PV Technologies: Case Study Analysis

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Q1: What could be the reasons for the unfavorable evaluation of PV technologies by Greg Morgan? a) The bid prices of the competitor’s products especially BJ Solar’s were significantly lower than PVT’s. b) Solenergy was committed to a renewed focus on expense control and the upfront cost differential was significant c) An enhanced maintenance schedule, coupled with a proactive quality control program designed to identify potential performances issues before they occurred, should compensate for the inferior performance characteristics of the less costly inverters. d) The enhanced oversight and expanded maintenance schedule would raise operating cost, the lower net ownership costs argued in favor of selecting the lowest cost product.…show more content…
Strategic planning felt that this was the preferable way to gain the top spot in the competition. It would avoid compromising the current strategy and pricing approach. And the timing was fortunate; they believed that the introduction of the new inverter, scheduled for April 2012, could be moved up to mid-January 2012, by simply re-arranging the reliability/efficiency testing queue and modifying the testing routine, which would then meet Solenergy’s product availability requirements for the Barstow project. The sales force believed the next generation inverter, while potentially inviting a new set of objectives, could be successfully sold to large users at the suggested net price of $187500 because utility projects were becoming larger. Marketing and Public Relations also supported this approach. The new technology was what the market wanted for large scale projects and would reinforce PVT’s leadership position by being first to market. R&D believed that, given the new inverter’s superiority, Morgan would value Solenergy’s having the opportunity to the first to employ the latest technology and the most robust management system d) Tactfully initiate a dialogue with Morgan to confirm the reported findings of the evaluation. Rubenstein and Salvatori suggested that before any changes were made to product and market strategies, PVT should approach Morgan directly, sharing the information PVT had obtained about the reported evaluation. If
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