Final Case Analysis: SENSACON Corporation: High Technology Evolves to High Volume

Your goal in this final assignment is to identify the main problem currently faced by the business, evaluate the gaps in the company's current strategy, and recommend methods to close those gaps. Your textbook and peer-reviewed journal articles will serve as the most appropriate sources for developing "best practice" solutions for the problem. Key questions to be considered and included in your analysis are: What are the company's vision and mission? What is the overall strategy for accomplishing the mission? Where are they now? Where do they want to go? How should they get there?

The analysis should include the following sections:

Background and mission/vision statement

This brief introduction should include the main issues faced by your organization or covered in the case, as well as the company's vision and mission statement. If vision and mission statements are not provided in the case, or if you organization does not currently have them, you should develop them for the company.

Problem definition

The main issues faced by the organization should be narrowed to the single most important issue needing immediate management attention

Analysis of the problem

Your analysis should be the heart of the paper. You should explain how you analyzed the problem leading to the recommendations you'll make in the final section of your paper. Each analysis will likely highlight a different area of marketing. Use your textbook as a reference.

Possible solutions

The solutions should tie directly back to the problem you stated in the beginning of the paper and the solutions should come directly and logically from your research and analysis.

Decisions

Choose a course of action from your possible solutions. What must the company do right away to alleviate the main problem?

