Action plan for PV Technologies †when they asleep at the switch Essay

Problems / Issues faced by the PV TechnologiesAs per the study from Sales Manager Mr.Salvatori, PVT might lose the contract against SOMA qualification and BJ Solar from the bidding, which is one of the advanced visibility project conducted by Sol postal code Development LLC who won to construct a PV solar energy agent Plant. Mr. Greg Morgan Chief Engineer conducted the evaluation of the bidders and the assumed outcome is that PVT will be out of the running voltage supplier because of the harm comp ard to other bidder though the quality of the intersection point is incomparable.If PVT loses this contract then its reputation and military capability in the Market Place are at stake as the announcement might through with(predicate) a press conference.Action Plan for PVT1. Competitor analysis We should never underestimate the competitor and should decompose competitor before we bid or approach for any kind of order. They should know what are their snapings, price structure, s ervices offered, value offered and geographic location.2. Increase Marketing Efforts The major disadvantage of PVTs lacking in stretchiness or communicating their product line and service to the clients/customer. They should start PR activities to improve their make water and profit their client relationship as well as customer base. In todays commercialise they should not entrust on only the quality, Sales people contacts and services offered to the customer, rather advertisement / PR activities should drive the customer to approach PVT . There should be a proper line of communication liable source of selective information and proper way of communication (Internal and external) is needed.3. Line of Communication They should in any case not rely on the information by the gross revenue people which made them react even when the source of information was unethical. Losing a customer like Solar Energy will put their reputation in release in the industry. Plan of action to win thecurrent biddingSince the management is concerned about the stopping point taken by Solenergy, they should have a casual talk with Morgan and know the exact situation of the bidding. recommendation for PVT would be to offer its new product, accelerate the introduction of their new 1.25MW model which is 98.5% efficiency. Introducing this new product, might be appealing for Solenergy in all means like efficiency, reliability, service and most importantly price of the inverter which is practically lesser than the competitor. Choosing other options like extending warranty to 20 years or offering 99% uptime assure at no approach will lead to a lot of disadvantages to PVT to sustain in the commercialize and for proximo orders as well. Disadvantage by offering Option1 Solenergy will have to pay a heights price upfront. Though the quality of the PVT inverter is reliable still PVT will have to increase manpower for the end of maintenance. This option will lead to additional expens es and more complications in the future. Offering this option dilute the foodstuff (by increasing the service offered will increase the expectation from customer for every order) and will affect future orders too.Disadvantage by offering Option 2Unexpected hail from the failure of the product ( due to Climate condition / economic factor / Power source ) can put PVT into huge loss.increase manpower only for the purpose of maintenance. Margin in this offering is too very low for PVT. Orders should not be taken for the sake of reputation. Market will get dilutedOverall the competitors can also offer these options (Option 1 and Option 2 Annexure 1 and 2), as they want to enter the market. Since it will reach a broader segment of people, it will be a value addition for the competitor to offer the said(prenominal) ( selections), enter the market and acquire a new client. The competitors revenue can also increase for the year.By offering a new product (Option 3) they can regain top monetary standard and reputation, and peradventure close the deal with them. However, they need to think of a way in which the acceleration of this product will not hurt them financially and can still be delivered to Solenergy on time and possibly reduce the manufacturing cost. Solenergy too can claim that they were the first ones to employ the latest technology and the most ample management system.The advantage by offering Option 3 will be that competitor cannot offer a new highly efficient product in such a short foil of time. Since PVT is known for its Research and development and product innovation, this would be the ideal option for winning this bid.Drivers for Renewable energy Key factors for the competitor to offer a best possible solution.Market for alternative source of energy is in a growing stage. Rising energycost, unstable oil market, environmental awareness, tax incentives are the main drivers towards the increase of renewable energy.Market value for 2010 was $6 bi llion more than 100% growth from the previous year and the market for solar PV forecasted to increase by 30.4% CAGR for the period of 2010-15. Its a visual sensation of a federal government to depend on the renewable energy to produce 80% of the electrical energy by the year 2035.Around the world, 85% of electricity is being derived from oil, gas and coal and less than 1% are from solar energy, so there is great potential in the market for growth. PVT is a lead up in renewable energy supply to more than 25 countries with their quality and effective product.The below counting are done as per the calculation in the PVT option like the following tot cost of Sale 60% of the total excogitate mensurateWarranty Expenses & Premium 18% of the Total ValueMaintenance switch off Income 8.9% of the Total ValueGross Expenses Guarantee 38.7% of the Total valueMaintenance Contract Expenses 8% of the Total valueSales Commission .4% of the Total ValueAnnexure 1Considering if SOMA uses th e alternativeCurrentAlternative1Total Project valueWarranty PremiumMaintenance Contract IncomeTotal taxTotal cost of SalesWarranty ExpensesGross Expenses GuranteeMaintenance Contract ExpensesSales CommissionProject cost of salesProject Gross Profit1700000010200000680001026800067320001700000030600002006000010200000306000068000133280006732000Alternative21700000015130001851300010200000659238513694446800018229829283171Annexure 2Considering if the BJ Solar uses the alternativeCurrentAlternative1Total Project valueWarranty PremiumMaintenance Contract IncomeTotal RevenueTotal cost of SalesWarranty ExpensesGross Expenses GuranteeMaintenance Contract ExpensesSales CommissionProject cost of salesProject Gross Profit1600000096000006400096640006336000160000002880000188800009600000288000064000125440006336000Alternative2160000001424000174240009600000620459712888896400017157486266514