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DO YOU?
YUNUS EMRE SARIGÜL
iRobot: Finding the Right
Market Mix?
»Corporate Profile
» iRobot designs and builds robots that make a difference.
iRobot was founded in 1990 by Massachusetts ...
» iRobot also has long-term contractual agreement with U.S.
government to produce military robots.
» Its government and in...
ROBOTS THAT MAKE A DIFFERENCE
 Home Care Robots:
˃Cleaning: homes, pools, gutters
˃5 million sold worldwide
˃30 national retailers; international retai...
R&D
EVEN THE CATS CAN USE IT!
• iRobot’s promotion strategies are varied by product
group.
• BUT they don’t use TV or radio advertising for none of
thei...
• Another branding strategy is education.
• They recognized that fewer American children go to
science, technology, engine...
• They launched Starter Programs for the Advancement
of Robotics Knowledge to increase the interest for
science and techno...
• Also they started annual National Robotics Week
program to educate public about the impact of
robotics in society.
SWOT Analysis
Strengths
• Core competencies:
design, develop, market robots
•Innovative thanks to large R&D budget
• Exist...
 The long-term success in the consumer market would require
iRobot to develop more “blue oceans.”?
 Did it make sense fo...
 They should continue to produce both for consumer
and military sector, because they get most of the R&D
resource from go...
IRobot Case Finding the Right Market Mix
IRobot Case Finding the Right Market Mix
IRobot Case Finding the Right Market Mix
IRobot Case Finding the Right Market Mix
IRobot Case Finding the Right Market Mix
IRobot Case Finding the Right Market Mix
IRobot Case Finding the Right Market Mix
IRobot Case Finding the Right Market Mix
IRobot Case Finding the Right Market Mix
IRobot Case Finding the Right Market Mix
IRobot Case Finding the Right Market Mix
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Strategic Management and Business policy course case 13 IRobot Case Finding the Right Market Mix

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IRobot Case Finding the Right Market Mix

  1. 1. DO YOU? YUNUS EMRE SARIGÜL iRobot: Finding the Right Market Mix?
  2. 2. »Corporate Profile » iRobot designs and builds robots that make a difference. iRobot was founded in 1990 by Massachusetts Institute of Technology robotics with the vision of making practical robots a reality. » iRobot is among the first companies to introduce robotic technology into the consumer market. Home care robots have been its most successful products, with over 5 million units sold worldwide and accounting for over half of its total annual revenue. » The company offers consumer products, such as floor vacuuming robots, floor washing robots, pool cleaning robots,.
  3. 3. » iRobot also has long-term contractual agreement with U.S. government to produce military robots. » Its government and industrial products include the 510 PackBot small, unmanned ground robots; and the 310 small unmanned ground vehicle (SUGV) and 320 SUGV multi-purpose ground robots that perform in battlefield and bomb disposal. » The company also provides 1Ka Seaglider, an underwater vehicle designed for oceanic missions to measure temperature, salinity, depth-averaged current, and other data for scientific and military planners. » It sells its robots through chain stores and other national retailers, as well as through on-line stores like Amazon ,Wall-mart and the U.S. Military.
  4. 4. ROBOTS THAT MAKE A DIFFERENCE
  5. 5.  Home Care Robots: ˃Cleaning: homes, pools, gutters ˃5 million sold worldwide ˃30 national retailers; international retailers ˃55% of revenues  Government and Industrial Robots: ˃Ground and maritime unmanned vehicles ˃Divisions of U.S. military ˃46% of revenues 46% 55% 4% Revenues Government Contracts Home Robots Other REVENUES
  6. 6. R&D
  7. 7. EVEN THE CATS CAN USE IT!
  8. 8. • iRobot’s promotion strategies are varied by product group. • BUT they don’t use TV or radio advertising for none of their products. • Defense products are only for U.S. government so promotion is not necessary. • For consumer market they use social media to promote support services and brand recognition.
  9. 9. • Another branding strategy is education. • They recognized that fewer American children go to science, technology, engineering, math areas.
  10. 10. • They launched Starter Programs for the Advancement of Robotics Knowledge to increase the interest for science and technology among the students from elementary school to university.
  11. 11. • Also they started annual National Robotics Week program to educate public about the impact of robotics in society.
  12. 12. SWOT Analysis Strengths • Core competencies: design, develop, market robots •Innovative thanks to large R&D budget • Existing alliances • Healthy financial positioning • Government contracts •Intellectual property Weaknesses • Limited visibility • Patents expiring in 2019 • Dependent on 3rd party suppliers, manufacturers • Government dependency (contracts, R&D funding) • Sensitive to economic climate (recession in 2008 to 3rd Q 2009 Opportunities • Expand marketing efforts • Entry into new markets • Product expansion • Lower-tiered / priced goods • International presence Threats • Competitors have more money and knowledge in consumer space • Product substitution (from blue ocean to red ocean) • Reduced government spending • Break-up / non-renewing alliances • Employees leaving
  13. 13.  The long-term success in the consumer market would require iRobot to develop more “blue oceans.”?  Did it make sense for iRobot to continue to develop new consumer products or would it be better off focusing on the military and aerospace marketplace?
  14. 14.  They should continue to produce both for consumer and military sector, because they get most of the R&D resource from government.  They need to be innovative so that they could create blue oceans to lead consumer market with new, improved, innovative and differenciated products.
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Strategic Management and Business policy course case 13 IRobot Case Finding the Right Market Mix

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