What’s good about Ortho500?

The new Ortho500 printed custom exoskeletal orthopedic splints, braces, and casts that conformed
to a patient’s body. Custom supports reduced the discomfort, chafing, and soreness that plagued
patients who used standard one-size-fits-all braces.

higher quality and technical sophistication than those produced by its competitors; and clients paid a
premium price for these benefits.

Goal:

The company wanted to establish an early U.S. presence in the bracing market and eventually hoped
to expand internationally. Willis was not convinced that FormPrint’s existing sales team was the best
channel to achieve Ortho500’s strategy, which was to establish a footprint ahead of competition in
order to become the U.S. market leader in exoskeletal bracing within three years.

Instead, FormPrint could use commission based Independent Sales Representatives (ISRs). Turnover
in ISR organizations was high, however, and ISRs usually had less orthopedic knowledge than did
FormPrint’s salespeople. Would the effort required to manage and educate ISRs negate their
potential sales benefit?

The 3D technology for orthopedics is rapidly improving and decreasing in price as competition gets
fiercer. FormPrint has long based its value proposition and approach on selling best-inclass product
performance at a premium price. The Ortho500 is different, and it gives us a chance to establish a
position in what’s likely to be a substantially larger market segment in the U.S. in the future.

There are different opinions about how we should sell the Ortho500. I need you to figure out which
sales strategy we should pursue and the implementation requirements for the chosen path. Rising
costs have put financial pressures on the company. The ramifications of a failed Ortho500 launch are
serious and may include both compensation and staff reductions for your division.

Risks for the healthcare segment included patient safety and future regulations (including FDA
approval for 3D-printed implants).

Purchase in hospitals - In hospitals, interest in procuring a 3D printer typically began with an

orthopedic surgeon’s request to expand existing hospital services and/or embrace a technology
upgrade.

Abbot attributed the slowdown in his division to several factors: increased competition for high end
printing systems; saturation of auditory and dental markets; and uncertainty about the effects of
universal health care on hospital and physician spending budgets. To control costs, he had instituted
a hiring freeze through 2014.

The Ortho500 was designed to be functionally simple and easy to use. It was much smaller and more
portable than other 3D printing systems. Product demonstrations were straightforward and could be
conducted by ISRs with basic training in product functionality and use.