Submitted By:-

1.Sajal Kunal

Sunrise Medical, Inc.’s Wheelchair Sunrise Medical, Inc.’s Wheelchair productsproducts

Sunrise overview..Sunrise overview..1983:- Company was founded by Richard Chandler.

1986:- Started producing Wheelchairs etc.

Starts Acquisitions –

Guardian was acquired

Motion Designs ------ renamed to Quickie

1990 Quickie first launched power wheelchair

1993 Guardian introduced the lightweight standard wheelchair

1999 Richard H. Chandler resigns

2000 Company became private by a $250million deal

Michael N. Hammes was appointed as new CEO

International Business – European Market

Sunrise OverviewSunrise Overview

To improve the lives of the people who use our products.

GoalGoal

To improve peoples lives by creating innovative, high quality products.

MissionMission

Sunrise has manufacturing facilities in the US, Mexico, United Kingdom, Germany, and Spain and distribute products to suppliers in over 90 countries The company has about 4,400 employees.

MarketMarket

Distribution and sales…Distribution and sales…Distribution---manufacturer &

retailer Selling parties w/c involved : Dealers

Physical therapist

Physicians

Patients

Insurance companies

Distribution channels… Distribution channels… Dealers target customer rep. manufactures type of product

new users, quickie, Invacare standard, light weight std

younger active patients ultra light weight std,

power & pediatric wheelchairs

elderly at home or in quickie, Invacare standard, lightweight std

institution guardian ultra light, power &

experienced active patients pediatric wheelchairs

walkers, oxygen respirators

elderly and severely disabled guardian, standard, lightweight std

peoples in hospital Invacare wheelchairs, walkers, bandages, hospital clothes

hospitals furnitures

Rehab suppliers

Rehab suppliers

General HME dealers

General HME dealers

Medical/surgical

distributors

Medical/surgical

distributors

Competitors…Competitors…Everest & Jennings international: Products—wheelchair, respiratory

equipment, beds for Target customers---- elderly and

disabled.Invacare corporation: Products--- wheelchairs, crutches,

walkers, respiratory equipments

Strategy Used by SunriseStrategy Used by SunriseAcquisition & Merger of small

companies.Product Specialist Strategy.Build Customer relationship.Comprehensive management

program.Develop Culture of Sunrise.

Corporate ProgramsCorporate ProgramsCompany’s Incentive Plan.Create Customer advisory panels

and focus groups.Associate Suggestion Program.Gorilla Award.Bonus Program.

Cont……Cont……Pursuit Of Excellence Program:-Corporate ValuesTotal quality managementWorld Class manufacturingSuperior Customer ServiceAssociate Involvement &

recognition

It depends on the patient. Some can use crutches or scooters but many are unable to choose any other way of transportation.

Even the medicine has not found a cure for some disease.

SubstitutesSubstitutes

Moderate Bargaining power of buyers

The inputs are not differentiated and the switching cost of finding a new supplier is low.

SuppliersSuppliers

Low Bargaining power of suppliers

Industry 5 forces analysisIndustry 5 forces analysis

Distribution Channel

Consumers: high switching cost, some buyers cannot choose something else to mobilize.

BuyersBuyers

The industry of wheelchair manufacturing has a high concentration

High prices rivalry and discounts for the distributors

RivalryRivalry

Low Threat of Substitutes

Low Entry Barriers

Low capital requirements in machinery: 1 mil.

Low advertising costs: $100,000

FDA regulations

Fluid access to distribution channels.

