Does Strategy Create Value? Isofoton and the Grid-Parity Challenge
Isofotón, a company based in Málaga, Spain established in 1981, specializes in the production and development of solar photovoltaic energy projects. Initially, the company had few competitors and the sector saw much growth. However, increasing competition, subsidized rates and Spain’s economic crisis all affected Isofotón, and in June 2010 the Affirma group acquired 100% of the company. Now it was up to Angel Luis Serrano, the new CEO, to pursue the company’s new vision of coupling a global market strategy with significant improvement in costs and efficiency. In this case, the student will investigate how, in a global sector with so much surplus capacity and growing price competition, strategy within a company can create value.