CIVIL - SENSACION Corporation : High Technology Evolves to High Volume Shortly after receiving the consultant The SENSACION breakthrough came ADVICE SENSACION began development of a when the sensor was selected for use in an missionary sales effort to reach out to new automatic tire pressure monitor . Two vehicl customers where the su Success Of SENSACION manufacturers specified systems for all of technology could be translated to new business the SUVS they produced . The combined vol . At about this time Vehicle rollover problems , ume of the two companies was forecast to most attributed to Firestone tires on Ford reach over three million vehicles . With fou Sport Utility Vehicles were major headlines . sensors on each vehicle , the sensor volume The battle between the the corporate giants . would be over 12 million units SENSACION long regarded as inseparable . was creating had been selected to supply approximately alex throughout the industry . Among those 50 percent of this volume . The remaining waves was an inquiry by the Department of volume was divided up among three competi Transportation Regardless of whether the tires lors SENSACION monthly sales volume at the of the vehicles or the owners were eventually start of tire monitor production would exceed determined to be at fault ( or a combination of the most recent annual volumes experienced factors ) . industry pundits were asking for a by the company and was expected to reach system to warn the ( maintenance inattentive ) an annual rate of approximately six millio driver of low tire pressure . Manufacturers of units . Initial shipments were to begin in four SUVS had to find sources with the capabilities months SENSACION employees and inves to solve the tire pressure monitor problem . Lors were ecstatic These capabilities had to be not only in tech - To be sure . the SUV manufacturers nology . but also in the ability to support the did not select SENSACION automatically UV unit volume requirements and to work Competitors were entering the sensor market as with the culture of a mass production-oriented the potential profitability was was a very attractive customer - not something I something for which high - Ture SENSACION executives were aggressive technology companies are known . SUV manu - in the price to the SUV manufacturers as they facturers h acturers had to believe that SENSACION was wanted to establish a le leadership position in this capable of meeting the standar new market segment . Recognizing the newly Among other factors . SENSACION arrived competition . SENSACION had started management used publicity and corporate posi - devel elopment of the next generation offering lioning to establish its positioning in the market . SensorsUV Th le aggressive price to the man SENSACION pitched its technology to SUV facturers did not concern SENSACION as it was manufacturers demonstrating that the techno - believed that the experience curve combined logy satisfied the need of a low tire pressure with economies of scale in manufacturing warning to the vehicle driver . SENSACON . would create the necessary low cost position to along with other companies who proposed enable profits at the aggressive price solutions to the pressure monitoring problem had to go through a series of demonstrations One of Many Change and trials to prove the effect liveness of the product design . SENSACION had found its Tom Dan , and Amanda remembered a join " beachhead " pragmatist segment . The IDA meeting that had taken place about four your team believed that once the manufacturing and ago in the middle of the decision making quality problems associated with manufacturing process for the large automotive customer . in quantity tity were addressed SENSACON could They were discussing the company's major realize rapid increases in sales , as did the other turning point . They were at the chasm . Several competing manufacturers corporate and personal upheavals were on theare VII . SENSACION Corporation : High Technology Evolves to High Volume An additional channel was to be developed - new component i another level of decentralization . Eventuall It into Sensor SUV . While the ventually , technology of the component is not , by itself The SENSACION total offering included the new it is the first time it has been used in the training and deployment of service at the consumer level . As competition e personnel sensor market and SENSACION has modified ntered the component somewhat . The challenge Anker D. A . 3.32 - 33 3 the aftermarket a consumer positioning effort Should SENSACON manufacture this " new acessibility . 152 was deployed to attract customers to the " real " tire pressure system . Though the source ? component itself or purchase it from an outside Accomplishing innov 213 -21 core product did not change ( other than the directing right act changes that made it possible to mass - Defending the Market Position impediments and produce in . the marketing organization , at each transition through the adopter cate eitem , thus Sensor SUV is a profitable item thus there will obtaining right or gories evolved to meet different customer be imitators , either copycats trying to be the ACC . 360 ends and opportunities low cost producer or modifiers trying to slightly Ackerman . E . 366 move the technology envelope - at least enough Actionability . 152 Allen Chen's Challenge to His Staff to meet all the properties of SensorsUV while Adams . J., 147 changing their own product's attractiveness . Administered che SENSACION has invested in new technology Allen's next challenge to his staff is . " What are Advertising . 373 to create the next generation sensor . The new your ideas on how to defend our brand and grow Appel , T . . 227 Technology gives Sensor SUV a faster response the company significantly and what future chal Affiliate net wor late new time and greater resistance to shock and vibra- lenges face SENSACION ? " These questions Aryon . T. 429 tion . both features in which the market has were new challenges for the company . but not Agricultural Be expressed interest . This new distinction is unfamiliar for companies who had moved 434 . 4 primarily the result of the incorporation of a through the TAI Ahlberg , E . 2 Airborne . 2 Alcoa . 11. 