Question

after watching the videos on iRobot and the video on how to perform a SWOT analysis...

after watching the videos on iRobot and the video on how to perform a SWOT analysis in week 4 describe and assess iRobot's strengths,weaknesses, opportunities, threats, and the internal and external forces on the company

Homework Answers

Answer #1

Strengths

Healthy financial position

Broad product line

Strategic alliances

Strong corporate culture

Weaknesses

Increased sales, marketing, & distribution costs

High product pricing

Opportunities

Endless new markets

Increase unit sales

Defense & Security alliances

Threats

SubstitutionGovernment cutbacks

OutsourcingSupplier bargaining power

Personnel

iRobot is a robotics design firm that develops products for both the consumer and military markets. The firm is in a healthy financial position with approximate $139 million in cash reserves, a broad product line, and strategic alliances with the government to research and develop new robotics. However, with those strengths come weakness and the decline in military spending have weakened that area of revenue with a loss of 55% from 2011 to 2012[iRo12]. Additionally, the decision to expand domestic advertising has increased sales and marketing expenditures by approximately 4%[Tim13]. With such strong internal factors, they have the opportunity to expand into new markets with new products, increase unit sales of current productlines, and continue to bolster their alliances with Defense and Security sectors. The problem with these opportunities is the slow recovery to the global economic recession, which has resulted in decreased consumer and government spending. Added to the threat of concern are increased competition .

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