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467 - Kartik Narayana (PVT Case Submission)

1. PVT's solar inverter was evaluated unfavorably by Solenergy due to its higher price compared to competitors, even though it had better efficiency, reliability, and lifespan. PVT's priority should be retaining Solenergy as a customer rather than short-term profits. 2. The best alternative for PVT is to offer a 99% uptime guarantee at no additional cost to emphasize the inverter's reliability and lower maintenance costs for Solenergy. 3. Short-term, PVT should re-evaluate its testing policies compared to competitors. Long-term, PVT should collaborate with customers to develop new products meeting their needs.

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47 views2 pages

467 - Kartik Narayana (PVT Case Submission)

1. PVT's solar inverter was evaluated unfavorably by Solenergy due to its higher price compared to competitors, even though it had better efficiency, reliability, and lifespan. PVT's priority should be retaining Solenergy as a customer rather than short-term profits. 2. The best alternative for PVT is to offer a 99% uptime guarantee at no additional cost to emphasize the inverter's reliability and lower maintenance costs for Solenergy. 3. Short-term, PVT should re-evaluate its testing policies compared to competitors. Long-term, PVT should collaborate with customers to develop new products meeting their needs.

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kartik
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PV TECHNOLOGIES INC – CASE

ANALYSIS
MANAGING BUSINESS MARKETS COURSE

R. KARTIK NARAYANA
PGP/24/467
1. What could be the reasons for the unfavourable evaluation of PV technologies by Greg
Morgan?
Feature PV Technologies SOMA Energy BJ Solar
List Price $180,000 $170,000 $160,000
Warranty 10 5 5
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

Solenergy has been focusing on controlling their expenses and this was the main focus for them while
performing the evaluation. When compared to the competitors, the product from PVT technology is
superior in terms of efficiency, reliability and productivity. But it was relatively costly compared to
others. It the priority of the Solenergy is considered the PVT invertor doesn’t look attractive to them.
Higher reliability and expended warranty services would not attract the company as Solenergy believes
that their enhanced maintenance system would mean less down time for the product and the service life
could be easily prolonged even if they purchase relatively inferior yet economical product.
2. Evaluate alternative course of actions available to PVT to gain favourable evaluation by
Solenergy for the Barstow Project?
PVT had thought of 4 alternative courses of action:
Alternative Pros Cons
Increase warranty Economic value of the 10 years warranty itself is high, so 20 year
period from 10 product is improved wouldn’t bring in extra advantage.
years to 20 years Chances of additional and unknown expenses
99% uptime Guarantees the quality and Cost in lost warrant revenues and potential for
guarantee at no costreliability higher costs
Launch new First of its kind product The product is not fully tested
product which is would reinforce PVT Lower-cost approaches are popular which use
superior leadership and opportunity group of small inverters rather than one big
to be first also would be inverter
attractive to Solenergy
Initiate a dialogue Good Relationship with Pride behaviour of Morgan and difficulty in
with Morgan Morgan convincing.

Considering the different alternatives, it is better to go with 2nd alternative (99% uptime guarantee at no
additional cost), as the main priority is to retain Solenegry as a customer rather than making profits in
the short term, because the evaluation reports of Solenergy carries so much recognition that any negative
comment on PVT in the report might affect their customers, which would eventually affect their
revenue. This alternative would be successful in gaining attention of Soleenrgy, as this alternative
reinforces the reliability of the product and assures low maintenance cost for the user.
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.

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