26 Alibaba Inter Alpha test . I American CCase VIL . SENSACION Corporation High Technology Evolves to High Volume companies became CEOCEO of the new of reputation has little opportunity to become many Dan was the technologist - his doctorate in successful in markets dominated by or minated imicroelectronics and his custom design experi - SENSACION would always be playing by once led to his position as Chief Technology someone else's rules . Without special ci Officer CTO1 . and Amanda became the Chief stances , the company must expend considerable Product and Production Development Officer effort to build a strong reputation In established OPPOS Suitable staff were hired to create markets in which young companies compete Functional organization against companies with strong brands . young Branding and Positioning companies are at a disadvantage because they have no brand recognition or reputation In he New Company other markets principally early markets in which Shortly after becoming established it became there are no established competitors , a young apparent to the TDA team that the company company can build market ownership and brand competency was in the application of very reputation quickly . Consequently from an earl precise micromachining technology to critical point in time , the young company needs to think measurement applications . However . large about whether and how it should build its brand . customer were not likely to trust this capahi canah In general , unless a company is going to be hey without some tangible evidence . While low - cost , low- price supplier , a strong brand they were fortunate enough to have attracted reputation will translate into competitive early funding , they knew that they would not advantage . This fits well with the goal of he able to take on existing large players in the becoming known as the technology leader in the silicon electronics market . TDA elected to market - but not large markets in head to head carve out their niche as the leading edge tech competition with established firms nology leader in silicon micromachining . The Following the recommendations of th goal was in place - how could this be car ried consultant , the TDA team and a select set of Out ? How does a company without any curr any current technical employees were supported in active customers , products or volume manufacturing membership in all related professional soci capability convince the market that it has elies . This support included both financial pecial expertise incentives and time commitments . the active IDA soon recognized that they had little membership became part of the job descripti ption expertise in the communication area . They hired for these individuals . Soon . SENSACON repre - a marketing and public relations consultant to sentatives were chairing I echnical committees assess the competitive environment and recom - and conferences . This was only the start . mend a positioning strategy for the company At Technical papers were written for presentation the same time this was to happen . Tom would al conferences focusing on SENSACION tee work to strengthen the financial support for the nology and its potential in the marketplace new organization while Dan would focus on Hypothetical examples of high - volume appli leading edge sensor technology . Amanda would cations of the technology were demonstrated at put together the capability to make " more than associated trade shows A delicate balance was one of " any new products . necessary between revealing proprietary infor The new marketing consultant provided mation and presenting technically enlightening his recommendations to IDA . Basically the information Through the relationships of TOA team learned that strong brands take time PR consultant SENSACION was able to get to build unless special circumstances prevail . mentioned as an up - and coming organization A slant - up or young company without a brand by editors of trade journals and magazinesCASE VIL SENSACON Corporation 1 High Technology Evolves to High Volume Winand Nelson and Dan DelMonaco were Ameritrol an electronics company that calories Sing in the Bella Mis Restaurant & Bar on to OEM applications of electronic control Hot Street in downtown San Jose California . modul odules ; and Tom , a financial professional Theether with Tom Foster their third partner was enjoying six months of sanity checking and co-founder of SENSACION , they vacation enabled by financial gains from hiseed about how they got to this point . why the acquisition , by a large conglomerate of they separated and what did it mean to their a small start - up company where he had bee joint company . The past years had been a very one of the first employees Amanda and Dan traumatic period for SENSACION . Its marke were anxious to move ahead . with line were changing - the transition beyond visionary patience for the " bureaucracy " of their current adopters was occurring and the founding part - employers , and Tom was interested in his hers had to make tough choices for the company next business -building opportunity . They made a natural team and themselves . Six years prior they had each worked for Silicon micromachining is an extension different companies in the sensors and controls of the technology that makes integrated industry . They met at a four -day Sensors Expo circuits , extended to three dimensions . This trade conference at the San Jose Convention process is used to manufacture many types of Center in a plenary session about " the future of microstructures , referred to in the industry as micro - robots ." Each of the three professionals micromachined electromechanical systems - Saw a unique opportunity , not in micro- robots , MEMS but in the enabling technology known as silicon Within four months , the TDA team ( Tom . micromachining . Their friendship began at the Dan and Amanda - TaDa ! ) , as they called them conference and they recognized their common selves , had relocated to Silicon Valley to begin interests and business outlook . At the time , the ground roots development of their new stan Amanda was a product development manager up SENSACION Corporation . They believed that with General Controls ( GC ) , a well-known each member of the team brought a needed and established electrical controls company ; experuse lot he venture . Tom , with his experience Dan was " Chief Technology Evangelist " of with some of the financial aspects of start- up This case study is a compilation of the experiences of several companies as they progress through organization