The Orthopedic Motor Market: Minnesota Micromotors, Inc. and Brushless Motor Technology

REV: MARCH 2, 2012 The Orthopedic Motor Market: manganese Micro travels, Inc. and Brushless Motor Technology Minnesota Micromotors, Inc. (MM), based in Minneapolis, was a maker of traverseless, direct current (BLDC)1 motors used in orthopedical checkup devices. Devices utilizing MMs motors were typically used by orthopedic surgeons in large bone surgery, reconstructive surgery, trauma surgery, and sports medicate procedures. MM sold approximately 97,000 motors a year and had a 9% share of the $137 million U.S. medical motor grocery store for orthopedic and neurosurgery devices. (See Exhibit 1A.) MM was a department of privately held Fractional Motors Limited, which had revenues of $350 million (just everyplace $12 million, or 3%, generated by MM) and 1,300 employees (45 employed by MM). MMs revenues had been maturement in line with the industry average rate of 5.5% over the prior threeyear period; however, the most recent quarterly fiscal data showed a decline in revenue. Although senior management was pleased that MM had just turned a low-down profit after several years of losses, there was bear on about recent potential market share loss.

The BLDC motors in which MM specialized offered several advantages over brushed DC motors, including greater efficiency and reliability, less noise, longer lifetime (no brush erosion), and relatively lower electromagnetic interference. Given that a BLDC motor required no airflow for cooling, its internal components could be entirely enclosed and protected from dirt. BLDC motors were better suited to applications needing a considerable speed range â€" for example drill systems, used in orthopedic bone surgery that must perform at 10,000 to 95,000 revolutions per minute. Fractional Motors viewed MM as a strategic division in its corporate portfolio because of the long-term growth potential in high-end medical and orthopedic devices markets. The segment of the motor industry in which MM operated was highly competitive, with over 100 participants.... If you want to develop a full essay, order it on our website: Orderessay

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