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
Amazon.com auction - $100,000 bids
Visionaries
Amazon.com - 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
Amazon.com, 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: