Marketing 576 – Fall 2016

Professor Shanna Bruer Hess

By Tamalika Ghosh

The 3D Printing Solutions Company

IntroductionWhat is 3D Printing - an additive process that builds objects one layer at a time from the bottom up. The right technology

depends on the materials, aesthetics, mechanical properties and performance you require.

• Car manufacturers • Doctors• Dentists• Prosthetics• Aircraft Manufacturers

• Aerospace Companies

• Prop Makers• Product Designers• Architects• Students

• Design Entrepreneurs• Engineers

• Drone Enthusiasts• Show Makers• Consumer Product Makers

Pros• Create complex designs• Speed & ease of prototyping• Customize each item• No need for tools & moulds• Less wastage and just in time inventoryCons

• High cost for large production runs• Lack of speed for mass production• Limited material options• Limited strength & endurance• Intellectual property right concerns

Who Uses 3D Printing

Company History• 1989: Stratasys incorporated by S. Scott Crump & Lisa H. Crump in Minneapolis

• 1989:Scott Crump was an engineer who invented ‘Fused Deposition Modelling (FDM) technology and got it patented

• 1994: Stratasys goes public in 1994

• 2002: First 3D printer under $30,000 introduced

• 2007: World's first multi-material 3D Printer by Objet

• 2008: Stratasys launches the first 3D printer for production

• 2012: World’s first desktop 3D printer with seven materials by Objet – Objet acquired by Stratasys

• 2013: Stratasys purchases MakerBot

• 2014: Stratasys introduces the first-ever color and multi-material 3D printer & acquires GrabCAD

• 2015: Stratasys Direct Manufacturing, combines RedEye, Harvest Technologies and Solid Concepts. Acquires Econolyst and

creates Stratasys Strategic Consulting

• 2016: Reinvents 3D Printing with the latest addition of J750 3D Printer to the PolyJet portfolio – the full color, multi-

material printer

J750 The Game Changer

Problem/Opportunity

• Equipment cost, limited material availability and post processing requirements.

• Lack of in-house additive manufacturing resources for customers and high manufacturing cost.

• Lack of expertise and/or training among workforce/employees of customers.

• Longer production timeline and limited recyclability.

• Lack of formal standards and limited repeatability.

• Software development and data storage limitations.

• Risk of litigation and legal implication related to unintentional copyright infringement.

SWOT Analysis

S W

OT

Industry Leader and Pioneer of 3D

Printing Innovation

2015 a year of turmoil & financial loss owing to M&A and low unit

sales

Positive CAGR prediction for industry

and Scope for introducing Faster &

Cheaper Printers

Entry of multi-industry Global Competitors (HP,

GE)

Stakeholder• Management - new key executive appointments ( Ilan Levin, Tim Bohling)

• Consumers – diverse user with numerous application of the technology for innovation and

advancement

• Resellers & Alliance Partners – key role in connecting the user with Stratasys

• Competitors – both small start-up companies as well as multi-industry global giants are entering the

market

• Employees – recent reorganization & operational efficiency initiatives involved layoffs as well as

expansion in R&D division

• Investor – past couple of years financial performance has weaken the investors trust on the company

• 3D Printing Industry – being the top contributor in industry market share, plays vital role in shaping

the growing industry

Root Cause of Problem• Mismatch in the potential customer demand forecast and the actual unit sales, long sales cycle

• Processing time of the 3D printers hinders economies of scale

• Lack of expertise and trained personnel

• Consumer leadership approach of technology implementation

• Expiring patents making way for new entrants

• Reorganization and a series of write downs against subsidiaries (MakerBot)

• External growth strategy demanding high level of business integration and realignments

• High operating cost and R&D investments

• Big brands like HP and GE entering the market

Solution

Option Pros ConsInvest in industry demand analysis

No risk of demand-supply mismatch and revenue loss

3D printing is an evolving market, so accurate consumer analysis is difficult

Expand externally by merger & acquisitions

Quick increase in global market share and eliminate competitors

Increased risk of acquiring obsolete intangible assets and added cost

Rebranding, reorganization and Innovation

Long term growth and re-establish the brand as market leaders eliminating threats from competitors

Strategic implementation involves high risk

Elements Favouring Stratasys• Industry forecast of positive growth opportunity. 2016 Wohlers report indicates for the second year in

a row, the 3D printing industry has grown by $1 billion to a total of $5,165 billion

• Opportunity to capitalize on the business drivers like – cost effective customization, optimized supply

chain, reduced raw material consumption and spare part inventory

• First mover in the industry and established player with a global presence

• Already successfully partnering with top core industry leaders, researchers , educators to encourage

innovation and its practical implementation

Proposed Solution & Implementation• Increase product and technology implementation awareness through consulting services, training,

workshops via partnering channels (educators, researchers, reseller, etc.)

• Relaunching brand image, reorganizing business and developing comprehensive ecosystem

• Innovate to reduce the existing barriers of high cost and speed and enter mass production

• Focusing on the personalized consumer market of desktop 3D printing and develop robust sales

and marketing team

• Obtain operational efficiency, improve financial performance and regain investor confidence in

business

News

New York Fashion Week: Stratasys and threeASFOUR Unveil 3D Printed OSCILLATION Dress as Part of Quantum Vibrations Collection |Sep 15, 2016

MakerBot Launches New 3D Printing Solutions for Professionals and Educators |Sep 20, 2016

Schneider Electric's 'Factory of the Future' Strategy Incorporates Stratasys 3D Printing to Improve Manufacturing Efficiencies and Accelerate Time to Market |Sep 28, 2016

Thank You!