Roomba 460

Executive Summary

iRobot is a leader in the global consumer robot market that designs and builds robots that assist people both inside and outside the house (2018 Annual Report). The company was found in 1990 by Colin Angle, Helen Greiner, and Rodney Brooks with the vision of creating robots with a purpose (Thompson, Peteraf, Gamble & Strickland, 2020). The first robot built was designed for space exploration. iRobot focused on defense, security, and research robots until 2002 when they produced their first robotic vacuum cleaner, the Roomba. With the success of Roomba and the increasing consumer robot market, iRobot divested all of its security and military business in 2016. iRobot has sold over 25 million consumer robots, controls 75 percent of the global robot revenue, holds approximately 460 U.S. Patents, and 800 foreign patents (Thompson et al., 2020; 2018 Annual Report). In the fiscal year 2018, iRobot’s domestic and international revenue increased by 24 percent and 20 percent, respectively. iRobot directly services retailers in the United States, Japan, Canada, and seven other European countries. iRobot employs 1,032 people and can produce 20,000 robots a day through their manufacturing partners in Southern China (2018 Annual Report). iRobot continues to design new robots that help alleviate tedious household chores like vacuuming, cleaning gutters, and cleaning the pool.

Existing Mission, Objectives, and Strategies

Mission Statement. Change the world by building practical robots that make a difference, while delivering increased value to shareholders.

Objectives. The founding of iRobot in 1990 was to become a leader in robotics and provide practical robots for security, research, and home use that would empower end-users to do more inside and outside the home.

Strategies. iRobot began production of robots that facilitated a need within the security and research industry. Through the production of practical robots, iRobot developed its first robotic vacuum cleaner. The success of the Roomba created a unique opportunity to extend consumer value into the home. Deciding to focus exclusively on the consumer market, iRobot divested its security and research business in 2016. iRobot continued its globalization strategy and has developed the 600, 800, and 900 series of Roomba vacuums, Braava automatic floor mopping robots, Mirra pool cleaning robots, and Looj gutter cleaning robots. iRobot estimates an 11 percent product penetration within the United States and will continue to strengthen market capabilities globally to maintain its market-leading position (2018 Annual Report). Along with capitalizing on its market leader position, iRobot will continue to develop its wet floor mopping robot and launch an autonomous robotic lawnmower. With its hundreds of domestic and foreign patents and their special awareness technology, iRobot plans to leverage this into smart home applications.

New Mission Statement

We will continue to advance the industry of practical robotics through innovation and design that inspires end-users and enables them to do more inside and outside the home while increasing brand awareness and shareholder equity.

1. Customers: Who are the firm’s customers? iRobot customers consist of middle to upper-class households. Many iRobot customers are tech-savvy, have smart homes, and those who want to be released from tedious chores.

2. Products or Services: What are the firm’s major products or services? iRobot produces several models of robotic vacuum cleaners as well as floor mopping robots, pool cleaning robots, and a robotic lawnmower. iRobot plans to capitalize on their home mapping technology to enhance the smart home experience.

3. Markets: Geographically, where does the firm compete? The primary location for iRobot has been North America but has strong international brand recognition.

4. Technology: Is the firm technology current? iRobot made a considerable investment in advancing its mapping and navigation as well as user interaction, including cloud and app development. iRobot recently introduced three new connected products with the ability to learn, map, and adapt to a home’s floor plan.

5. Concern for survival, growth, and profitability: Is the firm committed to growth and financial soundness? iRobot plans to leverage opportunities through its growing connected product portfolio through investment in developing technologies and interfaces so that iRobot products provide a convenient, personalized experience.

6. Philosophy: What are the basic beliefs, values, aspirations, and ethical priorities of the firm? iRobot sees its employees as the most important driver of who they are (2018 Annual Report) and continue to invest in training and education. iRobot continues to develop an employee-centered culture that enables them to create and design products that consumers demand.

7. Self-Concept: What is the firm’s distinctive competence or major competitive advantage? iRobot has 460 U.S. patents and more than 800 foreign patents and is viewed by consumers as having innovative, high quality, and premium products (2018 Annual Report).

8. Concern for public image: Is the firm responsive to social, community, and environmental concerns? iRobot develops technology that enables people to do more inside and outside the home through practical robotics. They also continue to develop technology that streamlines a consumer's smart home experience. iRobot also divested its security and military division to focus on products for home use.

9. Concern for employees: Are employees a valuable asset to the firm? iRobot views its employees as the most important asset of the firm and continues to invest in their training and education.

References

iRobot Annual Report and Proxy Statement. (2018). 1-172. Retrieved from https://investor.irobot.com/financial-information/annual-reports

Thompson, A. A., Peteraf, M. A., Gamble, J. E., & Strickland, A. J. (2020). Crafting and executing strategy: The quest for competitive advantage, concepts and cases (22 ed.). New York, NY: McGraw-Hill Education.