It should be noted that introduction of new competitors in the market often change the market in different ways. In this case, some Chinese firms, that developers and manufacturers the same equipment as PVT have recently entered the same business and market as PVT. It is claimed that the quality and performance of their equipment are of inferior quality and performance; however, the cost differential is significantly low compared to PVT’s. Therefore, if Morgan settled on such equipment, the sure thing that Rubenstein and Salvatori should ask themselves is the nature of contract the Solenergy worn for it to settle on such converters. It may be assumed that Solenergy’s contract was short term and after short while the materials and equipment of the contract will be useless, then it will pointless for Morgan to concentrate on costly materials and equipment (Cesi'edes and Badame 06). In this sense, Rubenstein and Salvatori will be force to implement their third alternative by accelerating the introduction new products that should be highly effective but with lower costs.
The Rubenstein and Salvatori’s problem can only be solved in two ways that include implementing two of their proposed strategies that they had presented before the PVT’s executive committee. ...Show more