Borders and Solyndra Bankrupsy Analysis

The reason why Solyndra went bankrupt was because they couldn't continue to compete with other solar manufacturers because their manufacturing cost was too high to sustain any type of profit. They had an innovative tube shaped design that they used and it was competitive until solar grade silicon prices plummeted in late 2008 and Chinese manufacturer's increased solar panel production. They could not compete with opposing competitors because competitors cost was below what it cost them to manufacture their tube solar panel. They also had trouble in a competitive standpoint when it cost more to install a Solyndra tube solar panel comparatively to a traditional solar panel.

One of the main reasons that Borders went bankrupt was that it could not compete with the internet sales of books. Borders outsourced its internet sales to Amazon.com when they had the resources at the time to be player in this market. Borders also were also behind in Ebook technology when it came out and were not competitive in Ebook sales. They did not pick up the market share that they lost from the change that happened from a sales shift in internet book sales and ebooks. They also made bad real estate investment in their store front and distribution centers. They overstocked in book and music CD's sales. They had too much inventory and the cost was too high to continue to operate in that fashion with the change in times.

Solyndra and Borders both had trouble keeping up with the changing times.