Brand Relevance: Making Competitors Irrelevant - always yours

EVALUATION 199
Segway disliked the fact that they could not adjust mail between
stops because two hands were needed to operate the device.
Plus there was no provision for an umbrella if it rained. Police
and security professionals were concerned about the range and
sales to this group was far below expectations. Alternatives like
mountain bikes were cheaper and did not run out of fuel. Other
workers who might have been prospects found that the new
alternative was too much of a change from their existing habits
and processes.
There were a host of customer acceptance issues. Sales to
the general public were offered through Amazon in 2002. One
issue was that some four hours of training were recommended,
which was diffi cult to provide with Amazon ’ s direct channel.
Another was the fact that some states and cities did not allow
the Segway to operate on sidewalks with the argument that it
would be dangerous to walkers, especially those with disabilities,
whereas other localities imposed a speed limit of 8 mph.
The unit ’ s 80 - pound weight was also an issue, but a bigger liability
was the limited range in terms of distance traveled before a
recharge. There was a lack of a critical mass to make the usage
experience widespread and the social endorsement visible.
Finally, the value to those who were unused to such a strange
vehicle was not obvious. Sales never reached the tipping point.
There were marketing issues as well. The fi rm had trouble
keeping top executives. In particular, the top sales slot was
unfi lled at a time when distribution was the key to success.
There may have been some strategic mistakes as well. Holding
off on consumer sales and then relying on Amazon may have
been an error. If Segway had partnered with a fi rm that had
on - the - ground retail presence, such as a car dealer or a major
retailer like Costco or Home Depot or Sears, they might have
created some user proof points.
The Segway fi rm did not give up. They introduced a golf
transport HT in 2004 and a second - generation product line
in 2005 with LeanSteer, whereby the unit could be steered by