Sam White and Sorin Grama wanted to start their own company. The two partners were “interested in solar energy technology” (Scarborough, 2014, p. 673). They managed to develop several solar-powered units and systems. They launched their company in 2007. The main goal of Promethean Power was to introduce solar energy to the Indian dairy industry.
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The targeted region lacked proper refrigeration. The company managed to develop a proper solar-powered chiller for this industry. However, R.F. Chadramogan realized that the system “was costly, complex, and too large” (Scarborough, 2014, p. 673). The owners of the company failed to reconsider their options. Rajat Gupta encouraged the owners to produce electric-powered units in order to emerge successful.
White believed that the decision would eventually make the company profitable. Such profits would be used to develop inexpensive and practical solar-powered technology (Scarborough, 2014). However, Grama believed that the main premise of the company was to produce and market solar-powered units.
Initial Steps to Avoid the Current Problem
According to the case study, Promethean Power wanted to produce solar-powered units for different dairy farmers in India. The company developed a prototype chilling unit after its inception. The company failed to undertake the required market studies and analyses. The prototype was sold to one of the targeted clients. This malpractice explains why new problems emerged later.
The prototype was also expensive and large. This new product was also complex (Scarborough, 2014). That being the case, the firm should have undertaken more studies in order to develop the most appropriate solar-powered product. This fact explains why the company’s solar-powered unit did not succeed in the market.
Promethean Power also failed to examine the specific needs of different customers. Such a study would have made it easier for the firm to develop customized chillers depending on the needs of different customers. The owners of the firm assumed that its solar-powered chiller would succeed in the market (Scarborough, 2014). However, the company had not analyzed the changing expectations of different customers.
This malpractice resulted in more problems. The company did not have a proper business strategy. The owners of the company mainly focused on profits. They lacked a vision thus affecting the firm’s goals. The firm did not have a proper marketing strategy. The newly-produced chillers could not fulfill the needs of the targeted dairy farmers.
Why Grama is Balking at Switching the Company’s Chiller
Sorin Grama is not ready to produce electric-powered chillers. From the beginning, Grama wanted to have a unique company that produced solar-powered units for Indian dairy farmers. The decision to deviate from this original purpose will give Promethean Power a different image. Grama’s original vision was to build a unique company that offered solar-powered chillers to different customers.
He believes strongly that the production of electric-powered units will affect the company’s original purpose (Scarborough, 2014). This fact explains why Grama did not want his company to produce electric-powered chillers for the targeted farmers. Grama wants to create a successful firm that can offer solar-based solutions to more clients.
Why Promethean Power Should Stick to its Original Vision
Every company should have its unique goals. It should also have a unique competitive advantage. That being the case, Promethean Power should focus on its original vision. The firm should have a powerful growth strategy. This strategy will ensure the company focuses on the best technologies. The firm will be able to produce competitive solar-powered chillers.
Many clients are embracing the use of green energies (Scarborough, 2014). Every person wants to live in a sustainable environment. This fact explains why Promethean Power should produce more solar-powered chillers in order to emerge successful. The decision to produce electric-powered units might make the firm more profitable. However, this approach will affect its future business strategy.
The important thing is for Promethean Power to focus on the best business practices. The firm should use modern technologies in order “to produce smaller, cheaper, and effective solar-powered chilling units” (Scarborough, 2014, p. 673).
The company should use its financial resources to support the best research and development (R&D) practices. This R&D team will produce effective solar-powered chillers that can fulfill the needs of many clients.
Promethean Power is focusing on the best business outcomes. The decision to produce electric-powered chillers can make the firm successful. However, the approach will affect its future business goals. That being the case, Promethean Power should focus on its original vision. It should use the power of R&D to produce competitive solar-powered chillers. This strategy will eventually support the firm’s goals.
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The company will attract new customers who want to safeguard their surrounding environments. This approach will also ensure the company focuses on its original purpose (Scarborough, 2014). The world is currently embracing the use of renewable energy.
More customers will also emerge in the future. In conclusion, the owners of the company should continue producing solar-powered chilling units. This strategy will make Promethean Power successful.
Scarborough, N. (2014). Essentials of Entrepreneurship and Small Business Management. New York: Pearson.