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    Case Evaluation-PVT Inc.: by Group-1 B2B-C

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    Intekhab Aslam
    PVT was evaluated by Solenergy and ranked third below competitors due to higher bid prices, despite having a superior product in terms of efficiency, reliability, and productivity. Publishing the evaluation results could negatively impact PVT. While the long-standing relationship between PVT and Solenergy did not provide an advantage in the evaluation, loss of Solenergy as a client could significantly affect PVT's business. It is recommended that PVT confirm the reported evaluation findings with Solenergy and look to reduce costs while providing additional value-added services to become more competitive.

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    Case Evaluation-PVT Inc.: by Group-1 B2B-C

    Uploaded by

    Intekhab Aslam
    23 views13 pages
    PVT was evaluated by Solenergy and ranked third below competitors due to higher bid prices, despite having a superior product in terms of efficiency, reliability, and productivity. Publishing the evaluation results could negatively impact PVT. While the long-standing relationship between PVT and Solenergy did not provide an advantage in the evaluation, loss of Solenergy as a client could significantly affect PVT's business. It is recommended that PVT confirm the reported evaluation findings with Solenergy and look to reduce costs while providing additional value-added services to become more competitive.

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    PV Technologies case solution

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    PVT_Group_1_B2B_C

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    PVT was evaluated by Solenergy and ranked third below competitors due to higher bid prices, despite having a superior product in terms of efficiency, reliability, and productivity. Publishing the evaluation results could negatively impact PVT. While the long-standing relationship between PVT and Solenergy did not provide an advantage in the evaluation, loss of Solenergy as a client could significantly affect PVT's business. It is recommended that PVT confirm the reported evaluation findings with Solenergy and look to reduce costs while providing additional value-added services to become more competitive.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    23 views13 pages

    Case Evaluation-PVT Inc.: by Group-1 B2B-C

    Uploaded by

    Intekhab Aslam
    PVT was evaluated by Solenergy and ranked third below competitors due to higher bid prices, despite having a superior product in terms of efficiency, reliability, and productivity. Publishing the evaluation results could negatively impact PVT. While the long-standing relationship between PVT and Solenergy did not provide an advantage in the evaluation, loss of Solenergy as a client could significantly affect PVT's business. It is recommended that PVT confirm the reported evaluation findings with Solenergy and look to reduce costs while providing additional value-added services to become more competitive.

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    Case Evaluation-PVT Inc.

    By Group-
    1 AMANDEEP SINGH CHAWLA
    B2B-C AKSHAY MENON
    ARNAB MANDAL
    FENIL DALAL
    INTEKHAB ASLAM
    KSHITIZ GOEL
    PUNEET MARWAH
    SHIKAR JEET
    Evaluation of PVT in Solenergy
    Regularly scheduled and confidential vendor evaluation- Financial conditions & products offered (Operational Risk management policy)

    Conducted by Greg Morgan, Solenergy’s chief electrical engineer

    PVT’s product superior in terms of: Efficiency, Reliability, Productivity

    Bid prices for PVT was significantly higher than the competitors

    As a result, PVT was ranked below the competitors (Third)

    If the result got published, it could have a negative impact on PVT

    The relationship between PVT and Solenergy didn’t had an added advantage on the evaluation as Solenergy had a renewed focus on
    expense control.
    Brush Fire or an Important Issue?

    It is a very Important issue to If the report is to be true, and Loss of a huge client and might Internal operations might be
    be taken care of (long term) the press release is done of the effect future dealings with the affected
    decision: company
    Endorsement of the
    competitors
    Morgan is an influential figure
    in the industry, other
    companies might follow
    Solenergy
    Profitability of Alternatives
    Current Alternative 1 Alternative 2 Alternative 3
    Total Project Revenue $18000000 $18000000 $18000000 $15000000

    Warranty Premium 3240000


    Maintenance contract 1600000
    income
    Total Revenue $18000000 $21240000 $19600000 $15000000
    Total Cost of Sales 10800000 10800000 10800000 8460000
    Warranty expense 3240000
    Gross expense- guarantee 6980172