and product life cycles Simplifications have been made for academic clarity and care has been taken to prevent any direct relationship With any single market participant Much of this case has been used as a continuous example through the text Portions to been repeated andlor edited here . Students can find additional discussions and issues in Chapters 8 1 1 13 , and IS Microelectromechanical systems ( MEMS (also written as micro - electro mechanical or MicroElectro Mechanical the technology of the very small and merges at the nano scale into nanoelectromechanical systems ( NEMS and name technology . MEMS are also referred to as micromachines ( in Japan ) , or Micro Systems Technology - MST (in Europe MEMS are separate and distinct from the hypothetical vision of molecular nanotechnology or molecular electronic MEMS are made up of components between I and 100 micrometers in size ( 1.. .001 - O .I min and MEMS dever generally range in size from 20 micrometers ( 20 millionths of a meter to a millimeter . They usually consist of a around want that processes date the microprocessor and several components that imeract with the outside such as much woodso we trucks of classical physics do not always hold true Due to MEMS large surface area there size scales , the standard constructs of classical physics volume ratio surface effects such as electrostatics and wetting dominate wake volume effects such as inertia or thermal mass Set Www Jean Baptiste Waldner ( 20 08 ) . Nancy computers and Swarm Intelligence London ISTE john Wiley & Some 205 ISBN INTO1002030 Case VIL . SENSACION Corporation : High round horizon . The TDA team had just left the first Concurrent with the revelation that and product meeting of a task force created to solve a major significant product redesign warn that SENSACION was overwhelmed with inquires problem About three days after the new business from its new customers . Contract and procut was announced manufacturing management ment provisions , supply chai ply chain requirements , as an end up production of the existing well as a significantly more complex and we sensor In anticipation of a production inyou , buying center had exc dexceeded SENSACION org additional place had been leased and temporary nizational capabilities . The start that works Workers were added to the regular workforce , a small number of healthcare and sour SCUBA Unfortunately , even with added automated equipment manufacturers was unable to form ? elching manufacturing and machining for the the new customer base brass enclosure . and increased facilities and Manufacturing development , significant labor the tryout could not meet anywhere near product redesign for volume manufact wiring and the volumes hoped for In addition , the part - to - support for significantly larger and more com . part vanability of the sensors was outside of the plex customer buying centers became necess SUV manufacturers specification . While SEN - ties of the transition . The small staff that ACON technology was up . the challenge had been successful in creating value for manufacturing was not This was among the technophiles and visionaries - moving RED Issues addressed by the task force of key invention to market innovation - was one SENSACION personnel whelmed by the volume of new customer inquires It soon became obvious that the sensor and application requirements Additional market - would have to undergo a complete redesign to ing resources were added to interface with enable high volume manufacturing . The neces - customer demands in all phases . supply chain sary changes in the sensor included redesign of organization and development , customer educa the sensor itself for automated handling and tion in the proper application of the sensor and insertion into the enclosure ; redesign of the so on - all required development and courting enclosure and investigation of new material attrials , tion . SENSA CON needed to learn a new way of like plastics , to replace the brass enclosure : doing business new manufacturing expertise in high - volume plastic molding and assembly ; and new high "when wil al caponeweatherchanges Partners with Different Goal in protect the sensor core from the harsh vehi ENSACON was going to get big - bureaucrat cle environment diverse decentralized . The impact of the me The IDA team discussed strategy to solve business would impact not only manufacturing this new set of problems . They recognized that and product design but also the cutargued both a long term and a short term strategy were SENSACION Once a small specially program necessary to satisfy immediate customer needs company , SENSACION now had " growth no develop the organization to handle such itself organizationally Crossing into the growth tuations in a more routine fashion stage can be traumatic SENSACION management began the Tom , Dan , and Amanda were not in search for a qualified independent con Track agreement on the possible solutions to the manufacturer Hoping to eventually develop its problems Tom was Interested in and Dan own capabilities later in the contract period . To his next entrepreneurial effort of micro immediate lime pressures from customers did wanted to pursue them ext generation of micro Not allow SENSACION the luxury or develop machining Technology Only Amarketed by ing its own high volume manufacturing facility . SENSACION marketing team were shot Marketingand Case VIL . SENSACION Corporation : High Technology Evolves to High Volume ish Volu and papers within My SENSACION Customers acquiesced to lime delays and play bee we're accepted for publication in delivery problems investors and and sing SENSACION meet thethe well professional journals As inomen . positive cash flow at SENSACION TO be fun developed SENSACION experts were the only sense of urgency asked to contribute signed articles about SENSACION Corporation had success . acted in one welcome to trade journals fully developed a growing marks for the in that market segment In reprint form the micromachined pressure sensor and was the lined articles were used as leave behind sales deliver on the profitability promise port items . Aller approximately two years , management made to investors By avoiding ENSACON was the technology icon in the large - scale manufacturing fixed costs went pressure sensor industry . kept relatively low throughout the introductory period . Sensors were elched and assembled without much automation . The labor force was The Business Development Strategy increased or reduced as needed through the use SENSACION engineers and developers spent of an agency that provided skilled temporary assembly workers . Users of the sensors were these two years developing new products in technology - oriented themselves , and volumes collaboration with customers . To support the were such that the inconsistencies that resulted business needs of the firm , management acused on low - volume but technically com from hand assembly could be adjusted in the plex markets In these markets . SENSACION users' operations . SENSACION's production could prove the technology without investing in volume developed to approximately 5. 