Prof Bharat Raj & Singh, Onkar. (2016). Future Scope of Solar Energy in India.

SAMRIDDHI: A Journal of Physical Sciences, Engineering and Technology. 8.

10.18090/samriddhi. v8i1.11408. Retrieved from

https://www.researchgate.net/publication/308302825_Future_Scope_of_Solar_Energy_in

_India
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