Analysis Of Segway Personal Transporter

Introduction

Segway Personal Transporter (PT) is a self-balancing two-wheeled, battery-powered personal transportation device with a set of handlebars, see Figures below.

It is self-balancing, really easy to operate and a personal commuter can travel up to 12 miles/hour.
Although Segway is a technological marvel, it did not quite well match the high expectations when it was first revealed in the press in 2001. Initially the press were carried away with new interesting device and its potential to change the world and how we commute. Even Steve Jobs predicted that cities would be built around it. So, what went wrong?
In this essay, the reasons why Segway didn’t do a better job in anticipating the issues that will face the project will
Being a technological piece of art and mechanically robust machine, sales expectations were too high. Segway was predicted to be the fastest company in open era to hit $ 1 billion dollars in sales and they were so optimistic they erected a 77,000 square feet factory that can produce around 48,000 units per annum with an average price of $ 5000. However, only 6000 units were sold.
One of the reasons Segway didn’t sell very well is that there were too much hype surrounded the product and expectations were too high. This could have been avoided by introducing it gradually to niche markets instead of going national on day one, before it was even legal to use. Another reason is that people questioned its price, $5000, which puts out of reach of many people , and practicality. People were not sure where to get it serviced.
These issues could have been resolved if a proper market analysis was done. An outcome of this research could have suggested that it best suites highly populated
The objective of this research is to help a company or an entrepreneur understand the business environment better as well as customers’ needs and, therefore, make better business decisions.
Once the market research data is compiled, it is then evaluated and upon which recommendations and conclusions about are drawn. This includes how the design of the product would look like, its price, initial niche markets, etc.
Segway had a brilliant invention but they should have also focused on innovation and creativity, and that is by always going back to the market, understand what the market needs and adopting these changes into your product.
Segway could have also started by targeting niche markets initially, giving Segway PT’s to bicycle clubs, skateboarders, extreme sport stars, college polo teamsetc , for free and see how they like it. If, for instance, that bicycle people are the first people to like it, they could open rental offices by the bicycle shops so that it can be rented at tried before being bought. The bicycle shop could have also been used to service Segway PT’s.