Professional Documents
Culture Documents
Case Study
Case Study
:
Were They Asleep At The
Switch?
Industrial
Marketing Case
Study
Present to: Mr. Syed
Asghar Raza
Hasan Mehfooz14648
Floyd Fernandes14196
Beatrice Louis
14399
Shairose Ukanji
14127
Daniyal Bin
Wajahat - 14600
They are the Top Five Fortune 500 Companies using Solar
Power*
With green being all the rage these days, many Fortune 500 companies are making the
switch to solar power by partnering with solar power companies and using solar energy to
power their offices and retail establishments. A voluntary program called The Green
Power Partnership encourages organizations to go green and tracks their annual green power
purchases.
Company Background- PV
Technologies
Founded in 1993 in San Francisco
Specialist in RENEWABLE ENERGIES
$30 billion in revenues (2010)
25 countries
AT A G L A N C E
% of Revenues (2010)
Industrial
Automation
8%
12%
34%
22%
Process
Management
Network Power
24%
Drive Technology
Climate
Technologies
Industry leader in
PRODUCT INNOVATIVENESS
QUALITY
PERFORMANCE
PV Technologies Communications
PV Technologies followed an Integrated Marketing
Company
Approach
Website
Personal
Selling
PVTs sales success
was driven largely by
the nature and quality
of the relationship a
salesperson developed
and maintained with
the decision maker of
the firm.
Trade
A PV inverter is a
critical component in a
photovoltaic systems i.e.
they are Fundamental
components in a PV
system.
Photovoltaic Inverters
convert the direct current
output of a solar panel
into alternative current
that is compatible with
residential or commercial
use.
Case Introduction
Major People Involved in the case:
Nathan Rubenstein (PVTs Director
of Sales and
Marketing)
Jim Salvatori (PVTs Salesperson)
Greg Morgan (Solenergys Chief Electrical
Engineer)
Case Introduction
In late July, PVT received Request for Proposal (RFP) from
Solenergy. The closing date for the response to RFP was October
31,2011
In late November, Salvatori came to know from his sources that
PVT was trailing the other competitors- SOMA Energy & BJ Solar
Salvatoris sources were vague; they believed the evaluation was
based largely on price but werent certain this was the only factor
Morgans updated evaluation would drive the purchase decision
ultimately
Rubenstein & Salvatori were concerned with this, as their
companys reputation & position in the marketplace were at stake
rs Affecting
Specifications
of PV Central Inv
The industry had
not yet developed a set of standardized metrics
to measure
reliability and efficiency of PV inverters.
As a result of this manufacturers used performance measures that
were not universally applied.
IEC 62446 standard is established by IEC , which defined minimum
requirements for documenting.
Central inverter-most failure-prone component- the greatest
PV Tech needs to
get a
Solenergy is
used to
evaluating the
companies
they invite to bid
on their major
projects.
GOOD
E VA L U AT I O
N
of its projects in
order to get the
contract and to
confirm its
leadership
Solenergy often
includes its
comments and
opinions in
press releases.
Morgan
judgements
are highly
influential
throughout the
entire industry
Morgans
Evaluatio
n
Salvatori
Learnt
Different Alternatives
1.
Offer to extend the product
WARRANTY at internal cost
from 10 to 20 years
3.
Accelerate the introduction of the
NEW INVERTER (1.25 MW
with 98.5% efficiency)
2.
Offer a 99% UPTIME
GUARANTEE at no cost for the
customer
4.
Initiate a DIALOGUE with
Morgan to find out the real output
of the evaluation
Comparison
PROs :
The offer would be unmatchable by the competitors.
Signal of high reliability.
CONs :
Too costly, high impact on the profit.
Other customers would ask for it.
Alternative 3:
Investment in a new
model
Alternative 3:
Introduction of
the new 2.5MW
Model
CONs :
Extremely risky and Expensive.
PROs :
More personal approach: we demonstrate we are ready
to personalize our product for them;
First step to build a long term relationship
CONs :
We rely on not public information;
Call for help could make us appear as desperate
Relevant criteria
for Solenergy:
Price
From PVTs
perspective
these are
elements that
real add value to
the customers
into the long run
Understand
if the
evaluation is
real and
what his real
needs are
Speak with
Morgan
Adopt an ad
hoc strategy
The strategy