Innovation: Align Technology

Innovation: Align Technology

Executive Summary

Companies involved in the production of 3D digital scanners and clear aligners that are used in orthodontics have been on the rise. Align Technology company has been trending due to the invention of the first digital technology to cure malocclusions. Align Technology company has been involved in an agreement contract with a company known as SmileDirectClub, where they later had a falling out due to some errors made by Align Technology. SmileDirectClub later became a stiff competitor of Align alongside other competitors. The company’s CEO has been trying to find alternatives course of actions to make the company retain its position in the dental market after the fallout. The innovation dilemma that the company is trapped in can be overcome by applying unique strategies and innovations. The recommendations given will help the company face and solve its problems and become the undisputed leader of the “clear teeth alignment” industry.

Innovation: Align Technology

Introduction

Manufacturing is the process of product production for sale using machines, tools, or biological processing. Manufacturing companies have increased in the market, creating more opportunities for people and businesses to venture. Align Technology is a manufacturing company that deals in the production of clear aligners and 3D digital scanners that are mostly used in orthodontics (Jordan, 2019). The company, through its management, is embarked on a move to change the lives of people using the aligners. The company is using its capabilities to transform and reinvent the way orthodontic and restorative treatments are presented and delivered to people around the world. Orthodontic treatments improve dental health by providing a look that is pleasant to people. The teeth are easier to clean and maintain by solving the problem of tooth decay. The company’s Chief Executive Officer (CEO) Joe Hogan has decided to pave the way for digital development in the dentist world. Align Technology has redefined orthodontics’ business by clearing the way for the digital interruption in the dental industry.

Analysis

Competition

Competitors are almost unavoidable in the business world since any presented opportunity attracts more investors and businesses. Align Technology faces competition from other companies producing the same products as SmileDirectClub, Integra, Joerns, and SPANAmerica companies (Symbol & Year, 2017). Align is lately being affected by its competitors, and its operations are decreasing due to the increased competition in the market (Siegel & Robinson, 2019). The opponents are making Align Technology change its market structure, performance, conduct, and culture, which is more expensive for them (Kuo, 2017). Competitors are flooding the market with cheaper products and sometimes selling low-quality products. The convinced customers are finding their way out of Align products for the new entrants (Johal, Alyaqoobi, Patel, & Cox, 2015). The new entrants have adequate time to sell their products before Align Technologies revises its strategic plans.

SmileDirectClub and Align Technology were in a partnership business where they had started treating malocclusion with transparent retainers. The two companies had a falling out where SmileDirectClub accused Align Technology of opening Invisalign stores without their knowledge. SmileDirectClub filed a case, and Align Technology was ordered to close the stores. The case was a blow to the Align Technology company, but that was expected since they did not follow the agreement plan between them. Align Technology CEO is one of the most talented minds in the company since he has proven to employ strategies that help the company compete against its competitors in the dentist market.

The company has four main strategies that are international expansion, Ortho-penetration, general practitioner growth, and stopping the leaky bucket (Kravitz & Bowman, 2016). The main problem with the company’s commercial strategies is execution (Dodgson, Gann, & Salter, 2008). The company has been improperly executing the strategy leading to a lack of objectives for employees, lack of structure, weak communication lines, and improper resource allocation. The company’s competition increased after they fell out with their partners, SmileDirectClub company. SmileDirectClub devised their method of treating malocclusions and started selling it into the market (Kuo, 2016). Other companies used their technologies and created cheap technologies serving the same purposes as Align Technology.

Current Alternatives of Action

Align Technology company is in the middle of the innovator dilemma since its technology is making them fail. Malocclusion treatment has been the best-selling strategy for Align Technology (Andiappan, Gao, Bernabé, Kandala, & Donaldson, 2015). The company invented the treatment for malocclusions, yet the technology is not helping them increase their sales but losing their customers to competitors (Salleh & Janczewski, 2016). The competitors have invented their technologies that have made Align Technology lose. The company can still react by improvising alternative causes of actions to help them take back their position in the market (Morton et al., 2015). The company should practice multiple brands that will help it in retaining its customers and increase sales. The company should also equip their marketing team with resources to help maintain their customers, attract new customers, and encourage others that their technology is defect-free (Bocken, De Pauw, Bakker, & van der Grinten, 2016). The marketing team should be concerned with both the local and global customers to transform the practice of dentistry.

Errors from their Agreement Contract

During the fall out with SmileDirectClub, Align Technology was to blame since it had made some errors against their agreement. Align Technology had breached the non-compete provision applicable to the members of SmileDirectClub. The company had also misused confidential information of their partners that ended up violating the fiduciary duties of SmileDirectClub.Furthermore, Align had also opened 12 Invisalign stores in significant cities, intending to grow the direct-to-consumer segment of their business. The errors mentioned earlier that Align Technology committed were not approved by any member of SmileDirectClub company; thus, legal arbitration was sought (Lajoie & Giasson, 2018). Align Technology was ordered to close down all the 12 stores and that it should not be involved in any confidential information concerning SmileDirectClub.

Solutions and Recommendations

The best recommendation for Align Technologies is to learn the business. The CEO had some thoughts about the business and the market at large and came up with the strategy “to learn the business” Matt, Hess, & Benlian, 2015). The company is among the top technological companies, thus should apply strategies to help the company achieve its goals and objectives (Somasundaram et al., 2017). The company depends on customers for its products and services; thus should identify the customer gap and give a solution. The solution will be achieved if the company has adequate information about the market and its customers (Yancey & Long, 2018). Since the company has an established technology business, it will be easier to take their position back.

Major innovation strategies should be applied to help the company regain its customers. The company can still innovate other ways of dealing and treating dental problems that other companies have not yet acknowledged. Innovation will help dictate the new price in the market, and the move will force other firms to either adapt to the latest technology or close down (Clarysse & Kiefer, 2011). Innovation might lead to companies closing down since they are more expensive to install and apply (Saebi & Foss, 2015). The new technology will help Align Technologies to improve their customer services as they will be forced to advertise it. The marketing team will have to be very convincing for the customer to buy the technology and leave other companies, thus conquering the dental industry.

In cases where the company might feel the need to form merges or agreements with other companies, they should ensure that every employee is aware of the terms of the contract (Tsichlaki, Chin, Pandis, & Fleming, 2016). The company should not carry out any other businesses without the consultation of the partners. A strategic partnership can he the company meet its goals and outrun their competitors if they agree to work towards achieving a strategic goal (Prajogo, 2016). The partnership will help the company block competitors through an exclusive contract, increase customer loyalty, and create a new market for its products. The weak aspects of the business might be strengthened through the formation of mergers or partnerships and become a leader of the precise teeth alignment industry.

Conclusion

Align Technology is among the few technology companies that have redefined orthodontics’ business by clearing the way for the digital interruption in the dental industry. Competitors play an essential role in ensuring that the monopoly business is dealt with and that consumers are protected. Different companies producing similar products should be encouraged to give customers a wide variety of products to choose from. Companies should try to use improved strategies to compete and fit in the market by fighting and providing quality products for their customers. Competition can result to the fall of a company if the operation strategies used are not meeting customer demands. Align Technology company should use the above-discussed recommendations to sort out the problems that are facing the company and be the leader in the dental industry.

References

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