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¶ … Systems
Threats
3D Systems has established themselves as a market leader in their industry. However, this industry is still in the introduction phase in the product lifecycle and still has much further to go before it reaches its next stage in the cycle. Being one of the frontrunners can be a tough position. Even though 3D Systems has established themselves, there is always the risk of new entrants. Since the technology is developing quickly and the potential market is huge, then another firm with sufficient resources could enter the market at any time.
Product Life Cycle (Ash, N.d.)
Although 3D Systems has some proprietary features, it is reasonable to suspect that alternative designs could be developed relatively quickly. In fact, there are actually many guides online that show people how to build similar equipment themselves. Although the technology is advanced, there are several manufactures that make components that can be assembled into a working device. Therefore, in the consumer segment, there is definitely the possibility of new entrants stealing market share quickly.
Another threat is that as 3D Systems expands their market share that they do so at a rate that is unsustainable. They must develop at a rate in which they can control quality as well as service. If they expand too quickly then they could lose some of their current clientele if there service levels are not adequate. Thus they should work to balance growth with their internal capabilities and their ability to control their intellectual property. Controlling intellectual property is also a threat because in many Asia Pacific areas intellectual property theft is commonplace manufactures commonly steal designs (University of Oregon Investment Group, 2011).
Works Cited
Ash, F. (N.d.). Product Life Cycle (PLC): Stages, Development, & Process. Retrieved from Write and Writing: http://www.writeawriting.com/business/product-life-cycle-plc-stages-development-process/
University of Oregon Investment Group. (2011, May). 3D Systems Corporation. Retrieved from University of Oregon Investment Group: http://uoinvestmentgroup.org/wp-content/uploads/2011/05/DDD-2.pdf
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