The factors lead to the negative evaluation
The reason can be so, please find few points that could lead for negative evaluation.
PV technologies presumed that they had an upper edge on the deal considering the relationship of its sales team with the client over and above they had installations working weel and good for quite some time .
PV Technologies designed and priced their products based on competitor and not based on customer requirement.
PVT was not reevaluating the needs of it’s business segments and key customers on a regular basis.
Mistake in judgment
Invalid information
Industry has not developed a set of standardized metrics to measure the reliability and efficiency of PV invertors. As a result manufactures used performance measures that were not consistently defined or universally applied.
Course of Action
Alternative 1: Offer to extend the original warranty at internal cost from 10 to 20 years.
PVT already has an advantage in this field according to Exhibit 2. So that should be more than enough competitive advantage for the company, is not identified or realized. The economic value of this alternative can be compensated during the time of sales. There is a lot of unforeseen risk in this . But this solution is the most appropriate.
Alternative 2: Offer a 99% uptime guarantee at no cost
Highly impractical and it would attract future contract negotiations also. Will have to pay huge compensation in case of any causality. It’s not advisable to get into a deadlock. The low revenues on warranty will deduce the profits in this deal. This offer could be a tempting offer for a client.
Alternative 3: Accelerate the introduction of a new product, scheduled to release shortly, with higher capacity at 1.25MW and 98.5% efficiency.
Alternative 3: Accelerate the introduction of a new product, scheduled to release shortly, with higher capacity at 1.25MW and 98.5% efficiency.
This solution...