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Case Study: ABii Robot
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August 15, 2021
Table of Contents Executive Summary 3 Country and Product Background 3 Macro Environment 4 Demographic 4 Pestle Analysis 4 Conclusion 7 Recommendations 8 Reference: 10
Executive Summary
This case study explores details and highlights of certain challenges and performance indicators experienced by Van Robotics new development ABii Tutor. This report covers material and different topics to come to conclusive learnings on ABii’s business. This report will cover Van Robotics new product ABii PESTLE analysis of problems and issues that the company could potentially face. The goal of this case study is to understand and examine whether the robotics company’s innovation will evolve with the times, be a great investment, and sustain profits for an even brighter future for the children of the world.
Country and Product Background
The ABii robot was created by Laura Boccanfuso of Van Robotics in Columbia, South Carolina. The tutoring robot helps K-5th grade students improve their math and reading skills by interaction throughout online lessons. Van Robotics created a tool that’s been named one of the best inventions of 2020: “A kid-friendly robot that climbed to new levels of success as a result of the coronavirus pandemic.” ABii Robot initial strategy is to offer efforts to close the student achievement gap. ABii Robot did $180,000 in sales in the first 4.5 months of operation as a new-to-market product. An Article from Omdia states, “worldwide consumer robot revenue will grow from $5.6 billion in 2018 to $19 billion in 2025, at a CAGR of 19.1%.” The robotics company, Van Robotics, has made an innovative product to evolve with the current transition to virtual learning due to the global pandemic, but their main focus is still providing students K-5 an educational resource.
ABii is a robot tutor aimed at closing the math and reading proficiency gap for K-5 students. The product is designed to work with teachers and parent to help provide additional assistance to students outside of school. There are so many children now learning from home. This robot tutor is perfect for students transitioning from in-person to virtual learning. Children are known to gravitate towards electronics. This product without a doubt will do well.
Macro Environment
The macro environment factors of foreign exchange rate, economic growth rate and inflation rate play into the economic cycle of supply and demand that ABii must watch closely. ABii can use these factors as tools to analyze how much consumers are going to spend based on their wage class and growth trajectory of the industry. Culture is a big word with a great amount of weight when it comes to how a company is socially. This product pricing will be sold at an affordable price so the tutoring robot can be in the schools and households where it’s needed.
Demographic
The ABii Robot demographic are investors, U.S board of education, school districts, tutoring companies, and children of the ages 5 through 13. Van Robotics’s ABii Robot is the first robot to market K-5th grade students using national standards that are aligned with reading and math lessons. Primarily our demographic will be low- and middle-income families, along with school districts. We're aware families of a lower income class lack the resources of someone in a higher income class. We want our product to reach where it's needed and eventually provided by the school. Van Robotics international demographic would depend on the grade level curriculum for that specific country and or foreign city.
Pestle Analysis
The PESTLE analysis below will provide details on the threats, opportunities, and factors that Van Robotics’s ABii Robot could face. The macro environment is a wide set of economic conditions that are specific within an industry in an economy. The PESTLE analysis is used to identify the different forces that affect along with makes up an organization in its macro environment. PESTLE provides an analysis of an organization’s social, technological, political, economic legal, and environmental factors.
Van Robotics runs their robotics operation in the U.S with aspirations of going international. Van Robotics are aware that of the different local governing systems where they must obey all the rules, regulations, safety guidelines and the geographic location posing different political climates. The political factors are wage legislation, competition regulation, and anti- trust laws. Van Robotics has to monitor the previously stated factors in order to be able to serve K-5TH graders domestically and internationally. Van robotics goal is to achieve diversification in the systematic risks of political environment.
The macro environment factors of inflation rate and economic growth rate incorporate into the economic cycle of supply and demand that Van Robotics must monitor frequently. The micro-environment factors such as competitive norms impact the competitive advantage. Van Robotics can use the factors as tools to observe which consumers segments are purchasing and how much are they spending based on the growth trajectory. The impact can affect Van Robotics overall profitability and competitive advantage. The impact can also result into Van Robotics strategy and competitive landscape to be analyzed and/or modified. The industry’s economic indicators to determine what strategy needs to be modified to adapt to the curriculum expectation domestically and internationally. Van Robotics must be able to quickly adapt to a forever evolving curriculum to lead in its robotic industry.
Culture is influential when it involves how a company is projected socially. In the business world, it’s essential that a company’s social culture plays a huge role in the positivity and productivity of its product. A culture involves the values and attitudes among a group of people. The marketers at Van Robotics can use the factors of culture roles, demographics, education, and standards to design an effective strategy to increase positive feedback for K-5th graders during the pandemic.
Technology is forever evolving and so is the ABii Robot. The robotics industry has reached an all-time in demand due to the global pandemic. ABii Robot being a part of the robotics industry has been able to serve the greater good of K-5th graders. Van Robotics has mastered education and robotics to help bridge the gap in K-5th graders worldwide. The robotics company understands how beneficial the advancement of technology is and how it enables business growth. Van Robotics has produced a user-friendly website to inform potential consumers and investors on the ABii Robot. There are a few technological factors to consider: 1. impact of innovation 2. value chain 3. capturing the cost structure of technology advances. Understanding the previously stated factors will result into the success or failure of Van Robotics potential to hit quotas.
