1. Marketing 576 – Fall 2016
Professor Shanna Bruer Hess
By Tamalika Ghosh
The 3D Printing Solutions Company
2. Introduction
What is 3D Printing - an additive process that builds objects one layer at a time from the bottom up. The right technology
depends on the materials, aesthetics, mechanical properties and performance you require.
• Car manufacturers
• Doctors
• Dentists
• Prosthetics
• Aircraft Manufacturers
• Aerospace Companies
• Prop Makers
• Product Designers
• Architects
• Students
• Design Entrepreneurs
• Engineers
• Drone Enthusiasts
• Show Makers
• Consumer Product Makers
Pros
• Create complex designs
• Speed & ease of prototyping
• Customize each item
• No need for tools & moulds
• Less wastage and just in time inventory
Cons
• High cost for large production runs
• Lack of speed for mass production
• Limited material options
• Limited strength & endurance
• Intellectual property right concerns
Who Uses 3D Printing
3. Company History
• 1989: Stratasys incorporated by S. Scott Crump & Lisa H. Crump in Minneapolis
• 1989:Scott Crump was an engineer who invented ‘Fused Deposition Modelling (FDM) technology and got it patented
• 1994: Stratasys goes public in 1994
• 2002: First 3D printer under $30,000 introduced
• 2007: World's first multi-material 3D Printer by Objet
• 2008: Stratasys launches the first 3D printer for production
• 2012: World’s first desktop 3D printer with seven materials by Objet – Objet acquired by Stratasys
• 2013: Stratasys purchases MakerBot
• 2014: Stratasys introduces the first-ever color and multi-material 3D printer & acquires GrabCAD
• 2015: Stratasys Direct Manufacturing, combines RedEye, Harvest Technologies and Solid Concepts. Acquires Econolyst and
creates Stratasys Strategic Consulting
• 2016: Reinvents 3D Printing with the latest addition of J750 3D Printer to the PolyJet portfolio – the full color, multi-
material printer
J750 The Game Changer
4. Problem/Opportunity
• Equipment cost, limited material availability and post processing requirements.
• Lack of in-house additive manufacturing resources for customers and high manufacturing cost.
• Lack of expertise and/or training among workforce/employees of customers.
• Longer production timeline and limited recyclability.
• Lack of formal standards and limited repeatability.
• Software development and data storage limitations.
• Risk of litigation and legal implication related to unintentional copyright infringement.
5. SWOT Analysis
S W
OT
Industry Leader and
Pioneer of 3D
Printing Innovation
2015 a year of turmoil
& financial loss owing
to M&A and low unit
sales
Positive CAGR
prediction for industry
and Scope for
introducing Faster &
Cheaper Printers
Entry of multi-industry
Global Competitors (HP,
GE)
6. Stakeholder
• Management - new key executive appointments ( Ilan Levin, Tim Bohling)
• Consumers – diverse user with numerous application of the technology for innovation and
advancement
• Resellers & Alliance Partners – key role in connecting the user with Stratasys
• Competitors – both small start-up companies as well as multi-industry global giants are entering the
market
• Employees – recent reorganization & operational efficiency initiatives involved layoffs as well as
expansion in R&D division
• Investor – past couple of years financial performance has weaken the investors trust on the company
• 3D Printing Industry – being the top contributor in industry market share, plays vital role in shaping
the growing industry
7. Root Cause of Problem
• Mismatch in the potential customer demand forecast and the actual unit sales, long sales cycle
• Processing time of the 3D printers hinders economies of scale
• Lack of expertise and trained personnel
• Consumer leadership approach of technology implementation
• Expiring patents making way for new entrants
• Reorganization and a series of write downs against subsidiaries (MakerBot)
• External growth strategy demanding high level of business integration and realignments
• High operating cost and R&D investments
• Big brands like HP and GE entering the market
8. Solution
Option Pros Cons
Invest in industry demand
analysis
No risk of demand-supply mismatch and
revenue loss
3D printing is an evolving
market, so accurate
consumer analysis is
difficult
Expand externally by
merger & acquisitions
Quick increase in global market share and
eliminate competitors
Increased risk of acquiring
obsolete intangible assets
and added cost
Rebranding, reorganization
and Innovation
Long term growth and re-establish the
brand as market leaders eliminating
threats from competitors
Strategic implementation
involves high risk
9. Elements Favouring Stratasys
• Industry forecast of positive growth opportunity. 2016 Wohlers report indicates for the second year in
a row, the 3D printing industry has grown by $1 billion to a total of $5,165 billion
• Opportunity to capitalize on the business drivers like – cost effective customization, optimized supply
chain, reduced raw material consumption and spare part inventory
• First mover in the industry and established player with a global presence
• Already successfully partnering with top core industry leaders, researchers , educators to encourage
innovation and its practical implementation
10. Proposed Solution & Implementation
• Increase product and technology implementation awareness through consulting services, training,
workshops via partnering channels (educators, researchers, reseller, etc.)
• Relaunching brand image, reorganizing business and developing comprehensive ecosystem
• Innovate to reduce the existing barriers of high cost and speed and enter mass production
• Focusing on the personalized consumer market of desktop 3D printing and develop robust sales
and marketing team
• Obtain operational efficiency, improve financial performance and regain investor confidence in
business
11. News
New York Fashion Week: Stratasys and threeASFOUR Unveil 3D Printed
OSCILLATION Dress as Part of Quantum Vibrations Collection |Sep 15, 2016
MakerBot Launches New 3D Printing Solutions for
Professionals and Educators |Sep 20, 2016
Schneider Electric's 'Factory of the Future' Strategy Incorporates
Stratasys 3D Printing to Improve Manufacturing Efficiencies and
Accelerate Time to Market |Sep 28, 2016
