Pv Technology

First, let me briefly describe the situation here. PV Technologies (PVT) was a premiere supplier to several segments of the solar energy technology field. In late July 2011, PVT received a Request for Proposal (RFP) from a long-time client, Solenergy Development, a major developer of energy generation systems. Solenergy's chief electrical engineer, Greg Morgan, began his extensive evaluation of the select group of companies he had invited to bid on this major project. The executives at PVT knew they were the company to beat, as their product was the best. However, it had been unofficially revealed that PVT trailed the other competitors, leaving PVT to most likely lose the contract because of the higher price. Although the evaluation had not been published, Morgan’s judgment is highly influential throughout the industry and Solenergy most often included its opinions and observations in press release. So PVT need take serious consideration about this rumor. In order to finally get the contract and confirm its status as a flagship company in this field, PVT came up with for options.

There are positive and negative sides of all alternatives. From the profitability side, we can see from the chart, alternative 2 was too super costly and has very high impact on the profit. So we should definitely cross out this option although this offer would be unmatchable by the competitors and show the high quality and reliability of PVT’s products. For alternative 1, it showed good quality and higher standard, but warranty was not a key factor and it was relatively costly. For alternative 4, it was good to have more approach with our customer, but we rely on not public information, directly reach out could make us appear as desperate. So our final choice is alternative 3 which was relatively profitable. Also it had no change in pricing strategy and offered the most efficient and reliable inverter in the market to maintain PVT’s leading position.