It’s important the robotics industry, in particular Van Robotics, understands the environmental enormities effects that impact the company and its cash flow. The environmental factors are air, water, pollution, and waste management. Van Robotics must monitor certain factors to determine which approach should be taken when moving forward.
Van Robotics is a robotics company located in the United States of America with aspirations of going international. Some legal factors Van Robotics must know before making the next step being aware of the local governments’ patents/copyright laws, taxes, rules and regulations, foreign exchange, and local laws of the countries where the ABii will be accessible. Van Robotics should carefully evaluate each legal factor before making a decision to go international.
Van Robotics established PESTLE factors, one may conclude of the threats and opportunities the company could potentially face. Van Robotics is the 1st company to produce a product of its technological nature to serve students K-5th grade. The robotics company getting ahead of all opportunities that could potentially increase their brand positivity. Along with, the support of their stakeholders. Implementing strategies that will seek student achievement across an educational spectrum, global market forces, along with bridging the gap can maximize the growth of consumers. Van Robotics has many strengths compared to its weaknesses that are present throughout the PESTLE chart. The robotics company should consider using a few of the strategies to further expand the competitive gap. Van Robotics’s ABii Robot can rise student engagement. Positive student engagement is what will increase revenue and profit along with help achieve their ultimate goal of providing a resource to help student academic achievement.
Conclusion
Van Robotics’s ABii is a robot tutor aimed to close the reading and math proficiency gap for K-5th grade students. The product is designed to work with teachers and parent to help provide additional assistance to students outside of school. There are so many children now learning from home. This robot tutor is perfect for students transitioning from in-person to virtual learning. Children are known to gravitate towards electronics. ABii Robot initial strategy is to offer efforts to close the student achievement gap. ABii robot did $180,000 in sales in the first 4.5 months of operation as a new-to-market product. An Article from Omdia states, “worldwide consumer robot revenue will grow from $5.6 billion in 2018 to $19 billion in 2025, at a CAGR of 19.1%.” The robotics company, Van Robotics, has made an innovative robot to evolve with the current transition to virtual learning due to the global pandemic, but their main focus is still providing students K-5 an educational resource. The ABii Tutoring Robot without a doubt will do well in the homes of children.
Recommendations
It is recommended that Van Robotics tackle the U.S market before going international. It’s important the robotics company do several case studies on K-5th graders and thoroughly analyze students specifically those under the proficiency gap who were or currently enrolled in virtually learning. The robotics company has already conducted a pilot with 4 schools, reporti states “67% of students have improved by 34% after only 3 sessions with the robot.” Following this success, received a Department of Education grant to put their robots in 16 school districts serving over 1000 students. The recommendation in moving forward with Van Robotics’s ABii Robot is influenced by its social responsibility, easily assessable target market, the managerial behavior, culture, and marketing strategy.
The social responsibility we're going to pursue is making our product affordable and appealing for all social classes. Primarily our target market will be low- and middle-income families and school districts. We're aware families of a lower income class lack the resources of someone in a higher income class. We want our product to reach where it's needed.
The impact the managerial behavior the country has on the ABii Robot is When it comes to culture, the United States is a melting pot. The managerial behavior we will need to pursue in a cultural sector is one that is a free and strong. A free and strong cultural sector will promote the values and rights such as diversity, freedom of expression, and debate about needs in society. ABii’s culture will ensure unity, equality, resourcefulness, debate and dialogue, and influences identity. It is important that our product nation-building for peace and reconciliation. The steps taken to manage a cross-cultural team are the following: overcome language and cultural barriers, plan projects around different time zones, being open to all cultures and their differences, avoid stereotypes, and having a diverse team.
An appropriate marketing strategy to purse would be customization. The tutoring robot is created to serve the academic needs of K-5th grade students. Pricing is the most important element of our marketing mix. Pricing is important because it defines the value that our product is worth for us to make and for our customers to use. It is the tangible price point to let customers know whether it is worth their time and investment. The pricing strategies shape the overall profitability for the future. The biggest challenge in managing our international operation outside of establishing would be the operation of potential dispersed resources, varied cost structure, cultural differences and governmental factors all provide international management obstacles.
An investment in Van Robotics’s ABii will be the best move for the firm to take. This robot tutor has been approved by the U.S Board of Education and soon will be accessible to all grade school students. It’s important we take this opportunity to invest rather wait until it’s too late.
Reference:
“ABii by Van Robotics, Inc.” StartEngine, www.startengine.com/abii.
“About 4.” ABii's World, www.smartrobottutor.com/about.
Robotic - Ed.gov Search Results, search.usa.gov/search?utf8=%E2%9C%93&affiliate=ed.gov&query=robotic.
“Technology Research That Connects the Dots.” Omdia, omdia.tech.informa.com/.
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