Sunrise Wheelchair Case Study

Our team recommends Chandler to introduce Guardians new lightweight standard wheelchair. Guardian is not a player in wheelchairs with only a 2% share of the standard wheelchair grocery and nothing else.The purpose for Guardian to introduce the lightweight standard wheelchair, with a forecast market growth rate of 15% yearly, is only meant to complement Guardians existing product to seek for higher growth in its division since the meshwork margins of its existing product lines are razor thin.Whats more important is that Guardians new lightweight standard wheelchair is positioned differently from Quickies, with a distinct design and features at lower prices more towards a low-end market. Although cannibalization may still be a concern, the chances are Guardian will able to pass a niche market for a different target segments differ from Quickies.There is a demand and a need for Guardian division to prolong product line to grow. Guardian took almost half of the market share of crutch es, walkers and other product lines. Although the rest half has been controlled by others, it can be regarded as the potential sale of us, as if we can provide a rival product with even better quality to earn that possible profit.This new wheelchair is a good tool to complete the product line, and cover the demand of expanding profitability as well. Quickie, rather than worrying about cannibalized by Guardians chair, should ramble more efforts on building its competitive advantages to differentiate itself from its major competitor Invacare, not Guardian. Invacares wheelchair model has beat Quickies. Quickie is kind of an diseased divergence within Sunrises product line, which is losing competition power.Introducing Guardians chair will help Sunrises fight against its main competitors, Everest & Jennings International and Invacare. They were competing by cutting down price since 1990.By making few changes of Guardians standard product, the new chair would carry a whollysale price 10% below Invacares lightweight standard model. If Quickie continues to lose competitiveness, adding Guardians new wheelchair can be a backup and beneficial for the whole company.