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Charles Chen Miro Curac Antonio Gomez Dwight Huang Len Tiso

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1 Charles Chen Miro Curac Antonio Gomez Dwight Huang Len Tiso
Segway Final Presentation “Can Segway Enter the Tornado?” Management 266A Product Strategy in the Digital Economy Charles Chen Miro Curac Antonio Gomez Dwight Huang Len Tiso

2 Presentation Overview
Introduction Strategic Assessment: Moore Framework Stakeholders Critical Issues Analysis Bayesian Network Analysis Strategic Implications and Recommendations

3 Introduction Motor-scooter like device Powered by electric motors
Movement by shifting weight, turning wrist Turning radius of zero Designed by inventor Dean Kamen (150 patents)

4 3 Product Models e series - Expeditor (cargo)
i series - Industrial (business) p series - Personal (consumer) Commercial models faster, longer range, heavier Max speed mph Maximum distance miles (single charge) Device weighs lbs.

5 Strategic Assessment: Crossing the Chasm
Segway in infancy stage of TALC Discontinuous innovation Substitute for walking Value proposition (business and consumer) Technology enthusiasts auction - $100,000 bids Visionaries - first customer

6 Strategic Assessment: In the Bowling Alley
Whole product solutions to niche segments Pick on someone your own size Enlist the support of the economic buyer Government services Post office, police departments Businesses with warehouses, Michelin, GE Plastics

7 Strategic Assessment: Inside the Tornado
Hypergrowth stage years away Consumers are ultimate target market Production capacity 40,000 units/month Need to lower price point from $3,000/unit Media coverage is a double edged sword Builds awareness Overhype sets unrealistic expectations (e.g. artificial intelligence industry)

8 Stakeholders Consumers Businesses Government Services
Regulatory Authorities Environmental Interests Electric Industry Petroleum Industry Manufacturing Partners

9 Stakeholders: Consumers & Businesses

10 Stakeholders: Government and Regulation

11 Stakeholders: Environmental and Electric Industries

12 Stakeholders: Petroleum and Manufacturing

13 Critical Issues Analysis
Highlight key issue for each area Political - Regulatory approval Behavioral - Consumer utility Economic - Segmentation Social - Fad or revolution? Technological - Segway imitators

14 Bayesian Network

15 Bayesian Network Analysis
Base scenario Tornado viability = 12.10% Reasons for low percentage Harder to enter Tornado than Bowling Alley Regulatory hurdles Consumer value key Ability to supply Competitive threats

16 Sensitivity Analysis: Primary Branch Nodes

17 Sensitivity Analysis: Regulatory Issues

18 Sensitivity Analysis: Customer Value

19 Sensitivity Analysis: Ability to Supply

20 Sensitivity Analysis: Competitive Threats

21 Market Valuation (all units in ‘000s)

22 Sensitivity Analysis - Expected Valuation
Preliminary valuation = $2.98 billion

23 Strategic Implications and Recommendations
Prioritize regulatory approval efforts Municipal approval is key Beta testing with government services Consider international consumer market first Less automobile oriented urban infrastructure, but less Segway friendly infrastructure More receptive to cheaper transportation technology (higher customer value)

24 Strategic Implications and Recommendations
Continue expanding production capacity Hypergrowth demands rapid scalability Continue conservative patent protection policy Barrier to entry in a new market Alternative electric transportation threat

25 The Future?

26 Segway Videos Link:

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