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iRobot's Competitive and Resource Strengths, Opportunities, Weaknesses, and Threats

Zachary Stiles

Florida State College at Jacksonville

GEB4891- Strategic Management and Decision Making

Professor Dunham

6/1/2024
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iRobot's Competitive and Resource Strengths, Opportunities, Weaknesses, and Threats

iRobot has many competitive and resource strengths that have enabled it to excel in the

consumer robotics industry. iRobot has been in existence for several years and can be considered

the market leader and one of the pioneers in the industry, which gave the company significant

advantages compared to its competitors, especially when it comes to Roomba robotic vacuum

cleaners (PatanasakPinyo et al., 2022). Also, the technological know-how and research and

development have been valuable for the company and have closed the innovation gap for

relevant competitors. On the threats side, more acceptance of smart home technology and

adoption of robotics in consumer homes is a massive growth area for iRobot.

However, iRobot has noticeable weaknesses and threats as well. The high production

costs also remain one of the major problems of the company, which might lead to relatively high

prices of its products compared to those of competitors. Also, the threat of rivalry from other

producers of the robotic vacuum, such as Shark, is still high since they are coming up with better

products and offering stiff competition to iRobot (Turnipseed & Gamble, 2019). Altogether, the

effect of all these forces on iRobot’s future profitability still lies in the balance. To sustain its

bottom line, iRobot has to reinvent itself – from coming up with new products to improving the

production line as well as looking for new markets even as it fights hard to protect its shares in

the market from fierce rivals.

iRobot's Competitive Advantage and Sustainability

iRobot currently has several major sources of competitive advantage. For instance, the

Roomba brand enjoys significantly high brand awareness and is closely linked to robotic vacuum

cleaners in the eyes of most consumers (Daily-Tube, 2019). iRobot has also been an innovation-

driven company with a strong focus on R&D functions that provided consumers with such
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unique features as smart mapping and object recognition, which placed them ahead of their rivals

in terms of technology. However, these advantages seem very fragile in the long term, and fast

technology adoption is an indicator that competitors can quickly catch up. So, iRobot needs to

constantly search for new sources of competitive advantage to consolidate its leadership position

in the future.

To enhance and maintain a sustainable competitive advantage, iRobot could implement

several strategies, such as continuous innovation. To sustain a competitive advantage in the

market, iRobot must continue to invest in research and development and introduce pertinent

features and technologies that set them apart from other competitors (Duch-Brown et al., 2021).

This could pertain to improvements in navigation, the ability to clean, battery duration, or

compatibility with other smart home gadgets. Another would be the establishment of joint

ventures and affiliations. Strategic cooperation or acquisition of similar companies can help

iRobot broaden its product offering, find new markets, and incorporate more know-how.

Moreover, the company should adopt an ecosystem lock-in.

iRobot's Biggest Competitive Threat

The major competitor that is a threat to iRobot in the market is the Shark Ion Robot,

which has functionality, cost, and brand advantage. In terms of functionality, Shark Ion Robot

offers features that are not inferior to iRobot’s best products, including intelligent navigation,

available schedules, and compatibility with the mobile application (Turnipseed & Gamble,

2019). Furthermore, the Shark Ion Robot also has a Wi-Fi option, and users can control it using

voice commands; this is different from some of the models made by iRobot. Moreover, the Shark

Ion Robot is relatively cheaper than other similar models developed by iRobot, thus making it
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appealing to consumers who prefer devices in this price range. This pricing advantage could,

perhaps, influence consumers who are likely to bargain their loyalty and go for cheaper products.

iRobot's Financial Condition

From the financial statements of iRobot, the financial wellness seems favorable and has

been increasing over the years from 2014 to 2018. The overall revenue, gross profit, operating

income, and net income of the company increased annually, positioning it stronger than it had

been the previous year (Turnipseed & Gamble, 2019). Also, the balance sheet clearly indicates

that the total assets have gone up while the stockholders’ equity has also risen and liabilities are

under control. The regular revenues and profitability of the company suggest high market

demand for products and efficient business implementation. Based on the current trends

observed above, in the next few years, iRobot will be in a good place to strengthen its hold in the

market even further and improve its profitability. The market hold would strengthen its brand,

and the company might increase its research and development efforts and pursue acquisitions

and partnerships that can drive its growth in the future.

Advice to CEO Angle to Improve iRobot's Market Position and Profitability

Given the pressure from competitive forces and ongoing shifts in consumer behavior, I

would advise the CEO to consider switching to subscription-based strategies. Additionally,

through the direct sale of products, iRobot could leverage new monetization models such as

subscriptions where they could sell subscriptions to robot vacuum cleaning services where the

customer has to pay for periodic cleaning services or a replacement fee. Such models can

generate regular revenue and create high levels of customer satisfaction to guarantee continuous

business with the company (Rønde et al., 2022). Also, I would advise the CEO to adopt openness
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in their organization through open innovation. Through acquisitions and other strategies, iRobot

can ensure that new ideas are introduced to the company, thereby enhancing its competitiveness.
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References

Daily-Tube, (2019). Too lazy to mow the lawn? Roomba reveals Terra 'lawnbot' that can do it

for you. Retrieved from https://www.youtube.com/watch?v=5dzrPo77XkU

Duch-Brown, N., Rossetti, F., & Haarburger, R. (2021). AI Watch Evolution of the EU market

share of robotics: Data and Methodology.

PatanasakPinyo, T., Chen, N., Singsornsri, N., & Kanchanaporn, N. (2022). Verifying and

assessing a performance of an automatic vacuum robot under different room conditions.

Proceedings of 37th International Confer, 82, 11-20.

Rønde, T., Arora, A., & Fosfuri, A. (2022). Caught In The Middle: The Bias Against Startup

Innovation With Technical And Commercial Challenges (No. 16862). CEPR Discussion

Papers.

Turnipseed D.L. & Gamble J. E., (2019) iRobot in 2019: Can the Company Keep the Magic?”