Name

Sikandar Butt

Roll No

10108018

Section

Align Technology Inc

Issues:
1. Costs are too high and company didn't making profitable business (Average value 1600 $
and the total cost is $1800) that's big issue for the company.
2. Excess capacity. The company is producing 20% excess towards demand. The company
was projecting more product sales of 10, 000 cases each month but basically the cases
each month were 2500. The demand for the product fell less than its production capacity.
3. The orthodontists are not adopting that new product because they were tending to use the
more common technology and in addition they were skilled for standard treatment.
Absolutely no orthodontist would certainly switch by metal braces to be able to Align
technology know-how without quick response.
4. They were having issues in their marketing strategy. They ended up confused throughout
using push vs pull strategy.
5. The company was not focusing on general practitioner. They ended up only training the
orthodontist and general practitioners were entirely ignored. For the reason that total
orthodontists in North America were 8500 and general practitioners were 100000.
6. Lack associated with structure and operational tactic that how it could be run small
business.
7. Distributional channels of the align it mean that orthodontists did not benefits for the
company
8. Wrong sales projection. That is just not matching towards capacity.

Analysis:
Align company cannot carrying out profitable business as a result of Align company
manufacturing cost greater than his selling price that makes company deficit (loss) the cost of the
company would be greater in its manufacturing and full representative cost but what causes the
deficit balance only as a result of miss settlement in the selling price which is the big issue for
the company that they're not actually good in his selling price setting, reason of less price
towards cost which is not ethical for business that is actually greater then it cost (see the exhibit
2) though the actual ability on the customer to spend to his treatment that is greater than $3500
that is traditional way on the customer to greater than Brackets and wire though the company
selling price that is $1600 which is less on the traditional way though the company offering
products that is innovative and invisible it mean that company products is good on the traditional
but the price tag of the company is very low therefore corporation cannot reach from his target
income goals. Company still must differentiate his products towards traditional way and also
need to set the selling price that ought to be greater than corporation cost or getting his target
income margin. And company had to visualize and analyze the spending ability on the customer
to investing in his teeth treatments after which company should selecting the range of the price
tag of his invisible product that included income margin.
Second major problems for the company are orthodontists which were not adopting this kind of
new product simply because they were tending to make use of the traditional technology and so
they were trained for traditional treatment. No orthodontist would swap from metal braces for
you to Align technology without quick response. Orthodontists are certainly not engaged or
fulfilled and taking responsibly on the invisible products for the company and it growth they are
only focused around the earning. Company major distribution channel are the Orthodontists that
were selected well exercise and experience. Orthodontist for his products treatment and his
awareness towards customers but the orthodontists are not efficiently doing work and adopting
the invisible technology that is created problems for the company. Company giving treatment
towards Orthodontist by sales representative which can be giving training and awareness towards
orthodontists about products that are 6400 orthodontists get train on the representative but the
return of cases towards company by the orthodontists were extremely less (See Exhibit 3) that
40% Orthodontist submitted a minimum of one case to this company other 60% orthodontists are

certainly not interested to the invisible products as they are not taking any case for the enviable
company. Therefore company needed to train and engaged his orthodontists for his products
distribution to the customers. In this case company should used push strategy by the
orthodontists because without this (orthodontists) corporation cannot make awareness towards
customer and push customer to make use of this product that is useful for the traditional and
necessary for the customers.

Options:
As well as company also considered GP (general practicing) that were also make awareness for
the products and for its treatment which may be lead to the less cost and readily available for the
customer at anywhere (See Exhibit 5). In this way company can get high profit margin from the
GP because there charge or treatment cost are very low. And company can push his products
towards the customer at cheaper cost with high profit margin as compare towards the
orthodontists. In Strategy Corporation sales forecasting method furthermore not well, because
(see exhibit 4) firm forecasting method or forecast value is more than its capacity which is
irrelevant and wrong for the company estimated value that is greatly insufficient and cannot
match how the actual capacity see 2000 year capacity that is 6466 case but the business
forecasting that it would likely reached at 8122 cases but the actual cases occur which have been
3322 case which included huge difference between this specific forecast and capacity and also
actual sales, and how company predicting his sales with overtime (Wages) but the company
actual capacity cannot covered or reached towards the actual sales.
Align company have several to recover his benefit margin, company should minimized his cost
either it will reduced manufacturing cost it become through reduced his capacity towards the
actual demand that way extra charged and extremely efficient use of equipment but the demand
is low that may created problem for firm cost to reduced this provider can recovered his benefit
margin, and other way is that when the company cannot decrease his capacity according to the
demand then company ought to sell his products immediately after recovering total cost and also
included profit margin it can be possible that because traditional paying for teeth treatment that
were to high ranging from ( 3000 to 5000) it mean that it should be done.

Decisions& Recommendation:
Most efficacies in profit margin is that company should make or adjusted selling price which is
recovering profit because it would be done, people are able to pay extra or high price for the new
technology (invisible).
In orthodontists, alternative options are GP which can be penetrate our products to market and
also increased our sales with low price it mean that company should also need to train GP for his
products that could be benefits for the company major problems.
Exhibit 1:

Exhibit 2:
Total target market= 200 million
2000000 are those whose doing some treatment with his teeth
Aggregate spending on his teeth is 7 Billion
It means that actual spending on his teeth per person that is ranged from 3500 to 4000 dollars.
Exhibit 3:
Target train orthodontists =6000
But the Sales representative actually trading 6400 Orthodontists
Case submissions by the orthodontist are only 2600 orthodontists

That is 40% return from the orthodontists that is very low.

Exhibits 4:
Forecast sales, and Capacity

2000

2001

Sales forecast

8133

13500

Actual sales

3322

7312

capacity

6466

10400

Exhibit 5:
Orthodontist result verses general practicing
Orthodontists

GP

No Of practitioners

8500

100000

Income

300000

125000

Working hours in week

34

39

Care result

Low

high