http://forio.com/simulation/mit-sloan-solar/downloads/SunPower-Henderson.pdf

• What are the shapes of the demand and supply curves SunPower is facing?Is the demand elastic?How do you compare marginal cost and average cost of producing the modules?

• Is SunPower company profitable?Would inspecting the income statement provide a reasonable answer?

• Discuss the cost and product curves of the company.

• In Exhibit 8 the drivers of cost savings are listed.Explain three of these drivers and their impact on the cost the firm is facing.

• Is the SunPower company a price setter or is it a price taker?What is the pricing strategy you would recommend for the firm?

• Discuss the impact of the macroeconomic environment on the business model and profitability of SunPower.

• Discuss the last paragraph of the case study text: "The key was choosing and formulating the right strategy. Should, for example, SunPower's strategy focus on the pricing of modules? Or should it focus more on investing in process improvements? Or should the strategy be some combination of the two? If so, what was the right formula based on the multitude of variables that solar cell producers like SunPower faced?"