The Orthopedic Motor Market Minnesota Micromotors, Inc. & Brushless Motor Technology Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

PROBLEM STATEMENT:

“Organization has experienced a decline in their performance recently due to the recent market share loss. They are now concerned, how can they sustain their market share for growing efficiently.”

SITUATION ANALYSIS:

Company:

 Minnesota Micromotors Inc. manufactures direct current (BLDC) and brushless motors that are used in orthopedic devices medical equipments.

 The motors manufactured by the organization are used by surgeons in medical treatments like reconstructive surgeries, trauma surgeries, large bone narrow surgeries and medical treatments for athletes.

 Minnesota Micromotors Inc. differentiates itself by providing efficient, reliable and durable products to the market.

 The organization strongly believes in delivering a higher level of value to its customers through their products and services.

 The division has several opportunities in the long-run as it efficiently caters to the high-end orthopedic and medical devices markets.

Customers:

 The segment A customer of the company demands higher levels of customization to the devices, which in result increases the level of support by the company in order to place a premium on the motors power-to-size ratio. They generate 33% of their revenue through this segment by catering to a 19% of this segment’s market.

 For efficiently catering to their customers that lie in the Segment B, they majorly focus not only on the thermal resistance performance of the motors but they also provide a higher value to the customers by delivering technical knowledge through their sales representatives. MM generates 8% of its total revenues from this segment and holds 4% of the market share of this specific segment.

 Segment C of the market requires efficient and superior motor performance with attributes of effective thermal resistance of the motor and proficient power-to-size ratio of the motor.This segment is the least price sensitive as compared to other segmented customers of the company; helping the company in generating 7% of their company’s revenues through catering to this segment.

he market share of the company in this segment is 4%.

 The most price-sensitive customers of the company lie in Segment D. The OEMs in this segment prefer to sell their medical devices in bulks to the GPOs. They provide medical devices to their individual members on comparatively significant cheaper rates. A major part of their dollar inflow comes from this segment, as it efficiently generates 22.8% of their total revenues while catering to a 7% of the total segment in the market.

 The customers who place their order of smaller volumes and frequency to the distributors are also quite price-sensitive.These customers usually make their purchases from the distributor’s catalog and demanded a higher level of technical information, which they expect their vendors will be able to provide.Segment accounts for 29% of Minnesota Micromotors’ revenues and the market share of the company in this segment is 11%.

Competitors:

 Several competitors of the company that offer their motors, and lie in Segment A have a collective market share of 81%. The competitors of the company in the same segment generate a total a dollar amount $17,302,500.

 In Segment B of the industry, the competitors of the company have a market share of 96% communally. The revenue generated by the competitors in this segment of the market is $22,848,416

 96% of the market share in Segment C under the hold of all the competitors exists in this specific segment of the industry. Collectively, these competitors are responsible for generating an amount of $21,025,248 from the total generations of the industry.
 $36,735,392 is generated in the Segment D of the industry by the competitors with the support of making sales to 93% of the market of the specific segment.

 Small-volume customers make their purchases mostly from the distributors and this brings revenues of $26,942,000. The competitors of Minnesota Micrometers Inc. are serving to an adequate market share of 89% in this small-frequency segment

Context:

 Minnesota Micromotors Inc.’s operations are affected by the political regulations imposed on their operations by the government of the territory. The stated minimum wage rates influence the expenditures of the company.........................

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