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RoboTech Storming into the US Market Case Solution

Solution Id Length Case Author Case Publisher
2746 1891 Words (8 Pages) Christopher A. Bartlett, Rachel Gordon, John Lafkas Harvard Business School : 918501
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The case of RoboTech highlights the challenges and issues which are being faced by the CEO of the company, which is a small robotic company based in Singapore. Due to market competitiveness, the company made the decision to diversify itself by leveraging its core robotic capabilities into the new market; medical devices. The company successfully launched its innovative product into a very much new and unfamiliar market which is already equipped with serious competition and high technology. Initially, Rotech's struggles were associated with product supply management and customer relationship along with the complex regulatory pressures and reimbursement rates. Although the U.S. entry was successful for the company, however, the case unfolds those strategic pressures which resulted from unanticipated measures that the company struggled to address due to lacking resources, experiences and capabilities. The overall cases illustrate the journey of CEO Chen, who, with her innovative strategies and risk-taking abilities, successfully made a strong position in the market. However, due to complex competition and rapid technological advancement, she is having double thoughts as the next step comes with high additional debt.

Following questions are answered in this case study solution

  1. Conduct a SWOT analysis for Robotech in 2017.

  2. Apply Porter's Five Forces framework to Robotech as it moves from 2017 and beyond.

  3. Over the years since Robotech was founded, the company has developed a range of dynamic capabilities. Discuss the dynamic capabilities already developed, and those that Robotech should seek to develop in the future.

  4. Using examples from the Robotech case, discuss the differences between planned and emergent strategy. How did planned strategy formulation differ in the implementation stage? What were the reasons for these differences?

  5. Discuss the leadership style of CEO Pat Chen. What leadership traits and capabilities has she demonstrated since founding the company? What additional skills and capabilities would you recommend she develop as Robotech faces the future?

Case Analysis for RoboTech Storming into the US Market

1. Conduct a SWOT analysis for Robotech in 2017.

SWOT Analysis of RoboTech 

Following are a few points of SWOT which have been identified after evaluating the case critically.

  • RoboTech is a dominant player in the market and enjoys positive financial results in terms of high sale growth and returns.

  • RoboTech also has a strong technological capability which allows the company to earn a competitive edge over others.

  • Entering the U.S. market would give RoboTech a first-mover advantage in robotics for spinal surgery.

  • As the company prioritizes its focus on innovation, hence, it helps to maintain its leadership in the market.

  • Due to stalled industrial sales, high R & D investments and falling prices, RoboTech earnings are being affected.

  • Chicago office happens to be subjugated due to sales requests and technical inquiries. This would be categorized as the company's weakness as it resulted in long delays and embarrassing communication breakdowns.

  • Questions regarding the security of income have been arising from creditors and family members.

  • Financial pressures due to product expansion, R & D investment, debt repayment programs etc.

  • As the company had success in the U.S. market, thereby, the company has an opportunity to expand its income stream by entering different emerging markets.

  • As a shift can be seen in consumer lifestyles, therefore RoboTech has a chance to focus on ecological innovation and consider it as a viable business opportunity.

  • Since its competitors are highly engaged in diversification, therefore, now is a good time that RoboTech exploits this opportunity which ultimately helps in increasing its profits.

  • Stryker is a strong competitor as it already holds a strong position in spinal injury, and from speculations, it can be estimated that it might have planned to build the robotic spinal surgical device.

  • Due to strong competition, RoboTech might face high competition along with strong customer relationships, expanded sales forces and diverse product lines.

2. Apply Porter's Five Forces framework to RoboTech as it moves from 2017 and beyond.

Industry Analysis
Porter Five Forces

1. The threat of New Entrants

From the case, we can predict that new entrants have the potential to diversify their products/services; thereby, they might shake the existing ones. Since the threat of new entrants is high, thereby, it is better for existing ones to maintain prices or expand their investments in order to discourage new entrants.

2. The threat of Product Substitute

Substitute always exists in direct or indirect form. When talking about direct substitutes, switch cost is not much issue for customers, hence making the threat of substitutes high in such cases. However, in the case of indirect substitutes, switching costs might get higher. Hence from the consumer's perspective, it would be difficult for them to switch.

3. Bargaining Power of Buyers

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