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Sunrise Medical Incs Wheelchair Products Case Solution

Solution Id Length Case Author Case Publisher
2217 675 Words (4 Pages) Anita M. McGahan Harvard Business School : 794069
This solution includes: A Word File A Word File

Sunrise sold wheelchairs, crutches, and other products used in the rehabilitation and recovery phases of patient care. Sunrise Medical Inc was a company that produced and sold wheelchairs, walkers, patient aids, crutches, and other products related to patient recovery and rehabilitation. A core component of the company’s organizational culture was the total divisional autonomy it offered. The CEO of Sunrise Richard H. Chandler faced a challenging situation when the Guardian Products division plotted to launch a lightweight standard wheelchair, which would offer competition to the wheelchairs sold by the corporation’s most profitable Quickie Designs division. He needs to decide whether intervention is the need of the hour or a violation of the company’s culture. 

Following questions are answered in this case study solution

  1. Introduction

  2. Analysis 

  3. Recommendation

Case Analysis for Sunrise Medical Incs Wheelchair Products Case Solution

2. Analysis 

Sunrise was a market leader in terms of product innovation. The company kept its employees motivated and satisfied by conducting self-directive and incentive-based programs. The “Pursuit of Excellence” program is a prime example, because of which the turnover rate tumbled from 25% to just 8%. This environment made the staff more productive, skillful, and knowledgeable, cementing Sunrise’s reputation for superior customer service. 15% of Sunrise workers have disabled themselves, an indication of the corporation’s appreciation for diversity and deep understanding of what products and services its target customers desired. The business was also able to manufacture its products in shorter periods of time as compared to its main competitors Invacare and Everest and Jennings. Shorter time cycles allowed more transactions to be completed.  

Sunrise’s divisional structure in the form of Quickie and Guardian leaves the company highly fragmented, making business dealings for their retailers highly inconvenient due to the unavailability of a one-stop-shop. Moreover, it is noteworthy that Quickie Designs Division’s marketing strategy is focused on young disabled people that require wheelchairs, whereas Guardian Products Division targets the older population. Hence, the Guardian division is more profitable because the demand of wheelchairs for the older population is substantially higher than the younger population.    

It is projected that the lightweight standard wheelchair market will witness a healthy 15% growth rate in the coming years, which is an opportunity for the Guardian branch to improve its profitability by providing a form of in-demand wheelchairs that the Quickie division doesn’t supply.

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