Marketshare and Pricing – Ouch

Marketshare is a laudable goal for a company. Just don’t use pricing to achieve it. Trina Solar’s announcement is one demonstration.  (Click on the headline to read the entire article.)

According to this article, prices of solar panels have dropped 21% in the past year due to too much supply and manufacturing capacity. Each company tried to win every opportunity to fill their capacity. Unfortunately for the industry, they fought it out with lower prices, in dollars per watt. They tried to win share with price. As a result, prices plummeted. So did industry profits.

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