Minnesota Micromotors Case Study


“Organization has experienced a decline in their performance recently due to the recent market share loss. They are now concerned, how can they sustain their market share for growing efficiently.”



 Minnesota Micromotors Inc. manufactures direct current (BLDC) and brushless motors that are used in orthopedic devices medical equipments.

 The motors manufactured by the organization are used by surgeons in medical treatments like reconstructive surgeries, trauma surgeries, large bone narrow surgeries and medical treatments for athletes.

 Minnesota Micromotors Inc. differentiates itself by providing efficient, reliable and durable products to the market.

 The organization strongly believes in delivering a higher level of value to its customers through their products and services.

 The division has several opportunities in the long-run as it efficiently caters to the high-end orthopedic and medical devices markets.


 The segment A customer of the company demands higher levels of customization to the devices, which in result increases the level of support by the company in order to place a premium on the motors power-to-size ratio. They generate 33% of their revenue through this segment by catering to a 19% of this segment’s market.

 For efficiently catering to their customers that lie in the Segment B, they majorly focus not only on the thermal resistance performance of the motors but they also provide a higher value to the customers by delivering technical knowledge through their sales representatives. MM generates 8% of its total revenues from this segment and holds 4% of the market share of this specific segment.

 Segment C of the market requires efficient and superior motor performance with attributes of effective thermal resistance of the motor and proficient power-to-size ratio of the motor.This segment is the least price sensitive as compared to other segmented customers of the company; helping the company in generating 7% of their company’s revenues through catering to this segment.

he market share of the company in this segment is 4%.

 The most price-sensitive customers of the company lie in Segment D. The OEMs in this segment prefer to sell their medical devices in bulks to the GPOs. They provide medical devices to their individual members on comparatively significant cheaper rates. A major part of their dollar inflow comes from this segment, as it efficiently generates 22.8% of their total revenues while catering to a 7% of the total segment in the market.

 The customers who place their order of smaller volumes and frequency to the distributors are also quite price-sensitive.These customers usually make their purchases from the distributor’s catalog and demanded a higher level of technical information, which they expect their vendors will be able to provide.Segment accounts for 29% of Minnesota Micromotors’ revenues and the market share of the company in this segment is 11%.


 Several competitors of the company that offer their motors, and lie in Segment A have a collective market share of 81%. The competitors of the company in the same segment generate a total a dollar amount $17,302,500.

 In Segment B of the industry, the competitors of the company have a market share of 96% communally. The revenue generated by the competitors in this segment of the market is $22,848,416

 96% of the market share in Segment C under the hold of all the competitors exists in this specific segment of the industry. Collectively, these competitors are responsible for generating an amount of $21,025,248 from the total generations of the industry.
 $36,735,392 is generated in the Segment D of the industry by the competitors with the support of making sales to 93% of the market of the specific segment.

 Small-volume customers make their purchases mostly from the distributors and this brings revenues of $26,942,000. The competitors of Minnesota Micrometers Inc. are serving to an adequate market share of 89% in this small-frequency segment


 Minnesota Micromotors Inc.’s operations are affected by the political regulations imposed on their operations by the government of the territory. The stated minimum wage rates influence the expenditures of the company.........................

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Essay on Minnesota Micromotors, Inc. Marketing Simulation 2015 Q2

1069 WordsMar 14th, 20145 Pages

Minnesota Micromotors, Inc. Marketing Simulation 2015 Q2
Kaplan University
Marketing Management

Minnesota Micromotors, Inc. Marketing Simulation 2015 Q2 As I get further and further along in this simulation, I have noticed that I am beginning to understand what it takes as a marketing manager in order to be successful. Careful considerations must be made to be sure that the right decisions benefit both Minnesota Micromotors, Inc., and our customers. Our success comes from our customers’ success and loyalty that they have with this company. In finding ways to incorporate the important factors that matter most to our customers is what will bring in new customers and keep our existing ones around for the long hall. My…show more content…

I don’t think that I need to have an extensive sales force in order to be successful. I think the biggest decision that I made in 2015 Q2 was increasing the large customer discounts for segments B and D from 12% discount up to 14% discount. I noticed that last quarter both of these segments expressed their concern that they were not getting the additional discounts that they should for being such long time customers. The results of my decisions that were made in 2015 Q2 turned out to be better than last quarter results. Existing customers increased by 9% and sales from new customers increased by 6%, while the distributors, on average, are attempting to achieve a 5% profit margin; overall not a bad turnover from prior quarters. These decisions led to segment A as being very satisfied reflecting how the motors’ high power to size ratio allowed them to pick up some new business from some loyal customers. Segment B was satisfied in this quarter like they have been in previous quarters, however they expressed their concern on future orders that they would like to receive more insight into the market trends by our staff. Segment C increased their overall satisfaction from prior quarters of being satisfied to very satisfied in this quarter. By getting the motors that they ordered to them in a rush, allowed them to land a contract from another GPO. However as the saying goes, “you can’t win them

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