caseism

Sunrise Medical, Inc.’S Wheelchair Products Case Solution & Answer

Sunrise Medical, Inc.’S Wheelchair Products Case Solution

Introduction

In 1983,Dick Chandler established the sunrise Medical Company.He came up with this idea after writing novel and visiting different places with his family. The company was a success and had 17 divisions within three years (1986). The company was started with the production of wheelchairs and other related products. The company ensured growth through acquisition strategies that were financed through partial public offering. Each company it acquired was small private nursing and home care manufacturing products that did not have enough resources to maintain the products and expertise. So, Chandler started to acquire small and privately owned businesses in order to grow. In addition to that, after some time the company also started merger and acquisition, meanwhile which it acquired Guardian and motion designs. Later on, the company was renamed as Quickie. By the end of fiscal year 1993; the company had 26% revenues.

Further, the company came up with the power wheelchair in 1990 and Guardian came up with lightweight standard wheelchair. In 1999, the founder: Chandler resigned the company, after which it was titled as a private company with the value of $250 million value. The major objective of the company is to make continuous efforts to improve and facilitate those who use wheelchair because having an effortless wheelchair can make their lives easy. The mission of the company was to improve the people’s lives’ quality through innovation and maintaining high quality products. The manufacturing of the company is in the US, Mexico, Germany, the United Kingdom and Spain. Sunrise has its distribution in more than ninety countries with almost 4,400 employees.

Problem Statement

The Chief Executive Officer of the Sunrise Medical Company had to decide about the decision related to the company’s two divisions. The Guardian division of the company was planning to launch a new product, i.e. “Standard light-weight wheelchair”. The key objective behind the introduction of the new product was to support the existing product portfolio of the company, i.e. crutches, walkers and other medical aids for patients. But the key problem, associated with the launch of light weight wheelchair was that it will come in competition with a similar product line of other division i.e. Sunrise, Quickie. The company’s CEO was not willing to take any decision in favor or against the introduction of new product line. Further, the decentralized organizational culture was followed, whereby the divisions were given complete an authority to take key decisions and because of such culture. The CEO did not want to interrupt the company’s overall model.

Internal Analysis

Internal analysis is the analysis of the company’s internal capacity. Internal analysis is an analysis of the internal environment of the company in order to analyze its resources, to find its competitive advantages through finding the competencies. Actually the internal analysis help us to find the strengths, weaknesses of the company and what opportunities company can explore and what are the potential threats company have. There are different frameworks to analyze the internal environment of the company that have different purpose and provide different results (Mirkovic, 2021). Here in this case, we will conduct an internal analysis through SWOT analysis. SWOT stands for Strengths, Weakness, Opportunities, and Threats. SWOT is a framework that is used to analyze the company’s competitive positions and to develop strategic planning for the company. It analyzes the potential future opportunities for the company in order to explore and do their strategic planning. SWOT Analysis is done on the basis of real time situations and data available for the company in order to keep it reliable (KENTON, 2021). SWOT Analysis for Sunrise Medical is given below:

SWOT Analysis for Sunrise Medical

Strengths of SMC

  • Capabilities and Resources:

Sunrise wheelchair is a growing company which has sufficient  resources and expertise to manufacture the competitive products in the industry.Its resources and capabilities are strength for the company because Sunrise acquires other firms on the basis of these capabilities. The resources includes the past experience, the physical resources for manufacturing and financial strengths and strategic resources.

  • Successful records:

Sunrise had the positive image in the industry for launching new and successful products in the market. Sunrise was also enjoying the success due to the fact that it focuses on the consumer’s feasibility and what they want and the company always puts its customers first and works on the product development. Sunrise has analyzed different strategies and has tested different products, which always enable the company tocome up with successful products and strategies.

  • Leading the domestic market

Sunrise is the leading company in its domestic market. The competition in the domestic market is high, whereas the domestic wheelchair market is considered as the strength as well as the hindrance for the company. Because the domestic market does not demand any innovation and without innovation in the products; the company cannot capture the highest ranking in the industry. This in other case is reducing the capacity of innovation in the company.

  • Reserved copyrights

Sunrise has a number of copyright intellectual property due to high investment in the innovative products. This also helps the company in competing against its competitors.

  • Brand Awareness

Sunrise medical is the growing company and the products of the company are well known among its customers. Sunrise is a well-known product and has brand recognition. Whereas it is being said that the brand recognition is essential to attract the new customers.

  • Quality products

Sunrise medical is focused on the quality and safety of the products. The management of the company focus on the customer’s feasibility and safety. The products of Sunrise are of best quality and the huge loyal customer base proves the best quality and servicesbeing provided by Sunrise.

Weakness of SMC

  • Low profitability

Sunrise is a growing company but it’s been few years that the profit margins of the company was low. The low profitability can affect the future investment plans of the company the revenues are pretty good but the profit margins are coming down and this will lead to lower the investment funds. Profit margins was decreasing because the cost of the products was increasing.

  • Business model is easy to replicate

The Business model of the company is very easy and competitors in the industry can easily replicate the business model that sunrise medical is using………………………..

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