SolarFilms Growth Strategy SolarFilms is a division of a US-based company that manufactures performance materials and chemicals for various applications. SolarFilms' products are thin films coated with various materials that deliver new conductive and protective properties the company can use to target the fast-growing solar energy market. Thin- Film Photovoltaic (TFPV) is an emerging alternative to traditional Crystalline Silicon (Cr-Si) due to lower cost and flexibility of the product, which opens up new application areas. Thin-film technologies use solar absorber materials deposited on glass or plastic substrates in thin layers to convert solar energy to electricity. Although thin films are rapidly gaining share from Cr-Si, Cr-Si is expected to retain more than 50% of the market for the foreseeable future due to higher efficiency. Recent research showed that Cr-Si was nearly twice as efficient as TFPV, depending on the technology. SolarFilms needs a growth strategy if it is to survive and continue to prosper. In the paragraphs below, we first provide information on the solar industry and current and future technologies. Following that, we outline the decisions needed as part of the growth strategy. The Solar Industry The solar photovoltaic (PV) market has experienced huge growth in the last few years due to strong governmental support and rapid developments in technology. Traditional Cr-Si dominates the PV market, with a share over about 80%. Cr-Si is a mature technology with conversion efficiencies of about 17%. High silicon prices recently spurred interest in TFPV. TFPV benefits from both lower manufacturing costs and the ability to be applied to flexible materials. Not all thin-film PV is applied on flexible substrates-over 60% of the existing TFPV module production is on glass. Although it is more expensive, Cr-Si has significant efficiency and durability benefits over TFPV. Cr-Si has a larger installed base, but thin-film PV is rapidly gaining share. Improved module lifetime, solar conversion efficiency, and lower manufacturing costs will be key enablers for flexible TFPV applications. Thin-Film Technology SolarFilms produces the Protective Barriers, Transparent Conductive Films (TCFs), and PV Absorber layers for thin-film panels and sells them in rolls to downstream players for assembly of solar panels. Typical panel structure includes the following layers: barrier layer front conta PV absorbeThe Protective Barrier layer acts as a protective shield against weather and serves as an outer layer. Transparent Conductive Films (TCFs) are optically transparent and electrically conductive in thin layers. TCFs act as a window for light to pass through to the active material beneath. Thin-film solar cells are usually categorized by PV material, and the following PV Absorber technologies exist in the market: Amorphous Silicon (a-Si) Cadmium Telluride (CdTe) Copper Indium Gallium Selenide (CIGS) Organic PV (OPV) a-Si is the leading technology in thin films, capturing about 50-60% of total thin film sales. While a-Si suffers from lower performance compared to Cr-Si, it is much more flexible in its applications and is less costly. For example, a-Si layers can be made thinner than Cr-Si, which produces savings on silicon material cost. Another advantage is that a-Si can be deposited at very low temperatures, e.g., as low as 75 degrees Celsius. This allows for deposition on not only glass, but on plastic as well, making it a candidate for a roll-to-roll processing technique. CdTe shows promise for being the lowest-manufacturing-cost technology and is also considered the ecologically leading technology. CIGS is the newest of the inorganic films and is therefore less trusted than CdTe or a-Si. However, its superior conversion efficiencies give it an advantage. OPV could produce a revolution in applications which were formerly unassociated with solar energy such as solar textiles, personal electronics, phone chargers, etc., but it is not well-suited to more traditional applications. Thin-Film Applications Thin-film solar panels are commercially available for the following applications: Portable devices such as consumer electronics and smartphone chargers are a growing area for thin films due to their thinness and flexibility. For example, a small panel can be mounted on a backpack or daypack and keep a smartphone charged during the day. Building integrated photovoltaics (BIPV) uses semi-transparent thin-film cells that can be applied as window glazing. These cells act as window tinting while also generating electricity for the building. Ground mounted thin-film PV applied to glass is used to generate electricity in solar farms and serves as a substitute for traditional Cr-Si. The main advantage of a-Si in large-scale production is not efficiency, but cost. a-Si cells use approximately 1% of the silicon needed for typical Cr-Si cells, and the cost of the silicon is by far the largest factor in cell cost. Ground mounted remains the dominant application (80% of the market) but BIPV (15% of the market) is expected to grow more quickly for the next few years. Portable devices and consumer electronics will grow the fastest with an expected CAGR of about 50% for the next 10 years. However, the size of the market will remain small-estimated to reach just 10% of the market in six years. a-Si is primarily used in Ground mounted applications while OPV and CIGS allow applications that are flexible and portable. Here is a summary of different technologies and their application areas and efficiency:Application Areas Efciency Ground BIPV & Portable Mounted Rooftop Devices Traditional Solar CrSi 17% . O 0 Technology o 0