Form Print Ortho 500

FormPrint Ortho500 Case Analysis

Submitted ByGroup 15 BBMK Sec-2 Date: 9th September 2015

Overview The company FormPrint was founded in the year 1998 by an engineer who constructed prototypes from three dimensional designs using additive manufacturing principles. These principles mainly involved producing tangible, three dimensional forms and later transformed into physical products through a printing device. Prices for these devices varied from as low as $10000 or less to as high as $700000 for large complex systems. FormPrint was an early entrant into the 3D printing industry. It primarily focused on healthcare industry with products for Dental, Auditory and Orthopaedic usage. #D printing industry had a worldwide market of about $2.25 Billion in 2012 and would reach $3 Billion within one year with a y-o-y growth of 33%. The Company has been basing its value proposition and approach on selling best-in-class product performance at premium prices. Also, FormPrint was known for selling products with high quality and with technical sophistication at premium prices. The company had sales of $42.9 million by the year 2013. FormPrint predicted that out of $235 million of the global 3D printing market $176 million was to be coming from US market which contributed to 75% of the total market in healthcare. Another observation was that non-hospital market and lowpriced medical items would be of prime importance in the days to come. Problem Statement: In what ways can Willis weigh options between ISR approach and direct sales approach for the sale of Ortho500 which would result in favourable sales results and hence profitability for FormPrint in the short-run. Situation Analysis: a) Company a. Early entrant in the market b. Technology advancement in prototype manufacturing process c. High product quality d. Wide product range e. 80% of the Ortho sales to Large customers (more than 200 beds) f. Well trained salesmen b) 4 P’s: Product Price Target Market (Place) Promotion

Ortho500 $68000 Large non-hospital orthopaedic clinics Conference Sponsorship/ quarter at 4 orthopaedic conferences, direct email campaign, a PR campaign, product related info on the company’s website

c) Competition: For Ortho500 Company Ashokal DragonBend LoganSatr PrintFlex FormPrint

Market Share 25% 17% 12% 20% 22%

Growth Rate 73% 43% 42% 85% 74%

Price Range