    Maintenance contract 1450000


    expense
    Sales commission 72000 72000 72000 60000
    Project cost of sales 10872000 14112000 19302172 8520000
    Project Gross Profit $7128000 $7128000 $297828 $6480000
    Alternative 1: extend • Pros: Value added benefit
    warranty from 10 to 20 • Cons: Already competitive advantage with 10 year warranty, Additional
    expense, impact on profitability
    years

    Alternative 2: 99% • Pros: Value added service, reinforce quality, durability, and reliability
    • Cons: loss of warranty revenues, low profitability, negative impact on future
    uptime guarantee dealings

    Alternative 3: • Pros: would be the most efficient and reliable inverter in the market, price the
    model lower, first mover advantage
    Introduction of higher • Cons: could be a failure due to lack of proper testing, alternative of coupling
    capacity product the combinations of smaller inverters

    Alternative 4: Confirm • Pros: A conservative approach, previous relations between PVT and Solenergy,
    the reported findings of can take a course of action based on the actual decision taken by Morgan
    • Cons: Difficult to convince Morgan
    the evaluation
    PVT New Launch Promotion Strategies

    ANNOUNCEMENT OF TRADE JOURNALS SALES COLLATERAL TARGETED EMAIL


    NEW OFFERING BY MATERIALS CAMPAIGNS TO
    PRESS RELEASES GENERATE LEADS
    Price Conscious Consumer

    Reliable Productive
    Need a
    Reliable and
    cost
    effective
    Bull’s Eye product
    Efficient
    Integrated
    Excellent
    Photovoltaic
    innovative

    Positioning Most
    solution conversion
    method Market
    Model for efficient
    and
    Leader in
    inverter
    PVT 1.25 reliable
    inverter Best for my money Value for
    industry

    MW CI on the
    market
    98.5%
    efficiency rate
    money PVT 1.25
    MW CI is a
    great cost
    efficient
    Double offering
    Warranty

    Economical
    Sturdy Design Constraints

    Soma Energy, BJ Solar


    Stakeholders view about Accelerated New
    Offering
    ENGINEERS SALES & CUSTOMER SERVICE
    • New product with new objections (putting
    • It is most efficient and reliable negative impact on downtime)
    • Cost-saving and new state of art manufacturing • Sold at new reasonable price as utility
    techniques would allow PVT to price new inverter projects were becoming larger
    very close to existing 1.0 MW inverter which • Cannibalism of existing 1.0 MW product
    otherwise not been possible.
    PUBLIC RELATIONS
    Strengthen PVT’s position in the market
    R&D for being first to innovate and introduce
    new market that could create positive
    • Convenience for Solenergy to use PVT & latest impact on revenues.
    market product
    • Expressed concern about compressed time-frame
    which could lead to malfunctioned product being
    introduced in the market damaging overall FINANCE
    reputation
    • Expressed concern in regards to potential
    malfunctions and not serve requirement of
    Solenergy
    • Lower cost options were feasible by
    coupling two smaller size inverters rather
    than one single large inverter
    • R& D cost are not covered up
    PVT’s Short and Long
    Term Improvement
    Policies
    SHORT TERM POLICY

    Review the current policy of testing equipment


    performance and specifications against competitor’s
    offerings

    Revaluate the needs of its business segment and key


    customers on more frequent and regular basis to mitigate
    similar problem in future

    Review the manufacturing cost to find the opportunity to


    price the product more competitively
    LONG TERM POLICY

    PVT technologies should involve in market analysis to assess


    the varying customer requirements and needs

    Customized package offerings in terms of addons at


    convenient prices to customers

    Check on competitor regarding its products along with its


    offers and prices and set its own product at reasonable
    price without comprising on quality. PVT can set various
    price points to cater the need of various segments
    Recommendation
    • PVT should go for Alternative 4 first.
    • PVT can reduce already offered double warranty by industry
    standards to half and offer the cost benefits by this, directly passing
    to Solenergy.
    • Coupled with Decreased costs and giving Add on packages like
    Extended warranty, Priority repairs Etc. can change the tide in favor
    of PVT

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