Crossroads Solar is a solar panel manufacturer that was founded on the belief that otherwise good people occasionally make significant mistakes in life that land them behind bars. Upon their release from prison, formerly incarcerated individuals continue to be punished for their actions as they struggle to find housing and steady employment. Crossroads Solar’s mission is to assist these individuals by providing them with jobs in their solar module manufacturing plant on East Sample Street in South Bend. People come first, which is why Crossroads is committed to providing their employees with a working wage and providing their customers with high-quality products at a competitive price-point. Crossroads is also committed to helping the environment by providing a product that is at the forefront of our society's transition to becoming carbon-neutral.
Through Ways of Rebuilding Community (WORC), an extension of the Meyer Business on the Frontlines Program, Crossroads Solar has partnered with the University of Notre Dame to help navigate the challenges they are facing as a result of the COVID-19 pandemic and develop a business model and long-term strategy that will generate growth and sustainable success for their business.
Our analysis identified many potential avenues for long-term growth of the business, but our initial recommendations focus on two primary areas: market sizing and pricing strategy.
Through discussions with industry experts and individual resources, we identified several potential target markets, with the primary being Northern Indiana’s Recreational Vehicle (RV) industry. With most of the world’s RV manufacturing taking place a short drive from Crossroad Solar’s front door, focusing on this niche market seems like a natural match.
To be competitive in the RV space, we recommend that Crossroads Solar pursues the following changes to their business model. First, Crossroads Solar should add a second shift to increase their production capacity. Even if it was decided to stay away from the RV industry, a second shift can help Crossroads to land larger contracts with installers. Second, we recommend that Crossroads invests additional effort into Quality Assurance. Though a market certainly exists for “B-Panels”, larger contracts with installers will likely be for higher quality “A-Panels”. Marty and Pat have a desire to put a high-quality product on the market, and taking extra measures to ensure quality will continue to keep them aligned with that goal. Once we have increased output capacity and quality, Crossroads can begin to expand into the RV industry by building relationships with manufacturers and installers that have deep roots in Northern Indiana. These relationships can result in significant orders, which can now be sustained through quantity and quality, and Crossroads can begin to develop the smaller panels required for Recreational Vehicles.
Though these recommendations pertain specifically to the RV industry, we have found alternative pathways for which we can apply the same framework. For example, prisons are an excellent avenue given their alignment with Crossroads’ mission and recent trends to save taxpayer dollars; schools and hospitals are similarly strong candidates.
One of Crossroad Solar’s primary goals is producing a high-quality product as a price that competes in the market. However, devising a pricing strategy for a product that is almost exclusively produced internationally can be a challenge. Through extensive market research and competitor analysis, we believe that Crossroads Solar can price their products in a way that both meets their goal of being competitive, while also enabling them to grow their business and provide sustainable employment for the formerly incarcerated individuals they serve.