With the development of 3D Printing, HP is accelerating its digital and technology impacts to many business, especially in the field of product prototyping. HP recently developed 3D Jet Fusion printing, which allows x10 faster and high quality material pressing. It is capable of printing different alloys, including metal, gold, plastic, and porcelain.
With new technology, HP needs to understand the 3D Printing industry and identify new ways to generate revenue, along with identifying risks. It needs to identify practical ways to deal with both supply chain management and logistics. This slides aim at showing new idea on building go-to-market strategy for HP 3D Printing.
3. PwC
Situation: Dynamic Printing & PC Market
Demand for
Personal
Computers and
Printers
Data Storage and
Technology
Services
1.6%
2.0%
4. PwC
Dealing with Declining Business
Do:
Decrease Variable Costs
Sustain market share
growth
❏ Shift emphasis from equipment sales
to providing solutions
❏ Improve PC service quality
❏ Invest in external innovators
❏ Invest in internal innovators; focus on
3D printing
Don’t:
Race to the bottom
5. PwC
Market Entry Strategy: Buy Shapeways
M&A of Shapeways: Market
Leading B2C 3D printing
company
❏ Firm value less than $200
million
❏ Large customer base
❏ Leverage B2C distribution
channels & in-house talent
6. PwC
Growth Area: Shift to service orientation
❏ PC market is shrinking but no substitute has emerged
❏ Device-as-a-service (DaaS) for consumers: rent not
buy
❏ Positioning: Micro-customize (e.g. Stanford Biology
major PC build)
8. PwC
Recommendation: 3D Printing Fulfillment
Process Flow
❏ Centralized 3D print shops serving
anyone
❏ Drop barrier to entry: Try it!
❏ Trained production staff,
not confused customer
❏ UPS fulfillment (HP
Converged Infrastructure)
10. PwC
Go-to-Market Strategy: DaaS for Consumers
❏ Green marketing
❏ Trade in for lease to get “new”
❏ E -recycling
❏ Co-working spaces, university
start-up centers (Purdue
Foundry)
COLLABORATE
Source: fashionforwardtrends
11. PwC
Go-to-Market Strategy: Kinko’s-in-a-box
❏ Visibility to consumers (e.g. next to a Redbox)
❏ Road warriors (e.g. airport, hotel lobbies)
❏ Establish relationships with big retailers (e.g. Kroger, Walmart)
12. PwC
Go-to-Market Strategy: 3D Fulfillment Centers
❏ Do a Deal with UPS
❏ Do a Deal with producers of equipment and chemical processes
(e.g. Carbon and Renishaw)
❏ Implement Data-Driven Marketing
17. PwC
Appendix 2 - Shapeways’ Company Information
Year Found: 2007
HQ: NY, United States
Revenue Growth Rate: 40.5% (1 year)
Revenue Growth Rate: 75.5% ( 3 year
CAGR)
Total Funding Raised: $77,500,000
Shapeways is the leading 3D personalized
custom printing service company. It can make
3D Printing using aluminum, plastic, metal, and
porcelain consumer goods on-demand through
online 3D model designs.
Shapeways is the spin-off of Royal Philips
Electronics. (Website: www.shapeways.com )
* Shapeways, Inc. fiscal year end: 12/31
18. PwC
Appendix 3 - Shapeways’ Financial Information
Source: privco.com
26. PwC
Appendix 9 – Estimated Price Computation
Estimated Variable Cost HP FDM/SLS
Nylon (Polyamide) $1.82 $3.63
ABS $3.25 $6.50
Stainless Steel $120.11 $240.21
Gold Plated Stainless Steel $30.49 $60.97
Titanium $131.75 $263.50
Ceramic $2.22 $4.43
Source: 3dprintingpricecheck.com, hp.com
Following are the most commonly used raw materials for 3D Printing.
27. PwC Case Competition -
Purdue University
Contact Details
Joe Kappock - tkappock@purdue.edu
Daniel Kim - kim1964@purdue.edu
Sari Narciso - snarciso@purdue.edu
Shruti Vishwakarma - svishwak@purdue.edu