Irobot Corporation
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Executive Summary
iRobot Corporation designs, develops, and markets practical robots that tackle dull, dirty and dangerous tasks for consumers, governments and industry. iRobots two divisions, Home Robots and Government & Industrial Robots, have developed millions of cleaning robots and over a thousand tactical robots in use around the world today. iRobots successful line of home robots and combat-proven government and industrial robots have helped the company maintain a market-leader position in the emerging robotics industry.
The company wants to grow and expand to BRICS markets. In this export plan the feasibility and profitability of exporting to the Indian market is analysed. In the internal analysis companys leadership position and excellent product development, together with its strong financial performance is reflected. These microenvironmental factors advise that the company has enough competences, expertise, knowledge, human capital and financial resources in order to further internationalize.
In the external analysis it is shown that India can be an acceptable choice for export when all the macroenvironmetal criteria are taken into consideration. Porters 5 forces are looked into and their applicability to the case, from which it is concluded that investment in Indian robotics industry can be favorable when done carefully and knowingly. Both advantages and disadvantages of exporting to India are addressed and it is concluded that the advantages outweigh the disadvantages and although such expansion is not completely risk-free, the overall situation appears to be promising for the export future of Roombas to the Indian market.
Further an export advice is given based on the confrontation matrix, an entry strategy is chosen and an export marketing mix is developed which is suitable for the Indian market. The following critical issues are addressed: a product modification is advised in order to adjust Roomba for the tiled Indian floors, a price range is calculated, distribution channels are defined, promotion tools are chosen, as well as other additional considerations such as political-legal aspect and multicultural diversity at the work floor are anticipated.
In the final chapter the recommendation is given to start the export to India. The motivation for this choice is explained and some projections into the future are made. These include the market summary and current trends which are based on segmentation, targeting and positioning, as well as the anticipated break-even and overall current situation analysis and other important keys to success. Finally, an advice for contingency planning is given which can help control the implementation of the whole strategy and identify areas that need further investment and improvement.
Introduction
Nowadays it is almost impossible to imagine the modern society without all the technical devices which make our daily routine easy, pleasant and meaningful. Electronic appliances help us save lots of time for hobbies and leisure by simplifying our everyday tasks or in some cases by doing part of our domestic chores themselves. Robotic vacuum cleaners are some of those technical assistants who take the responsibility for cleaning our homes on themselves and thus provide us with extra time to enjoy ourselves.
In this export marketing plan I will analyze iRobot, a North American company producing robots. I have chosen this company because it is a successful international company which continues to grow and develop new products and technologies. More than 6 million home robots have been sold worldwide, with the award-winning iRobot Roomba floor vacuuming robot leading the charge.
iRobots government and industrial robots perform multiple missions – on the land and in the water. More than 4,500 combat-proven government and industrial robots have been delivered to military and civil defense forces worldwide, performing thousands of dangerous search, reconnaissance and bomb-disposal missions while protecting those in harms way. With two decades of leadership in the robot industry, iRobot remains committed to building robots that improve the quality of life and safety standards worldwide.
iRobot is an ambitious company which is performing very well within its industry and is planning to internationalize on the basis of its integrated strategy and taking advantage of its leading position in two nascent (emerging) markets: remote presence (B2B & B2G) and automated home maintenance (B2B & B2C).
The future is unimaginable without robots anymore. iRobot has a lot of potential and wants to grow and capture new markets. The race is only beginning and the stakes are potentially huge. The market for personal and service robots is about $3 billion now but is expected to reach $15 billion by 2015, according to market analysts like ABI Research. In 10 years or so, experts predict, sales of personal robots could surpass sales of industrial robots, now about $4.6 billion a year. iRobot has already reached a substantial market presence in most of the richest and better developed countries and is now looking forward to conquer developing markets in BRICS countries.
Company Description
History
iRobot was founded in 1990 when Massachusetts Institute of Technology roboticists Colin Angle and Helen Greiner teamed up with their professor Dr. Rodney Brooks with the vision of making practical robots a reality. iRobots corporate headquarters are located in Bedford, Mass. The company also has offices in Virginia, North Carolina, California, the United Kingdom, France, China and Hong Kong.
In 2010 iRobot generated approximately $401 million in revenue and employed more than 600 of the robot industrys top professionals, including mechanical, electrical and software engineers and related support staff. iRobot stock trades on the NASDAQ stock market under the ticker symbol IRBT.
Mission
“Build cool stuff, deliver great products, make money, have fun, change the world”.
Vision
“Lead the world in providing remote presence and automated home maintenance solutions which delight our customers and anticipate their needs while extending our technical leadership in the areas of robot autonomy, manipulation and platforms”.
Goals
Long-term goals: 1) Growing shareholder value 2) Growing EBITDA and consistently generating Operating Cash Flow 3) Building investor confidence
Middle-term goals: 1) mid