Before 2020, there will inevitably be roughly the same competitive strategy among PV companies. after 2020, there will be no more, because the times and the industrial background have changed, and different companies must have different competitive strategies.

Why will PV companies have the same competitive strategy before 2020?

Because of the times and the industrial context.

The photovoltaic industry before 2020 is a subsidized industry, how to obtain, what cost to obtain subsidized resources, it becomes the only means of success for photovoltaic enterprises. Before the national implementation of the "frontrunner program", the competitive strategy of PV enterprises is always to rely on interpersonal resources, try to obtain the lowest cost of PV power generation subsidy resources; after the national implementation of the "frontrunner program", the competitive strategy of PV enterprises is always to rely on the integration of social resources to obtain PV power generation subsidy resources at the lowest possible price. After the implementation of the "Pacesetter Program", the competitive strategy of PV enterprises is to integrate social resources to obtain PV power generation subsidy resources at the lowest possible price.

Why must PV companies have different competitive strategies after 2020?

Because times and the industrial context have changed.

The changing context of the times is manifested in:

The economic times have changed, from the traditional economy to the era of the Internet and digital economy.The top 20 of the Fortune 500 in 2010 were exclusively energy, automobile and retail enterprises; the top 20 of the Fortune 500 in 2019 have Internet new economy enterprises such as Apple, Amazon and Samsung, and the Internet and digital economy have begun to lead the times. In the past year, Apple, Microsoft and Amazon, the representative enterprises of the new economy, have continued to break through the trillion dollars of the world's highest market capitalization in the capital market. on November 26, Alibaba, the representative enterprise of China's new economy, which rejoined the Hong Kong Stock Exchange, exceeded four trillion Hong Kong dollars in market value the next day, becoming the eighth-largest market capitalization enterprise in the world, and on December 20, it had already become the world's seventh-largest market capitalization enterprise.

The background of China's economic development has changed, from high-speed development to medium-speed stable development, from the incremental economy to the stock economy. 2010, China's GDP growth was 10.3% year-on-year, and in the first three quarters of 2019, it was 6.2% year-on-year growth. The incremental economy is a trend opportunity, everyone is easy to make money, you can "borrow money to bet on the country's fortunes"; the stock economy is a structural opportunity, a few enterprises to make money, the majority of enterprises do not make money, borrowing money may accelerate the death. The report of the 19th Party Congress clearly puts forward the need to adjust the high economic growth to high-quality economic growth.

The changing context of the photovoltaic industry is shown in:

Before 2020, PV power generation subsidy will determine the market size. after 2020, PV power generation cost + grid consumption ability will determine the market size;

Before 2020, PV power plant installation is a high growth market. after 2020, PV power plant installation is a negative to low growth market in the short term;

Before 2020, PV products are structurally oversupplied. after 2020, PV products are fully oversupplied;

Before 2020, the photovoltaic technology single polycrystalline route this and that, the progress of technology, iteration speed is too fast. 2020, the photovoltaic technology monocrystalline route is dominated by the enterprise competition slowed down, the progress of technology, iteration speed will also be slowed down;

Before 2020, PV+Storage is still just a development direction. after 2020, PV+Storage is becoming more and more of a reality, and even an important means to open up the competitive gap between companies.

Before 2020, there are few PV application scenarios and a single business model. after 2020, PV application scenarios increase and business models diversify;

Before 2020, photovoltaic enterprises will mainly compete domestically, and after 2020, the international and domestic markets will compete at the same time, and the outstanding enterprises will go more to the international market from products to applications;

Before 2020, the PV domestic market is an incremental market, and the role of capital is dominant. after 2020, the PV domestic market is a stock market in the short term, and the role of the organization begins to emerge;

Before 2020, there is little difference in the level of financing interest rates among PV companies. after 2020, the level of financing interest rates among PV companies is significantly widened, and more companies can't finance;

The result of all the above changes is that the PV industry after 2020 is rapidly maturing. On the one hand, the various market elements that determine the prosperity of the industry and the development of enterprises are rapidly maturing; on the other hand, the mature elements will tilt and accelerate the PV enterprises that have chosen the right competitive strategy, accelerating the competitive distance between enterprises.

As the times and industrial background are changing too fast, PV enterprises inevitably face such confusion:

Although the non-market posting for realizing the value of PV companies before 2020 has been abolished, market standards, pricing mechanisms, trading markets, green certificates and carbon trading and other market-based mechanisms for realizing the value of PV companies after 2020 have not yet been established;

The administrative methods for determining the grid connection standards for PV power generation before 2020 no longer exist, and the rules for grid enterprises to determine the grid connection standards for PV power generation after 2020 have not yet been formed. New PV energy enterprises want to share the pressure on the grid due to unstable power supply, but they do not know what criteria to share and whether they can share;

Before 2020 photovoltaic enterprises old, everyone the same business competitive strategy although outdated, after 2020 photovoltaic enterprises new, everyone different business competitive thinking and strategy has not yet been established.

All this will bring such a cruel result: before 2020 photovoltaic enterprises, as long as they do not make big mistakes can live. 2020 after the photovoltaic enterprises, even if they do not make mistakes but may not be able to live.

In such an era and industrial context, how and whether to develop a correct competitive strategy for PV companies after 2020, "I'm too hard!"

Some thoughts on developing competitive strategies for PV companies beyond 2020:

Competitive strategy is the establishment of a firm's competitive advantage in a particular industry or market.