090 units high -volume manufacturing . Initially , the per month as the sensors became wider market was comprised primarily of visionaries accepted in SCUBA diving equipment used typical applications were in self - contained measure pressure underwater and in medical underwater breathing apparatus ( SCUBA ) devices used to measure blood pressure equipment and healthcare devices . Both market Additional high-value customers in chemical segments were ideal targets for SENSACION as process control and environmental monitorn market demand and SENSACION manufacturing developed confidence in the product capabilities ( high variable costs , no economi of scale , quality , and accuracy of greater value New Market Developmen that low cost ) were well matched The marketing and PR consultant retained by In the product development stage and the the IDA team advised them that SENSACION introductory stage of the product life cycle , business was growing to the point where the the SENSACON staff of technology - savvy should invest in a strong internal marketing customer engineers " worked closely with organization SENSACION must develop mar stormers . The creation of the pressure sensor kels to avoid becoming a one - product company was dominated by the specific customer A business development effort that will reach needs of the visionary market Product changes the first pragmatist in ist market segment that can were mostly incremental as the customers in serve as a beachhead for crossing the chase this market segment were interested in the would soon be necessary and shortly afterwards performance of the sensor and were willing to a market development effort to translate it be design their products to accommodate the business successes to other comments would SENSACION product . The customers low required . As SENSACION becomes comfort volume products provided an excellent proving able with the capabilities of its offering ground for the SENSACON technology . potential usersCase VIL ENSACON Corporation High Technology E alves to High Volume 491 the new direction . IDA recognized that at least buying paris " rather than " specifying a soly the I of their team was likely to move on lion " the business would be vulnerable to a me too " organization that could focus on man Under New Management ufeaturing efficiencies distribution economies . Two years ago while SENSACION made the and alternative cost (read lower " ) positions with purchasing departments transition to the growth stage of the PLC se for Allen wanted SensorSUV to be a stan management made many changes While Tum remained a director of the company , a search dard in the industry . Through the development firm was hired to find a new CEO with high . process with customer engineering stalls . customer laboratories as well as an independent Volume business experience . Eventually . Allen Chen , formerly with Motorola a large automo . investigatory body selected by the customer live electronics supplier became CEO of SEN . Verified the performance of Sensor SUV Based SACON . Concurrently . the process began to on samples performance data supplied by SEN make the customer relationship routine and SACON the customer's laboratories developed a standard based on the accepted performance to establish SENSACION as the standard in it market . A decentralized management approach of the sensors as previously approved Once this standard specification was completed and was required accepted , copycat products would be require to meet it This standard is " owned " by the first Innovating the Need - Not the manufacturer - - SENSACION . Any " me - log Technology manufacturer will always be faced with the One of Allen Chen's first initiatives was to shift question . " Does your sensor do everything that SENSACON from a technology - driven com - SensorsLY does ?" pany to a market- driven company . Allen ree nized that as SensorsOV matured and became New Channels known throughout the customer base . less application development would be necessary Allen also immediately expanded the field on the part of SENSACION . However , users of market development team and approached in Sensor SUV would begin to look to the next SUV manufacturers with application design n designs generation of their product an act and how it could be for all vehicles . not just SUVS , and also enhanced . This enhancement could lead to a approached other vehicle vehicle manufacturers . The need for a next generation sensor . This next - process began of translating this new business generation produc tion product , if it was to be truly new , success to additional opportunities . Customers might require new technology . style , and were soon found that were interested ; materials and or would have different perfor development of hand - held tire pressure sen mance requirements . By serving the need and fors for car owners and heavy- duty models fo Wels for not the product , the Sensor SUV brand could tire shops . become known as a solution rather than SENSACION would soon find it needs component part . sary to develop a new marketing channel Allen also realized that as long as for the product as dealers and tire repair shops SENSACION was known as a technology com - adapted to the n ew vehicle feature and needed pany , technology innovation would be neces - service and replacement parts - and the Sary , though not sufficient , for success . The training to use them argument that SENSACION was focused on Translation to the automotive after high technology was a dangerous position . If market to reach vehicle owners that wanted to the customer believed that he or she was just upgrade older vehicles was also anticipated