In 2019, the global power/traction battery industry was currently in a state of disorderly development and market uncertainty. CATL has identified development opportunities in the battery market and aims to make breakthroughs in this field. However, lacking peer experience to reference, CATL has struggled to find a breakthrough. There has been a significant disconnect between production and sales, and decisions from management have been difficult to implement, which have hindered the company from achieving sustained growth. This challenge is common among all power battery enterprises in that environment at that time, where none could find a breakthrough.

Our team used the eight-dimensional integrated strategic management model to help clients re-analyze and plan strategies from aspects such as market insight, strategic decoding, organizational structure, and corporate culture:

1. As an emerging industry, the new energy vehicle sector requires market cultivation, but there is no ready-made methodology on how to achieve this. In this scenario, both enterprises and governments lack precedents. Our team, in collaboration with CATL, tailored to the characteristics of the electric vehicle industry, has developed a predictive model for market space and scenario planning to address industry uncertainties, thereby ensuring the effectiveness of investments. Simultaneously, we conducted an analysis of the industrial chain, identifying the cost curve model within which power batteries can operate in a viable commercial loop. Consequently, we decided to continue vigorously developing power battery products and have applied for related supporting industrial policies from the government.

2. We decoded strategies for enterprises, pinpointing breakthroughs in strategy execution. In the original development model of the enterprise, there was a disconnect between the planning of technology, products, and manufacturing, often requiring upstream and downstream departments to exceed necessary levels, urgently necessitating the establishment of an interdepartmental responsibility system. Each department has clear boundaries of responsibility, understanding precisely what it needs to be accountable for. Therefore, we proposed starting with organizational restructuring to reform the enterprise.

3. CATL employed a functional organizational structure, which our team transformed into a matrix structure. This transition shifted accountability from reporting solely to superiors to encompassing responsibilities across both upstream and downstream links. Concurrently, we redefined assessment metrics to align with the new organizational structure. Previously, although there were assessment goals, they were department-specific without shared objectives. Post realignment of responsibilities and division of labor, the enterprise evaluated performance using metrics such as sales, market share, net profit, and input-output ratio, fostering comprehensive departmental thinking.

4. Originally rooted in Chinese traditional culture, CATL's corporate culture was not globally oriented. We recommended adopting a global culture to capture international markets.

In the end, CATL overcame its challenges and achieved sustained growth. Over a period of 5 years, it rose to become the world's top-ranked company in the power battery market, capturing a market share of 36.8%.

Enterprises across the entire solar photovoltaic industry in China, whether they are industry leaders or market followers, face two major pain points:

The first major pain point is the decision between investing across the entire solar photovoltaic industry chain or opting for vertical specialization. In the photovoltaic market, from raw materials to final power stations, the industry chain is vertically segmented, leading to uneven profit distribution. Investing across the entire industry chain involves comprehensive investment from raw materials, components, to power stations. Vertical specialization, on the other hand, involves selectively investing in one or several stages of the chain. Because each approach has its own advantages and disadvantages, choosing between them is extremely challenging, and it often leads to uncertainty regarding strategic direction.

The second major pain point is the choice between centralized or distributed generation in the solar photovoltaic industry. Centralized generation involves using power stations located in areas like seas, offering flexibility in site selection, stable photovoltaic output, and shorter construction cycles. However, it requires relying on long-distance transmission lines to deliver electricity to the grid, which incurs significant power losses and involves higher technical complexity. Distributed generation, on the other hand, has the advantage of producing relatively smaller output, causing minimal environmental impact, and allowing for simultaneous generation and consumption. It can alleviate local electricity shortages. However, its drawback is that most users are rural and lack financial resources. These contrasting characteristics make the choice between centralized and distributed generation a critical decision for enterprises in the solar photovoltaic industry.

Different strategic choices can directly determine the ultimate success or failure.

Based on our eight-dimensional integrated strategic management model, we have addressed these two industry pain points effectively:

Regarding the first major pain point, leveraging Tianhe Solar's strengths, we have determined that the optimal approach is a dual model of self-production in certain segments and collaborative production in others. Tianhe Solar independently develops in high-profit segments while pursuing joint ventures or collaborations in less profitable areas. This dual model maximizes entry into high-profit segments of the industry chain while maintaining more influence across upstream and downstream activities.

Addressing the second major pain point, we recommend that Tianhe Solar increases its investment focus on distributed generation alongside its existing centralized photovoltaic power generation market. Distributed generation involves end-consumers purchasing photovoltaic generation equipment directly. Previously, products were sold to distributors without further consideration for subsequent services, leaving many potential users unable to afford photovoltaic installations due to insufficient funds. Recognizing Trina Solar's potential to surpass market leaders in this market segment, we have devised a new business model integrating credit structures into marketing activities: banks extend credit to users who then purchase products from Trina Solar. This financing solution allows interested but undercapitalized users to participate in the industry chain, fostering widespread residential involvement in power generation and driving industry transformation.

Through the implementation of our strategy, Tianhe Solar has established an integrated system across multiple sectors and within the industry, leading to a new development paradigm. Moreover, in the field of distributed generation, Tianhe Solar has become the market leader in market share.