Dare to abandon the existing thinking and experience. Because the times and industrial background has changed, PV enterprises in the past thinking and experience, may become a barrier to the development of the new period. Drucker said: "the greatest danger in turbulent times is not the turbulence itself, but still doing things with the logic of the past". In the process of transferring cell phones from feature phones to smart phones, because it is with the old thinking and experience to face the new world, once 16 consecutive years of the world's top-selling Nokia out of the game, it regretted: we did not do anything wrong, but we lost;

Dare to break through stereotypical thinking. Huawei is a company with strong principles, and the first article of the Huawei Basic Law had made it clear: "We will never enter the information service industry", but along with the development of the times and the need for vertical integration, Huawei is also in the midst of change. A researcher said, "In Huawei's case, there are terminals, chips, devices, and clouds, as well as To C and To B markets, and in the future, there will be a content market."

Choose different competitive strategies according to different enterprise genes. Influenced by the genes of the founders, the genes of each enterprise are different, there are those that favor technology genes and those that favor capital genes, and enterprises with different genes should choose different competitive strategies. The technical gene, program ape born Ma Huateng, decided that Tencent likes to use technological progress to expand the enterprise territory. Social science genes, marketing experience of Ma Yun, decided that Ali prefers to use philosophical thinking to solve social problems;

Choose different competitive strategies according to different market segments. Along with the ecological development of photovoltaic applications, the application scenarios of photovoltaic power generation are constantly breeding and extending, photovoltaic enterprises can choose a new, less competitive market segments, force out a hole. In the past decade, because the traditional economic market base has been very mature, after Apple, Facebook, Microsoft, Amazon, the United States failed to appear new new economic leaders. Because of the serious immaturity of the traditional economic market foundation, after Baidu, Tencent, Alibaba, China in different segments of the market, and the emergence of a number of new new economic leaders. Meituan tapped into the local life market, Headline pioneered the big data market, and Pinduoduo discovered the sinking market;

Choose a competitive strategy to enter the "top five companies". If there is no other choice, then choose to enter the top five companies in a market segment. Because the photovoltaic market is rapidly expanding, the next ten years, each market segment has enough room for the survival and development of the top five companies. When Ali's former vice president of sales Gan Jiawei, was asked why he was able to accept Wang Xing's invitation to serve as COO of the United States group replied: I just want to "this buddy later can not be ranked in the top ten Internet?" At that time, to participate in the group-buying market competition, there are thousands of enterprises;

Choose the competitive strategy of endogenous efficiency. China's PV processing enterprises from the birth of the day on the most understanding of the "economies of scale", until today still in the tens of billions of dollars in scale expansion. However, in the industry background changes, "economies of scale" is not suitable for all enterprises, choose "endogenous efficiency" is not a bad choice. Home appliance industry is the most typical "scale effect" industry, but the United States in "2010 after not building a square meter of plant in China, did not take an acre of land, did not build a new production line", but did in 2018 compared to 2012, the total revenue increased by 285%. Annual revenue growth of 285%, profit growth of more than 481% of the considerable achievements, relying on the "endogenous efficiency";

Not choosing blindly is also a choice. At the critical moment of deciding the life and death of an enterprise, it is also a choice not to follow blindly or make hasty decisions when you have not figured it out. Entering the new economic era, the Internet, big data, blockchain, wave after wave of mythological technology in the market, bringing wave after wave of mythological business thinking, while accomplishing individual enterprises, also sacrificed a large number of enterprises. Those sacrificed enterprises often die not because of competition with others, but because of their own blind folding.

At present, in the face of all the above changes and the complexity brought about by a number of photovoltaic enterprises, or active or passive, or has been or is choosing different competitive strategies, highlighting the different corporate wisdom.

Called "photovoltaic poverty alleviation first share" in the profit, because the third quarterly report this year, more than 38 million yuan loss and 2020 national poverty alleviation work changes, painfully, determined to shift the strategic focus from photovoltaic poverty alleviation to overseas markets. Not long ago in reply to the capital institutions research, said: "will continue to be based on the main business, focus on expanding photovoltaic overseas business".

In the first two years of continuous huge investment, constantly "XX capacity first" Tongwei, in 2020 is approaching, chose the win-win thinking. In its hosting of the "second China PV Industry Summit Forum", the beginning of the proposed: "wisdom to lead, industrial empowerment, integration and change". In this regard, Liu Hanyuan said: "If it is suitable for others to do, we will try to fulfill others; if it is suitable for ourselves to do, we will try to unite with others to do it together".

Photovoltaic industry's greatest fortune is unprecedented, photovoltaic industry's greatest misfortune is also unprecedented, because of unprecedented, leading the world of Chinese photovoltaic enterprises can only continue to think, constantly creating a new world. When the successful Bezos was asked "what is the biggest regret? , he answered: Amazon was founded when UPS (FedEx) was already big. In China, Jack Ma will not have such regrets, he can raise a "Caijiao" (Caijiao Network Technology Co., Ltd.), so that this year's "Double Eleven" generated 2.8 billion packages within a week to reach the hands of customers. Photovoltaic industry will not have such regrets, in the ecological development of the road, everything is new.

The photovoltaic industry starting in 2020 will be the most brutal period ever and the most hopeful period ever, the best period for the wise and the worst period for the mediocre.