ZenithSolar is a leading German provider of innovative solar technologies with an annual turnover of around €580 million (2024). The company produces traditional photovoltaic modules, intelligent battery storage solutions and supplementary services such as maintenance and monitoring. Sales are currently divided into three business areas: Photovoltaic modules (65 %), battery storage solutions (25 %) and services (10 %). ZenithSolar operates production sites in Germany and the Czech Republic and invests around 6 % of its revenue in research and development. The current EBIT margin is 4.5 % - the Management Board is aiming to increase this to over 8 % in the medium term.
After a decade of dynamic growth, ZenithSolar faces considerable challenges in 2025:
Price pressure from Asian competitors is steadily increasing.
Margins in the core business of photovoltaic modules are falling continuously.
New technologies such as perovskite solar cells and integrated storage solutions are permanently changing the market structure.
At the same time, customer demand for complete systems (PV + storage + control) is growing significantly.
The company management asks you to prepare a comprehensive strategic analysis based on this initial situation:
The aim is to develop options for a sustainable repositioning and to strengthen ZenithSolar's operational and financial resilience in an increasingly competitive environment.
Operational risks
Cost disadvantages compared to Asian competitors
Dependence on raw material prices (e.g. silicon)
Technological backlog in innovative solar technologies
Strategic risks
Loss of differentiation in the volume business
Underfunding of R&D initiatives
Market entry of new competitors in the systems business (e.g. start-ups, energy suppliers)
Current EBIT
580 million × 4.5 % = € 26.1 million
Target EBIT
580 million × 8 % = € 46.4 million
Required EBIT growth
46.4 million € - 26.1 million € = 20.3 million €
Possible approaches
Focus on high-margin system solutions (PV + storage + smart home integration)
Development of an own digital service platform for customer loyalty (monitoring, maintenance, efficiency optimization)
Relocation of parts of production to cost-optimized locations without loss of quality
Increase the proportion of in-house R&D innovations (e.g. entry into perovskite technology)
Prioritization criteria
Feasibility (time, costs, risks)
Differentiation potential compared to competitors
Margin effect
Recommended prioritization
Expansion of high-margin system solutions (can be implemented quickly, high contribution margin)
Development of a digital service platform (medium-term differentiating feature)
Focused optimization of production costs (set up in parallel, but more complex)
Alliances with municipal utilities or energy cooperatives
R&D partnerships with universities and research institutes
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