P V Tech
Background of case study:
PVT is a leader in solar power inverters, a critical component in any solar power system. They are currently trying to win a contract from Solenergy, a major long-time client, but reports of an evaluation performed by Solenergy shows PVT in third place according to their criteria. These reports are currently not official, but if true, PVT will lose the contract. Rubenstein and Salvatori call a meeting with senior executives to discuss the following 4 options:
• Extend their warranty from 10 to 20 years
• 99% uptime guarantee
• Offer a new more efficient product earlier than they would have with higher capacity at 1.25MW and 98.5% efficiency.
• Approach Morgan and confirm the reports
Major Issues and recommendations:
Issue 1:
Morgan’s analysis of PV Technologies
Recommendation:
I believe Morgan has concentrated only on the pricing aspect of PV Technologies. As per the Exhibit 2, when considered the price difference between the SOMA and PVT is $10,000 and also PVT’s product has high efficiency and also offers 10 years warranty where as others are offering only 5 years of warranty and also has better Expected service life that other competitors. As Morgan is focusing on expense control, he might have felt that he would get what he wanted with the warranties and service of the other company's his overall cost of ownership will go down and his management might get satisfied.
Issue 2:
Lack of very good communication with Solenergy and other customers (Probably)
Recommendation:
I believe that one of the biggest contributors to PVT not being the top option for Solenergy is their poor communication. In today's market, it is all about the customer and knowing what they want, how they want it, and why they want it from you. Knowing that your best sales person has a good relationship with that company does not mean that they will go for your company all the time.
So, they need to instill policies which effectively communicate their
PVT is a leader in solar power inverters, a critical component in any solar power system. They are currently trying to win a contract from Solenergy, a major long-time client, but reports of an evaluation performed by Solenergy shows PVT in third place according to their criteria. These reports are currently not official, but if true, PVT will lose the contract. Rubenstein and Salvatori call a meeting with senior executives to discuss the following 4 options:
• Extend their warranty from 10 to 20 years
• 99% uptime guarantee
• Offer a new more efficient product earlier than they would have with higher capacity at 1.25MW and 98.5% efficiency.
• Approach Morgan and confirm the reports
Major Issues and recommendations:
Issue 1:
Morgan’s analysis of PV Technologies
Recommendation:
I believe Morgan has concentrated only on the pricing aspect of PV Technologies. As per the Exhibit 2, when considered the price difference between the SOMA and PVT is $10,000 and also PVT’s product has high efficiency and also offers 10 years warranty where as others are offering only 5 years of warranty and also has better Expected service life that other competitors. As Morgan is focusing on expense control, he might have felt that he would get what he wanted with the warranties and service of the other company's his overall cost of ownership will go down and his management might get satisfied.
Issue 2:
Lack of very good communication with Solenergy and other customers (Probably)
Recommendation:
I believe that one of the biggest contributors to PVT not being the top option for Solenergy is their poor communication. In today's market, it is all about the customer and knowing what they want, how they want it, and why they want it from you. Knowing that your best sales person has a good relationship with that company does not mean that they will go for your company all the time.
So, they need to instill policies which effectively communicate their