PV Technologies Inc Case

Submission
MANAGING BUSINESS MARKETS COURSE

Sonal Pardeshi
PGP/24/459
Question 1: What could be the reasons for the unfavourable evaluation of PV technologies by
Greg Morgan?
The main priority of Solenergy is to control their expenses and this was their focus while performing
their evaluation. They also believed that they had superior maintenance system meaning that the
downtime could be reduced, and service life could be easily prolonged even if they purchase relatively
inferior yet economical product.

Feature PV Technologies SOMA Energy BJ Solar

Nominal AC Output Power 1 MW 1 MW 1 MW
Efficiency (%) 97.5 96.5 95.5
Expected service life (years) 13.2 12.5 10.7
Warranty 10 5 5
List Price $180,000 $170,000 $160,000

After comparing PVT’s product with its competitors, it is seen that PVT is superior in terms of
efficiency, reliability, and productivity. But it was relatively on the costlier side compared to others.
Also, the longer warranty would not attract Solenergy due to their faith on their maintenance systems.

Question 2: Evaluate alternative course of actions available to PVT to gain favourable evaluation
by Solenergy for the Barstow Project?
Feature Increasing Uptime Guarantee New product Talking with
Warranty Period launch Morgan
Pros Improved economic Quality & First of its kind Existing good
value Reliability guarentee product reinforcing relationship with
PVT leadership and Morgan
attracting Solenergy
Cons No extra advantage Cost in lost warrant Product not fully Difficulty in
given and chances of revenues and tested and doesn’t convincing
added & unknown potential for higher fall under budget
expenses costs category

The priority of PVT should be to retain Solenergy as a customer, who themselves prioritize in getting
economical product. So the first step is to speak with Solenergy representative Morgan (Alternative 4)
and understand why they were planning to give poor rating to PVT product. Then they need to
incorporate changes which could be incorporated in short period of time. Some of the changes could be
providing uptime guarantee to make product more reliable (Alternative 2) or reducing costs. PVT
should not worry about reduction in profits in the short term as in the long term good relationships with
customers would fetch them profits.

Question 3: What short term and long-term policies and processes should PVT develop and
implement to effectively improve its marketing programs?
Short Term: PVT needs to re-evaluate their testing policy of the equipment’s performance compared
to the other products available in the market.
Long Term: PVT needs to collaborate with its customers to develop mew products in order to meet the
customers’ requirements and preferences.