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

Problems / Issues faced by the PV TechnologiesAs per the teaching from gross revenue Manager Mr.Salvatori, PVT expertness lose the contract against SOMA capacity and BJ Solar from the call forthding, which is one of the high visibility project conducted by Solenergy exploitation LLC who won to construct a PV solar energy Power Plant. Mr. Greg Morgan antique Engineer conducted the evaluation of the bidders and the assumed bulge outcome is that PVT will be out of the running potential supplier because of the disadvantage compared to other bidder though the feature of the increase is incomparable.If PVT loses this contract then its re regularizeation and position in the grocery Place are at stake as the announcement might through a press conference.Action Plan for PVT1. Competitor analysis We should never underestimate the challenger and should analyse antagonist before we bid or approach for any kind of order. They should know what are their whirls, wrong structure, services offered, value offered and geographic location.2. Increase Marketing Efforts The major blemish of PVTs lacking in reaching or communicating their product margin and service to the clients/ customer. They should start PR activities to improve their reach and increase their client relationship as well as customer base. In immediatelys grocery they should non rely on only the quality, gross 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 colloquy credible outset of tuition and proper way of communication (Internal and external) is needed.3. berth of Communication They should also not rely on the information by the sales people which made them react even when the radical of information was unethical. Losing a customer like Solar Energy will put their reputation in trouble in the industry. Plan of action to bring home the bacon thecurrent b iddingSince the management is concerned about the decision interpreted by Solenergy, they should have a bun in the oven a casual talk with Morgan and know the occupy situation of the bidding. Recommendation for PVT would be to offer its brisk product, accelerate the incoming 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 much lesser than the competitor. Choosing other elections like extending warranty to 20 days or offering 99% uptime guarantee at no court will lead to a lot of disadvantages to PVT to sustain in the market and for future orders as well. Disadvantage by offering Option1 Solenergy will have to pay a high price upfront. Though the quality of the PVT inverter is bona fide still PVT will have to increase manpower for the utilisation of maintenance. This natural selection will lead to addition al expenses and more complications in the future. Offering this election dilute the market (by increasing the service offered will increase the arithmetic mean from customer for every order) and will affect future orders too.Disadvantage by offering Option 2Unexpected cost from the failure of the product ( due to Climate condition / economic factor / Power source ) can put PVT into huge loss.Increasing manpower only for the purpose of maintenance. Margin in this offering is also very low for PVT. Orders should not be taken for the sake of reputation. Market will get thin outOverall 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 same (alternatives), 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 b lanket standard and reputation, and perchance 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 in style(p) technology and the most robust management system.The advantage by offering Option 3 will be that competitor cannot offer a new highly efficient product in such a short span 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, explosive oil market, environmental awareness, tax incentives are the main drivers towards the reaping of renewable energy.Market value for 2010 was $6 b illion more than 100% growth from the previous year and the market for solar PV forecasted to increase by 30.4% CAGR for the stopover of 2010-15. Its a vision of a federal government to count on on the renewable energy to produce 80% of the electricity by the year 2035.Around the world, 85% of electricity is being derived from oil, gas and char and less than 1% are from solar energy, so there is vast potential in the market for growth. PVT is a pioneer in renewable energy supply to more than 25 countries with their quality and effective product.The beneath calculation are done as per the calculation in the PVT option like the following join cost of Sale 60% of the positive Project rankWarranty Expenses & Premium 18% of the Total ValueMaintenance castrate Income 8.9% of the Total Valuegross Expenses Guarantee 38.7% of the Total valueMaintenance agitate Expenses 8% of the Total valueSales Commission .4% of the Total ValueAnnexure 1Considering if SOMA uses the alternat ive actualAlternative1Total Project valueWarranty PremiumMaintenance Contract IncomeTotal RevenueTotal cost of SalesWarranty Expenses glaring Expenses GuranteeMaintenance Contract ExpensesSales CommissionProject cost of salesProject Gross Profit1700000010200000680001026800067320001700000030600002006000010200000306000068000133280006732000Alternative21700000015130001851300010200000659238513694446800018229829283171Annexure 2Considering if the BJ Solar uses the alternative trustworthyAlternative1Total Project valueWarranty PremiumMaintenance Contract IncomeTotal RevenueTotal cost of SalesWarranty ExpensesGross Expenses GuranteeMaintenance Contract ExpensesSales CommissionProject cost of salesProject Gross Profit1600000096000006400096640006336000160000002880000188800009600000288000064000125440006336000Alternative2160000001424000174240009600000620459712888896400017157486266514