Pv Technologies

1. REASONS:

1. Bid prices of the competitors’ products were significantly lower than PVT’s.
2. Solenergy had committed to a renewed focus on expense control.
3. Morgan might have perceived little differentiation in efficiency and expected service life of competing invertor products.
4. Industry wide focus on cost cutting
5. He reasoned that an enhanced maintenance schedule and proactive quality control program could offset inferior performance characteristics of the less costly inverters.
6. Maybe their current policy of testing equipment performance and specifications against competitors’ offerings is faulty and in reality their product’s overall performance is much closer to the competitors’ products and that is what morgan is basing his judgement on.
7. 5 year warranty advantage that PVT doesn’t matter because Solenergy’s internal maintenance and quality control systems were capable of maintaining products cost effectively.
8. Confidential evaluations conducted by solenergy may be faulty.

1. Evaluation:

1. Warranty increase would not matter to Solenergy for reasons mentioned above.
2. 99% uptime guarantee at no cost would drastically reduce profit margins for PVT
3. Accelarating the introduction of 1.25 MW inverter with 98.5% efficiency will reduce the overall price for Solenergy but at the cost of operating malfunction dangers arising from

compressed testing timeframe.

1. Initiating a dialogue with Morgan to confirm Salvatori’s findings seems to be the best course of action . They could influence Morgan through Salvatori to share the criteria on which they drew conclusions. They could then persuade Solenergy to standardize the invertor performance evaluation technique and prove :

1. Their expected much-higher efficiency and reliability.
2. Most cost-effective alternative available in the market for the said performance characteristics.

       3.     Short term policies:

PVT ‘s website should show the efficiency and service life advantage of its products over competitors.

They should ensure that Morgan’s report leak doesn’t happen in the future because it can prove detrimental for them.

Long term policies:

-      They should review their current policy of testing equipment

-      PVT should regularly evaluate needs of its business segments and customers in order to make desirable products