Pvt Case Analysis

  PVT Case Analysis

This paper introduces the situation between PV Technologies and Solenergy Development LLC. PVT has developed and maintained a strong relationship with Solenergy, a leader in solar energy generation systems, who was their largest customer. Solenergy recently won a contract from the city of Barstow, CA to develop a 100MW power plant and had sent out Request for Proposals (RFP) to PVT and other photovoltaic inverter companies which are Soma Energy and BJ Solar.

Developing factors for clean energy sector:

•    Shrinking supply sources such as oil and gas.

•    Rising the costs of traditional energy sources.

•    Global demand for environment situation.

•    Public policies are encouraging to use clean energy.

•    Federal program the US stated that 80% of the electricity produced my clean energy by 2035.

Profile of PV Technologies, Inc.

PVT is Solar Tech Industry leader in Product innovativeness, quality, and performance which proven by their annual revenue was 30 billion dollars in 2010 (Exhibit 1). Market share and revenue are earned by product reputation for efficiency and reliability. Also, PVT supply power plants from 10 to 200MW in over 25 countries. PVT’s sales person Jim Salvatori brought PVT a strong industry reputation and major client Solenergy Development LCC. PVT’s director of Sales and Marketing, Nathan Rubenstein is optimistic about his firm could get the contract for new power plant project. However, PVT has to compete with two other PV inverter suppliers for the request for suppliers in order to make it happen.

The strength of PVT.

•    Solid Balance sheet

•    Strong profitability & high cash flow

•    Strong relationship with client

•    Investments in R&D and Technology

•    Product reputation

•    Complex technical support

•    Raising clean energy market

•    Political will

•    Efficient and technical support. Conversion ratio 98.

Weakness of PVT

•    Expensive product and technical service.

•    Competitors are focusing on low prices.

•    Not enough sales person if Salvatori leaves the company, it will be a huge loss.

•    Seems like Sales director does not have the plan to get the contract. (did not find info about strategy)

Profile of Solenergy Development LLC

Solenergy Development LLC, PVT’s largest client and they co-operated in a 25MW power plant for years which built the strong business relationship. Solenergy’s senior team management team was strong relationship with PVT. Also, they liked the excellent performance of the PVT’s product. However, Solenergy selected group of companies including PVT to invite to bid on the project. The evaluations examined the company’s financial conditions and products and directed by Greg Morgan, the chief electrical engineer at Solenergy, whose judgments were highly influential to the industry. Moreover, Greg Morgan and Jim Salvatori had the strong relationship and Morgan often updates information about the evaluation to Salvatori.