MBM Case1 Notes PV Technologies

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What is the case about

The case is about PV Technologies, Inc., a global leader in the photovoltaic inverter industry, and
their response to a Request for Proposal (RFP) from a long-time client, Solenergy Development
LLC. Solenergy had won a large contract from the City of Barstow, California, to construct a PV
solar energy power plant and was seeking a supplier of utility scale central inverters. The case
explores the challenges faced by PV Technologies in responding to the RFP and the potential
impact on their position in the industry.

Simple:

The case of PV Technologies, Inc. is about a company that is a leader in providing equipment for
solar energy systems. They received a request from a client to supply inverters for a large solar
power plant project. However, there were challenges because the client's engineer, Greg Morgan,
had doubts about the performance of PV Technologies' new inverter technology. This caused
concerns within the company about potential malfunctions and competition from cheaper
Chinese products. The company had to decide how to address these challenges to maintain its
position in the market.

What were the challenges faced by PV Tcehnologies

PV Technologies faced several challenges in responding to the RFP from Solenergy Development
LLC. One of the main challenges was the evaluation process conducted by Solenergy, which was
directed by Greg Morgan, the chief electrical engineer at Solenergy. Morgan's judgments were
highly influential throughout the industry, and his evaluations often foretold the ultimate
outcome of the bidding. Another challenge was the compressed testing timeframe for PVT's new
inverter technology, which raised concerns about potential operating malfunctions. Additionally,
the entry of Chinese firms into the US market with lower-cost equipment signaled the
approaching "commoditization" of PV inverters, which posed a threat to PVT's market position.

What factors contributed to PV Technologies' dominance in the solar energy technology field?

PV Technologies' dominance in the solar energy technology field can be attributed to several key
factors:
1. Strong Reputation for Product Reliability and Efficiency: PV Technologies had a
reputation for developing high-quality and efficient products. This reliability and
performance of their inverters made them a preferred choice for many customers in the
industry.
2. Rapid Response to Service-Related Matters: The company was known for its quick
response and resolution of service-related issues. This dedication to customer service
helped build trust and loyalty among their clients.
3. Experienced Sales Team: PV Technologies had a skilled sales team led by Jim Salvatori,
who had a strong industry reputation and sales expertise. Their sales efforts, particularly
in utility scale and commercial applications, played a significant role in driving sales and
market share growth.
4. Innovation and R&D Focus: The company invested in research and development, leading
to the development of cutting-edge technologies and innovative solutions. This focus on
innovation allowed them to stay ahead of competitors and meet the evolving needs of
the market.
5. Industry Relationships: In the relationship-driven renewable energy industry, PV
Technologies leveraged strong relationships with customers, vendors, and industry
partners to drive sales and business growth. This network of connections helped them
secure contracts and maintain a competitive edge.
Overall, a combination of product quality, customer service, innovation, and industry
relationships contributed to PV Technologies' dominance in the solar energy technology field.

About PV Technologies

PV Technologies, Inc. was founded in 1993 in San Francisco, California, as a global specialist in
renewable energy. The company quickly established itself as a leader in the photovoltaic (PV)
inverter industry, providing equipment for various segments of the solar energy technology field,
including power plant developers.
Over the years, PV Technologies focused on investing in research and development to achieve
industry-leading product innovativeness, quality, and performance. By 2010, the company had
achieved significant revenue growth, with global revenues reaching $30 billion. PV Technologies
served the electric power industry and large-scale solar project developers in more than 25
countries.
The company's product groups, including Industrial Automation, Process Management, Network
Power, Drive Technology, and Climate Technologies, were among the industry leaders, offering
integrated solutions across multiple market segments. PV Technologies' PV inverter division, a
unit within the Industrial Automation Group, had
reached 1.24billioninglobalrevenuebyOctober2011,witha381.6 billion US market.
PV Technologies' success was driven by its strong reputation for product reliability and efficiency,
rapid response to service-related matters, experienced sales team, focus on innovation and
research, and valuable industry relationships. These factors contributed to the company's
dominance in the solar energy technology field and its position as a global leader in renewable
energy solutions.

How did PV Technologies respond to the Request for Proposal they received in July 2011?

PV Technologies responded to the Request for Proposal (RFP) they received from Solenergy
Development LLC in July 2011 by considering various alternative courses of action. The
company's executives, including Rubenstein and Salvatori, discussed four possible responses to
address the challenges presented by the RFP:

1. Offer to extend the original warranty at internal cost from 10 to 20 years.


2. Offer a 99% uptime guarantee at no cost.
3. Accelerate the introduction of a new product with higher capacity at 1.25MW and 98.5%
efficiency.

These options were presented to the senior executives of PV Technologies for evaluation,
adoption of the best alternative, and the development of an implementation plan. The company
aimed to address concerns raised by Solenergy's engineer, Greg Morgan, and to enhance their
competitiveness in the bidding process for the utility scale central inverters needed for the PV
solar energy power plant project in Barstow, California.

what decision has to be taken in the case who has to take this decision?

In the case of PV Technologies, the decision that needs to be made is how to respond to the
evaluation findings presented by Solenergy's engineer, Greg Morgan, in the Request for Proposal
(RFP) process. The decision-makers in this scenario would likely include senior executives within
PV Technologies, such as Rubenstein and Salvatori, who are responsible for evaluating the
alternatives presented and determining the best course of action to address the concerns raised
by Solenergy.

The decision-makers would need to consider factors such as the potential impact on the
company's reputation, market position, and competitiveness, as well as the financial implications
of each alternative. They would also need to assess the risks and benefits of each option and
make a strategic decision that aligns with the company's goals and values.

Ultimately, the decision-makers at PV Technologies would need to collaborate, analyze the


available information, and make a well-informed decision on how to proceed in response to
Solenergy's evaluation findings to maintain their leadership position in the PV inverter market.

who is Salvatori and Rubenstein

Nathan Rubenstein is the Director of Sales and Marketing at PV Technologies, Inc. . He was
optimistic about the company's chances of winning the contract for a high-visibility project with
Solenergy, one of the largest customers of PVT's solar energy business unit. Rubenstein played a
key role in managing PVT's response to Solenergy's Request for Proposal (RFP) and was involved
in addressing the challenges presented by the evaluation findings.

Jim Salvatori is PVT's best salesperson, who brought Solenergy to PVT shortly after he joined the
company . Salvatori was responsible for managing PVT's response to Solenergy's RFP and was
deeply involved in the company's efforts to win the contract for the high-visibility project. He
played a crucial role in the sales and business development aspects of the company's interactions
with Solenergy and was directly impacted by the evaluation findings presented by Solenergy's
engineer, Greg Morgan.

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