Robotech Irruption In The Us Market Case Solution

Introduction:

The company RoboTech is an industrial robotics company that initiated in 1999 by Pat Chen through financing from her family and the bank at the age of only 29 years old along with the experience of seven years in the semiconducting industry. She has an MBA degree in mechanical engineering with the presence of a competing and hardworking nature. Consequently, it turned out to be a leading contender in its sector, surpassing its dealings and financial plan. Its focus is on developing specialty electronic devices; the enterprise connects its proficiency in motors, motion regulators, and sensors with the up to date advancement in miniaturization.

Pat Chen’s first focus is on the development of specialized robotics devices in order to experience the engines, sensors and motion regulators with advance technology. RoboTech has expertise in robotic devices which helped him to become the main supplier of robotic devices for welding aircraft in the country. During the financial crises of 2008 and 2009, the profitable contracts became unprofitable because the whole market started facing losses which lead to the diversion of funds from current operations to new and innovative one in order to capture more market share for robotic devices. But for new and innovative devices, the company had failed to copyright its technology which enabled the new entrants to enter the market by imitating the new technology along with the offering of similar products atfewer prices than RoboTech.

After spending much time in research and development on robot assisted surgery devices which helps to capture the medical sector, the company started to spend its time in on the analysis of orthopedic surgery. Pat Chen decided to focus on the development of medical robotic devices that would mainly focus on spinal surgeries. It is the field that has not yet any robotic surgical devices for spinal surgery patients(CHRISTOPHER A. BARTLETT, 2017).

Background of the Case:

The RoboTech Company started its operations by targeting the aviation industry and was a strong player in 2016 and 2017. The company used its aviation technology to gain maximum advantage in order to develop the market themselves. However, the company lost its value due to intense competition and the development of similar technological products by competitors at reduced rates.

In 2008 and 2009, the company faced massive losses along with the entire aviation industry due to the economic downturn in the US. In addition to the economic crisis in 2009, the company faced losses as it did not obtain a copyright for its products which resulted in competitors and new US entrants replicating the company’s products and gaining competitive advantage by offering the same products to customers at reduced rates.

The company failed in securing long term sustainability of the business due to intense competition, failure to adopt the market trends, failure of upgrading its technology and failed to target the right market and segment as their products were costly. These factors contributed to the diluted market share of the company and resulted in significant losses.

In 2014, the company entered the pharmaceutical industry with the launch of a new robotic device providing aid in spinal injury. This initiative provided a competitive advantage to the company and allowed it to adopt the blue ocean strategy as previously the company used virtual images to deal with the patient’s spinal issues.

Problem Statement:

In September 2013, RoboTech successfully established a subsidiary in the USA; the focus in the region is based on the targeting of crucial and critical facilities, educating patients, and to train the orthopedic surgeons for spinal surgeries. The company had shown remarkable progress by early 2017, three years after its launch. Despite its success, the firm encounters significant problems. In this regard, specialized inquiries and transaction applications overburden the administrative center in Chicago; the effects therein were in the form of communication failure and postponements of an event that are developing in Chicago. Similar to this,due to the urgency of orders that are beyond the company’s production capacity in Singapore, some orders remained uncompleted during the months and delivered after their due dates of delivery which adversely impacted the company’s market position and brand perception. Another issue found in the company is related to the value based reimbursement practices that passed the purchase choices from doctors to administrations. These change in hospitals makes the procurement process more complex than before.

Additionally, in the organization, the workforce found that they were required to be present after their duty timings in order to handle more works than projected at the time of their joining in their job descriptions. This happens due to some complex, overwhelming and uncontrollable processes. In this case, the staff is allocated according to the plan in order to spend less budget(budget savings)that are associated with the lesser amounts of recurring surgical treatment with faster retrievals. Additionally, the boom of their sales through 2015 generates new strains for the enterprise. Pat Chen recommends that Hanlon should request the clients about the deposit of 30 percent of their ordering amount during the buying processes of some goods and devices to empower the company to earn profits in the form of interest payments from these deposits in the market. As a result, the company guarantees them their place in the production schedule.

External Analysis:

PESTLE Analysis:

The concept mentioned above offers scrutiny of six critical macro level factors that influence RoboTech and the choices that they make therein. First of all, there are political factors, which include the following ones: industry regulations, tax, political stability, and government policy. In essence, the US Legislature has approved the Patient Protection and Affordable Care Statute to warrant the provision of healthcare to every citizen. The organization therein focuses on how the Act affects the process of reimbursement. The second aspect is the economic environment, such as consumer spending habits and economic growth, which also have some impact on the business. The country under analysis presents an outstanding opening therein since the enterprise established that the nation conducts roughly 360,000 lumbar or thoracic processes annually.

Thirdly, there are numerous social-cultural transformations, such as population demographics and consumer trends, occurring in the nation, an aspect that also has an influence on the performance of the company. In brief, such developments enabled RoboTech to sell 25 units at $ 86,000 in its first year. The fourth component is technology, here: robotics, whereby the lucrative contracts of the firm became unprofitable once the competitors managed to design their technology. Consequently, they are also forced on other areas, such as spinal surgery, which is a sector where robotic surgery had not yet been advanced. The fifth issue consists of legal factors, including regulations, health and safety, and common law; thus, RoboTech is required to seek fast-track consent for a machine considerably equivalent to an approved one. Some other fundamentals therein are provisions for the use of healthcare IT systems and preventive care. Lastly, there are problems concerning the environment, such as procurement, ethical sourcing, and sustainable resources………….

 

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