Contents
Introduction................................................................................................................ 2
1 Type of innovation................................................................................................... 3
2 Causes for the failure.............................................................................................. 5
3 Actions to the team to manage...............................................................................7
Reference:.................................................................................................................. 8
Introduction
This article will look into Segway, a company that makes personal mobility devices using self-
balancing technology. The company's objective to create a vehicle that might assist people travel
more effectively was sadly not realized. We will evaluate performance and rely on innovations to
decide the sort of innovation that is most suited to the company. Along with that, we'll look at
why the company with such a brilliant idea failed in the end. We will offer advise based on the
forms of innovation that we have selected to better manage. To comprehend the intricacies, we'll
first discuss the several sorts of advances that may be applied to Segways. Then we'll discuss
why Segway failed: the company's emphasis on innovation above user demands and safety
repercussions contributed to its demise. their. The difficulty of operating a Segway, which needs
a certain degree of skill and balance, makes it challenging for untrained riders, resulting in
accidents and injuries. The last piece will discuss the solutions we devised for Segway, such as
fostering a collaborative work atmosphere within the organisation where team members feel
empowered to express ideas. Thinking and working towards a unified purpose is critical for
generating innovation and product development. Segway may promote product development and
innovation by encouraging team members to communicate openly, share information, and
respect one another. Training sessions, workshops, and information sharing programs may help
improve cooperation and knowledge exchange inside the organisation, resulting in better product
outputs and customer satisfaction.
1 Type of innovation
To recover and grow their business, Segway should first evaluate the necessity to innovate, and
the most important of these innovations is the invention. Segway's products incorporate new
technologies they do not know (Fukuda,2013) that this product must be designed to meet client
requests. This has both pros and downsides; on the one hand, it will pique clients' attention and
lure them to the company; on the other, because it is a new technology that no one is aware of, it
will increase the security of the job. Segway may have investigated price changes to make its
products more accessible to a larger user base. This might involve implementing cheaper price
models or providing flexible pricing choices like leasing or subscription-based services. Because
the firm's price innovation will strive to approach to pricing strategy (Hinterhuber,2017) and
create a new strategy for the company. Emotional reaction to enhance customer satisfaction
(Chien,2016) is one of the prerequisites for certainly improving the user experience since users
are one of the reasons that may assist the firm sell items in addition to changing the design. For
example, work on enhancing the Segway PT's entire user experience. To improve comfort and
usefulness, the grip, foot, and control technologies may need to be fine-tuned.
Adjustable features or customisation choices are available to accommodate users of various
heights or body shapes, that produces a better fit with users (Kumar,2009). Design innovation
may concentrate on making the Segway PT more portable and easier to move. This might
include adding foldable mechanics or modular designs that make it easier to store or transfer
items within the vehicle. However, in order to develop more effectively, Segway can consider
employing established technologies to increase the product's safety, such as installing extra
development software. Once assigned, existing risk and predictive models can be leveraged to
provide a user with objective, empirically driven feedback including quantity of safety risk
(Hallowell,2016). Once allocated, the programme will notify us of any hazards that the user may
face as a result of AI technology, allowing users to choose the least dangerous approach and
reduce accidents. However, the Segway has had a significant impact on its commercial
acceptability and success. Meanwhile, when it comes to products, people and businesses may
have different perspectives. Using customers as a source of new product ideas ranks first in terms
of importance for businesses (Karakaya,1994) whereas Segway forges its own route when
utilising its own ideas as a basis. This knowledge contributed to its initial success and piqued
interest. However, the novelty aspect wore off with time, and some people came to see the
Segway as a technical toy rather than a practical mode of transportation.
