Sunrise Medical Inc.s Wheelchair Products Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

A comparison of Invacare and Quickie:

Wheelchairs made by Quickie has competed in one of the most inventive market of the industry that is ultralight market that accounts for approximately 49% share in the market. The division has 24% share in the power and Pediatric division. In addition to this, the division was also engaged in the branding of another type of wheelchairs that is lightweight standard. This type of wheelchairs was dominated by another competitor in the market that is Invacare. In the lightweight division, the market share of Invacare was 57%, followed by Quickie that was 12%. On the whole, these segments will contribute more than 67% of the sales in the United States and the potential for the growth in the future as well. As mentioned in the case, the Quickie division of Sunrise Medical had a positive brand image, thus the division was able to make differentiation through innovation in the category of standard lightweight despite having minimal market share in comparison with Invacare. The division had also made a point of differentiation in the ultra light category as well as it is the leader in this category. Further, the company was also considering designing another category of wheelchairs that is Pediatric.

The division was making full attempts in being innovative in the market, and this had been shown while it introduced new power wheelchair models added with new and innovative functions. Up till yet, the market share of the division was hindered by the approval of FDI. Once it has been approved, it has a great potential to grow in terms of sales and market share that lead to extra profits and positive cash flows. The division had also made good relationships with its rehab distribution channel that did not offer any discount on their retail prices. This can be another edge to them as the rest of the two distribution channels were forced to make a drop in their prices. In addition to this, the main strength of the division was its low-cost composition in comparison with the rest of its rivals in the market. Because of the Quickie division, Sunrise Medical has become one of the highest gross margin earning companies in the United States.

These business advantages were basically because of Quickie's business procedure and the tactics they used: the first factor was the high quality followed by customized products that improved the overall structure of the cost and bring efficiency with it. Furthermore, it enhanced the cash flows of the company by bringing efficiency in the supply chain and made decrement in finished goods inventory. It likewise created extraordinary associations with its clients, developing an incredible customer service arrangement that in turn result in customer satisfaction. Innovation was upgraded through its quest for brilliance and efficiency in the overall system, including each territory of the organization in this manner making a situation that was extremely collaborative. All the employees of the company were additionally important for the future of the company, assisting keep up their morale and satisfaction level high through attractive pay rates and appealing incentives that in turn lead to upgraded profit and inevitably a great circle that would lead over to the variables expressed previously.

The main competitor of the company Invacare’s primary focus was on making improvements in the overall production procedures that in turn would result in a decrease in cost to a maximum level. In 1983, Invacare had tried to acquire Sunrise’s Quickie division, but it had not happened due to fact that the value system that has been made at Sunrise Medical was more attractive and thus more parallel to the business model of the division.

Conclusion and recommendations:

Corporate strategy by Sunrise Medical is more appealing than its competitor Invacare. Lightweight standard wheelchair segment has shown a great potential and growth prospects in the long run followed by ultralight and P&P. Fortunately, the competitor of the company Invacare has the edge in only one segment. This has shown an opportunity for the Guardian division of the company to make its entrance into the lightweight standard wheelchair market. Guardian division of the company would be able to steal market share from Invacare as well. As of now, the market share of Invacare is 57%, followed by Sunrise Medical’s 13%. This can be a great opportunity for Sunrise Medical to grab a share in the market from Invacare in two major categories of wheelchairs.

Another important factor to consider is that the customers of Quickie and its overall marketing strategy is focused more towards younger disabled people. On the other hand, the primary customer of the Guardian’s division is the elder individuals. This can enlighten the low market share of Quickie in the category of the lightweight standard as the main consumer of this product is the older individuals.............................

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