No Significant Patents

Entry Entry BarriersBarriers

ROA

-60

-50

-40

-30

-20

-10

0

10

20

1987 1988 1989 1990 1991 1992 1993

YEAR

Everest&JenningsInternationalInvacareCorporationSunrise Medical

Current Ratio

0

0.5

1

1.5

2

2.5

3

3.5

1987 1988 1989 1990 1991 1992 1993

YEAR

Everest&J enningsInternational

InvacareCorporationSunrise Medical

Invacare induced

thelightweig

ht standard

Companies Performance (till Companies Performance (till 1993)1993)

Strong financial structureBase of the M&A

ROA

-20

-15

-10

-5

0

5

10

1994 1995 1996 1997 1998 1999 2000

YEAR

Sunrise Medical

InvacareCorporation

Everest&J enningsInternational

Current Ratio

0

0.5

1

1.5

2

2.5

3

1994 1995 1996 1997 1998 1999 2000

YEAR

Sunrise Medical

InvacareCorporation

Everest&JenningsInternational

Reason1- pre-tax charge

from unusual expense (65.2M)2- severe pricing

pressure

Reason1-Re-

engineeringNet loss: 12M

Companies Performance (till Companies Performance (till 2000)2000)

Reason1-Merger with

Sentient system 2-

Acquisition of three

European-based division

WHEELCHAIR PRODUCT LINEWHEELCHAIR PRODUCT LINE

December 31, 1986, sunrise entered the wheelchair industry through the acquisition of a manufacturer of Ultra light wheelchairs under the Quickie brand name.

In 1992 Guardian introduced a standard wheelchair to complement its line of crutches, walkers, and other products.

Cont…….Cont…….The first major line extension after

the acquisition by Sunrise was the 1987 introduction of lightweight standard models under the Breezy brand name.

In 1990 Quickie entry into the lightweight standard category by extending its Breezy line to include a chrome steel model as well as the older Aluminum model at the same price.

Invacare & SunriseInvacare & SunriseYear Invacare Sunrise

1986 Dec.31 Sunrise acquires Quickie & enters ultralight

1987 Quickie introduces lightweight standard “Breezy” model

1988 Invacare introduces lightweight standard line

Quickie introduces its pediatric line under the “Zippie” brand name

1989 Invacare produce standard chairs & most lightweight standard chair

Quickie introduce its first power model

1990 Invacare enters ultralight by acquiring a firm in Fresno

Quickie introduce a chrome lightweight standard model under the “Breezy” name

1992 Quickie announces new power models

Offering the most innovative products in the marketplace.

New and younger user ,Active patients. Quickie - Lightweight, ultra light, power and sport

wheelchairs.

Current Wheelchair Current Wheelchair BrandBrand

Value-oriented products. For public use, aged people

Guardian -standard wheelchair

Quickie Quickie

Adult Manual Folding $1,300 - 2,850

Power Wheelchairs $4,283 - 13,280

Adult Manual Rigid $1,395 - 3,400

Adult Manual Positioning $2,345 - 3,770

Sports Products $1,150 - 3,299

ZippieZippie

Pediatric Wheelchairs $2,150 – 2,650

GuardianGuardian

Standard Wheelchairs $340 – 1,150

Wheelchairs Product Wheelchairs Product LineLine

Products Price Range Products Price Range ComparisonComparison

$0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000

PriceData from Sunrise, Invacare and Everest & Jennings website

Adult Manual Folding

Pediatric

Adult Manual Rigid

Adult Positioning

Sports Products

Power Wheelchairs

SunriseInvacareE & J

Standard Wheelchair

Growth rate 10%Growth rate 10%

Commodity, growth rate 5%Commodity, growth rate 5%

Advertisement and Advertisement and Promotion Promotion

• Quicke, Invacare, and Everest & Jennings each spent about $100,000 per year in magazine advertisement.

Quicke runs sports days, sport camps, self defense classes and distribute T- shirts.

ManagementManagementBuild Self directed teams.Each teams have sets it own

goals, own reviewed performance, own hiring and firing , and have own quality control procedures.

Team leadership rotated among members every two months.

Monitored team effectiveness through satisfaction surveys

Survey Survey 93% of Associates reported that

moral was good or excellent.92% said they preferred self-

directive teams to the old systems.85% reported satisfaction with pay.39% of Quickie Associates were

women, 41% were minorities and 15% were disabled.

The divisions sponsored partnership program with school to prepare students for jobs.

Corporate Values of Corporate Values of SunriseSunriseProduct SuperiorityServices to customersIndividualismTeamworkPerformanceSocial ResponsibilityCorporate character

QUESTIONS??