2 Causes for the failure
To begin, we employ Market Segmentation Theory, a fundamental marketing idea that entails
separating a large target market into smaller groups that are easier to manage based on certain
characteristics market segmentation is one of the most widely accepted concepts in marketing
(Hunt,2004). These segments have comparable demands, interests, or behaviours, so businesses
may tailor their products, services, and marketing tactics to efficiently target and attract certain
client groups. Companies that divide their markets can gain a deeper understanding of the
particular demands and preferences of various client groups. This allows them to design focused
marketing efforts that resonate with certain categories, leading to more effective communication
and better engagement, but Segway does not rely on this and does not identify and provide a
specific customer file. Market segmentation enables businesses to tailor their products or
services to the specific needs of each client category. Companies may improve client happiness
and loyalty by delivering customised solutions, like Segway did initially, until Segway primarily
aimed to create a vehicle that is easy to use and compact, but failing to target customers first and
balancing market prices results in high prices, legislative and spatial issues (Clark,2019) setting
costs too high compared to the general level, resulting in Segway a lack of appeal to consumers
(Bagade,2017) inherent in an expected brand. The Segway's initial price of roughly $5,000 posed
a significant barrier to reaching prospective customers. The fact that Segway is expensive and its
market price is quite high (COUNCIL,2006) makes mass adoption difficult and restricts
Segway's market reach. Because utilising a new sort of media that has never been seen before is
extremely tough for those prepared to pay a high price for a product that does not provide much
convenience to the customer. Segway has three primary goals: corporate, personal, and
university solutions. However, their objective is for this vehicle to replace vehicles or public
transit, which has presented too many issues and hurdles for the firm because to the restricted
range per charge. Furthermore, its slower speed compared to a car makes it less appealing for
prolonged travels. Next The Resource-Based View why I picked this theory as a strategic
management framework that emphasises a company's internal resources and talents as the
primary drivers of long-term competitive advantage and exceptional performance. RBV,
developed by researchers like as Jay Barney and Birger Wernerfelt, focusses on how
organisations may use their unique resources to obtain and retain a competitive edge in the
marketplace. Drivers frequently face limitations on operating Segways on certain highways or
trails, restricting their use for everyday travel. These two factors have made the Segway vehicle
more cumbersome than public transit or bicycles, reducing people's compassion and interest in it.
Segway believes that valuable, rare, inimitable, and non-substitutable (VRIN) resources and
competencies provide a sustained competitive edge. Companies with resources that match these
characteristics are likely to outperform their competitors in the long run. Furthermore, resource
disparities result in varying competitive outcomes. In addition, resources that do not transfer or
are difficult to renew help to create a long-term competitive edge. This is why Segway failed
despite its best efforts to produce goods based on human thought. One of the reasons the Segway
firm went bankrupt, despite having such a fantastic invention, was because the vehicle was
difficult to manage, resulting in numerous accidents and injuries. Cases in which the user loses
control or collides with an obstruction, causing damage. These occurrences drew media
attention, shaping public view of the Segway as a potentially deadly instrument. According to
data, around 41 instances were included, with four patients (40% of hospitalised patients)
requiring admission to the ICU. This resulted in the company's downfall. Furthermore, because
the business designed a vehicle that is extremely difficult to handle, the Segway demands a
certain degree of skill and balance, making it tough for unskilled or first-time users to use. When
utilising the equipment, it is difficult to maintain good control, which might lead to mishaps.
This is supported by the fact that there is a range of a total of six articles were included that
included data on 135 patients (Boniface,2011) primarily linked to orthopaedic problems. Segway
misunderstood the demands of the majority of users when they developed this product. They
overvalued their goods, in part because they did not focus on addressing consumer demands and
instead built new items based on the group's own ideas and all implications of information being
scarce and therefore costly(Pourmand,2018). Furthermore, their overvaluation of their items has
resulted in additional challenges, such as manufacturing and inventory management issues. The
early surge and expectations did not translate into sustained customer demand, resulting in
lower-than-expected sales.
3 Actions to the team to manage
First, Segway must use a user-centered strategy to model the information flows for targeted field
operations is presented (Sorensen,2010). Along with doing extensive user research, getting input
from current customers, and actively involving future consumers throughout the design and
development stages. Furthermore, they may target consumers who wish to explore new and
unusual mobility solutions, as well as technology aficionados, for whom Segway might offer
attraction and intrigue. Segway, on the other hand, should pay attention to brand promotion in
addition to marketing strategy since this fundamental issue will impact the success of a branding
strategy (Arthur Rooney,1995) because once a great branding strategy is established, they can
successfully explain the product's value proposition. To modify public opinion and resolve any
current humiliations, emphasise unique features, advantages, and real-world use cases.
Furthermore, comprehensive and balanced advertising is not overwhelming, allowing buyers to
assess the amount to which the product's aims are achieved. Learning from previous products,
the next step after launch is for the management team to continuously review and carefully
evaluate each product before launching, or they can create new products that allow users to
contribute their opinions, which will help them enhance and improve product performance.
These consumer inputs will help to inform future enhancements and innovation activities. By
conducting client surveys using mainstream media and social media (Hai-Jew,2019). From there,
you may gather any good and negative feedback that is valuable to the firm. To be able to create
a product that has both aesthetic value and many good features, Segway should allow their teams
to collaborate with one another. Simply put factors associated with participants, team leaders,
senior management, and the organisational culture that seems to shape the emergence of
collaboration in teams (Jassawalla,2006) can create a work environment that encourages
collaboration, open communication, and mutual respect among team members. Create a culture
in which individuals feel comfortable expressing ideas, soliciting contributions from others, and
collaborating towards a common goal. By organising seminars, training sessions, or internal
seminars, you may encourage team members to share information. Encouraging individuals to
share their experience, best practices, and lessons gained with others can help to improve
knowledge among organisations and members.
