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The balance was generated from customers that ordered in smaller volumes from distributors. Customers placing large-volume orders were roughly divided into four subsegments (A–D), distinguishable by their purchasing behavior and the relative importance they assigned to specific product features. Segment A placed a premium on the motor’s power-to-size ratio and generally required a high level of sales support due to the requirement for customization. MM
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ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL PUBLISHING
Simulation Foreground Reading—The Business-to-Business Orthopedic Motor Market
generated approximately 33% of its dollar revenue from this segment (see Exhibits 1A and 1B) and held a 19% share of the market in this segment.
Segment B placed a premium on the motor’s thermal resistance performance and also highly valued the market and technical knowledge of a manufacturer’s sales representatives. This segment represented just under 8% of the company’s revenue and MM’s market share in this segment was 4%.
A high thermal resistance was the leading feature touted by device manufacturers in this …show more content…
You will also need to determine how MM will meet the needs of the market and its intended customer base. In doing so, you should understand how market segments value MM’s product offering, and you will need to decide whether and how MM’s positioning relative to segment needs and behaviors should change.
2 Sources used in the development of this reading include the following: Kalorama Information Industry Report, “OEM Contract
Manufacturing Medical Devices: World Markets, Vol II. Electronics,” October 2007; Frost & Sullivan Industry Report, “N.
American Direct Current and Universal Fractional Horsepowers / Motors Markets,” September 18, 2006; Freedonia Industry
Report, “Focus on Motors & Generators,” March 2008; Padmaraja Yedamalle, “Brushless DC Motor Fundamentals,” Microchip
Technology Application Note AN885; P. Andrada et al. “Power Losses in Outside-Spin Brushless D.C. Motors,” 2004 Conference
Paper; Jacques Essinger, “New Advances in Power Tool Technology,” Orthoworld, April 2007; Ted Severn, “How to Select a DC
Micromotor,” Medical Design News, December 2006; Orthopedic device data from Global Data’s Medical eTrack.
4
ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL
2
ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL PUBLISHING
Simulation Foreground Reading—The Business-to-Business Orthopedic Motor Market
generated approximately 33% of its dollar revenue from this segment (see Exhibits 1A and 1B) and held a 19% share of the market in this segment.
Segment B placed a premium on the motor’s thermal resistance performance and also highly valued the market and technical knowledge of a manufacturer’s sales representatives. This segment represented just under 8% of the company’s revenue and MM’s market share in this segment was 4%.
A high thermal resistance was the leading feature touted by device manufacturers in this …show more content…
You will also need to determine how MM will meet the needs of the market and its intended customer base. In doing so, you should understand how market segments value MM’s product offering, and you will need to decide whether and how MM’s positioning relative to segment needs and behaviors should change.
2 Sources used in the development of this reading include the following: Kalorama Information Industry Report, “OEM Contract
Manufacturing Medical Devices: World Markets, Vol II. Electronics,” October 2007; Frost & Sullivan Industry Report, “N.
American Direct Current and Universal Fractional Horsepowers / Motors Markets,” September 18, 2006; Freedonia Industry
Report, “Focus on Motors & Generators,” March 2008; Padmaraja Yedamalle, “Brushless DC Motor Fundamentals,” Microchip
Technology Application Note AN885; P. Andrada et al. “Power Losses in Outside-Spin Brushless D.C. Motors,” 2004 Conference
Paper; Jacques Essinger, “New Advances in Power Tool Technology,” Orthoworld, April 2007; Ted Severn, “How to Select a DC
Micromotor,” Medical Design News, December 2006; Orthopedic device data from Global Data’s Medical eTrack.
4
ONLINE SIMULATIONS | HARVARD BUSINESS SCHOOL