Segway: Case Study
INTRODUCTION
In December 2001, Dean Kamen of Segway LLC unveiled the Human Transporter HT. With lofty ideas of replacing the automobile and unrealized sales forecasts, Kamen's Segway HT has not moved mankind nearly as much as Kamen had expected.
With an annual CEO change since start-up, it is apparent that Segway's lack of a stated vision and mission is haunting the organization. The lack of "a way ahead", coupled with a less than well defined marketing strategy, has caused Segway to fall short of Kamen's expectations. Kamen, while a definite asset to Segway, could be a detour or even a dead end on the company's road to success. Historically, Kamen's successes have been based on his abilities to be innovative in research and design, while at the same time being able to pass the developed product off to a partnering company that is able to take the product to market. Kamen's emotional attachment to Segway is preventing its success. As if these problems were not enough, combined with the fact that there was no pent up demand for such a product, Segway's future success will be dependent on an organizational make-over.
SEGWAY: SNAPSHOT 2004
After analyzing the Segway case material we felt that the Value Chain would provide an all encompassing view of Segway's strengths and weaknesses in particular areas of interest (see Figure 1). Figure 1.
Segway Value Chain
In order to highlight Segway's situation, we have broken down their value chain into two simple classes. Firstly we will focus on "what is working" and secondly on "what is not working" for Segway.
What is working
Technology: Segway uses their patented design to produce a socially responsible (green product), environmentally friendly mode of transportation. Kamen is a proven innovator with a history of success in the development of human assistive devices.
Procurement: Segway has developed relationships with 13 partner companies. These partnerships allow
In December 2001, Dean Kamen of Segway LLC unveiled the Human Transporter HT. With lofty ideas of replacing the automobile and unrealized sales forecasts, Kamen's Segway HT has not moved mankind nearly as much as Kamen had expected.
With an annual CEO change since start-up, it is apparent that Segway's lack of a stated vision and mission is haunting the organization. The lack of "a way ahead", coupled with a less than well defined marketing strategy, has caused Segway to fall short of Kamen's expectations. Kamen, while a definite asset to Segway, could be a detour or even a dead end on the company's road to success. Historically, Kamen's successes have been based on his abilities to be innovative in research and design, while at the same time being able to pass the developed product off to a partnering company that is able to take the product to market. Kamen's emotional attachment to Segway is preventing its success. As if these problems were not enough, combined with the fact that there was no pent up demand for such a product, Segway's future success will be dependent on an organizational make-over.
SEGWAY: SNAPSHOT 2004
After analyzing the Segway case material we felt that the Value Chain would provide an all encompassing view of Segway's strengths and weaknesses in particular areas of interest (see Figure 1). Figure 1.
Segway Value Chain
In order to highlight Segway's situation, we have broken down their value chain into two simple classes. Firstly we will focus on "what is working" and secondly on "what is not working" for Segway.
What is working
Technology: Segway uses their patented design to produce a socially responsible (green product), environmentally friendly mode of transportation. Kamen is a proven innovator with a history of success in the development of human assistive devices.
Procurement: Segway has developed relationships with 13 partner companies. These partnerships allow