RoboTech Storming into the US Market Case Solution

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.

Strength

• 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.

Weakness

• 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.

Opportunity

• 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.

Threat

• 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