Value of Feasibility Analysis

Case Write Up

What Segway learned about the Value of Feasibility Analysis the hard way?

Part 1 Pros &Cons

Opportunity

Pros

 Segway is a whole new product with the innovative idea, it is bound to be quite attractive to customers.

 Segway, as a green product, producing a socially responsible, is an environmentally friendly mode of transportation. It can help reducing the air pollution problems in urban areas.

Cons

 Because of using the most advanced technology to manufacture Segway, the price is quite expensive.

 Some countries have restrictions on the use of Segway by law.

Resources

Cons

 Consumers need to return their Segway to the manufacturer for any servicing, due to the lack of a dealer network.

 The projected sales are not meeting forecasts that were set by Kamen in 2002 of 10,000 units per week.

Entrepreneur

Dean Kamen is a great innovator; he is good at design and innovative invention. However, he failed to do the marketing research before starting sell this produce. He did not anticipate that there is no potential demand for such a product.

Organization

Cons

 The organization ignored the practical problems.

 Failed to do the market research.

 Overestimated the expected demand for the product.

 Filed to design a suitable, viable product promoting plan.

Part 2a Key issues

 Customer Service: There were a few Segway dealers initially. Customers could not access to the product widely and they did not know where to get it serviced.

 Future Challenges: Think of the right development of their product to become an item fitting into people’s day-to-day life, increasing the practicality. The company also needs to overcome some related problem, such as insurance and rule of law.

Part 2b-- Answers to End of Case Questions

Question 1:

Answer:

Because they did not do the market research before they sell this product. The group only focuses on how much of a technological marvel their product is but ignoring the basic feasibility analysis. Thus, only based on the technological success and innovation,