using 3d printing as innovative technology to create ... · pdf file3d printing as innovative...

3D PRINTING AS INNOVATIVE TECHNOLOGY TO CREATE

BUSINESS OPPORTUNITY IN A SMALL ECONOMY MARKET:

THE CASE OF BAHRAIN

Supervisor: Prof Mukhtar Al Hashimi

Student : Mr Mohamed Huwaidi

Contact: [email protected]

17298999 Ext. 8563

MBA Dissertation Project

mailto:[email protected]

1.1. Introduction

Chapter 1

• The recent new hype of using 3D printing

technology resulted in rapid technological

development and new business opportunities.

• 3D printing is an old method of manufacturing

materials, this sector experiencer big growth and

estimated that 3D printing sector in US will be worth

more than $7.5 billion by 2020 according to

McKinsey (2014).

• In the Middle East and in small markets like Bahrain,

special considerations need to be taken for the type

of 3D printing application that can be implemented

profitably in this new market.

MakerBot 3D Printer

1.2. Research Problems

• To make a business opportunity using 3D printing technology.

Issues with 3D printing business were clarified in this research

to create a business plan containing following aspects:

• Feasibility of 3D printing in the context of Bahrain in

terms of the selected product categories

• The Market Research of 3D printing in the context of

Bahrain in terms of the selected product categories.

• Implementation plan for 3D printing business based on

the results of the marketing and financial studies of the

research.

Chapter 1

1.4. Research Objectives

1. To carry out an exploratory research on the field of 3D printingbusiness.

2. To find out the potential 3D printing product category bysearching and analyzing the available 3D printing solutions.

3. To identify the business module which is suitable for 3D printingbusiness in Bahrain.

4. To assess the feasibility of the selected product categories andbusiness module.

5. To analyze the market potential and demand of the selectedproduct categories by using the questionnaire tool with theuse of a modified conjoint analysis technique.

6. To propose a suitable implementation plan for the selectedbusiness model.

Chapter 1

1.7. Significance of the Study

• Research This study will be one of the first studies in the field of

3D printing business in GCC and will provide the researcher with

condensed knowledge about 3D printing technologies and its

application.

• Business Entrepreneurs and Business Students. The study will

provide insights understanding of 3D printing processes and

business models applicable for Bahrain market

1.8. limitation

• One of the limitations of this study is that the area of

3D printing was very broad and there are very limited

studies on 3D printing marketing and business

implementation (Mellor, 2014).

• Another limitation of the study is the sample size and

some aspects of data collection.

Chapter 1

Journey

Additive Manufacturing for Business Leaders

GITEX 2015 3D Print Show

Academic articles

Interview with

Business experts Testing 3D Scanning

Questionnaire tool

Chapter 2: Literature Review

Figure 2.1 Literature Review Framework

2.1. 3D Printing Profile

• The 3D printing or Additive Manufacturing

(AM) is based on creating objects based on

CAD model. It builds layer over layer in order

to achieve the final shape using different

materials like plastic, metal, and ceramic.

• ASTM include seven additive manufacturing

methods which are Binder Jetting, Directed

Energy Deposition, Material Extrusion,

Material Jetting, Powder Bed Fusion, Sheet

Lamination, Vat Photopolymerization

(Thomas & Gilbert, 2014). Fig1. 3D Printing Process𝟏

1.Source: http://3dprintingindustry.com/3d-printing-basics-free-beginners-guide/technology/

Chapter 2

2.6. Cases of 3D Printing Business

Figure 2.18 3D printed castable impeller

(Envisiontec, 2014)Figure 2.19 Small Prototype for marketing sample

(Stratasys, 2014)Figure 2.20 3D printed robotic arm

(Stratasys, 2014)

Figure 2.21 Educational printed module

(Stratasys, 2014)Figure 2.22 A 5 inch human body print (My 3D

gift, 2014)

Figure 2.23 Envision Tec printer and Jewelry

Wax module (Envisiontec, 2014)

Chapter 2

2.7. Literature Contribution

• 3D printing profile, capabilities and limitations

• Customer preferences and attitude for each

product category

• The cost of 3D printing using deferent martials

and methods

• The case study section provide more in depth

understanding of 3D printing business

applications.

• The literature knowledge used to build up

business strategy for small business start up

were highlighted in literature.

Chapter 2

3D printed Head

Chapter 3: Research Method

Figure 3.1 Research Methodology Framework

Chapter 4: Feasibility Study

Figure 4.1 Feasibility Study Framework

• The 3D product survey, which was conducted by theresearcher on 132 web site and organization, to classifythe 3D products available in the global market intocategories Table 4.2.

• It is recommended to start from the e-commercebusiness module scenario (online business store), andapproach to the small business center in the nextbusiness stages.

4.2. 3D Printing Business Description and

Product Identification

Product CategorySegment

serves

Product or

service

Printer

required1 Gift and Accessories B2B and B2C Product FDM Printer2 Home Decoration B2C Product FDM Printer3 Figurine B2C Product SLS Printer4 Architecture Module B2B Product and Service SLS Printer5 Jewelry Model B2B and B2C Product and Service Jet Wax Printer6 Mobile accessories B2C Product SLA or Polyjet

Table 4.2 The Selected Product and Services

Chapter 4

4.5. Market Feasibility

Chapter 4

Table 4.6 Business to Consumer Segmentation

Figure 4.3 Examples of market needs

Figure 4.5 Strategic Group Map

• Market Needs

• Market Segmentation

• Competitors Analysis

4.7. Technical Feasibility

Figure 4.5 The Paper Based Printing Process

(Mcor Technologies, 2014)

Figure 4.6 FDM Printing Process (ultimaker.com, 2015)

Figure 4.7 SLS Technology Printing Process (3D Systems, 2015)

Tangible needs Estimated cost Estimated arrival

time

1 3D paper printer MCOR

300+

(18000 BD) first year

printing will be

outsourced

3 – 6 months

1 3D Systems ProJet X60 Outsourced printing in stage one

13D systems Projet 1200 Outsourced printing in stage one

23D printers Makerbot and

Utimaker

1500 BD1 month

1scanner 3D systems brand 500 BD

1 month

1professional scanner (6000 BD) will be purchased

at later stage2 month

8Filament 120 BD

1 month

1Software license 100 BD

-

1 Office equipment (PC +

printer + IPAD)

500 BD -

initial costs for stage one 2720 BD

Second stage costs 24,000 BD

Table 4.9 The Required Facilities For Business

Chapter 4

4.8. Financial Feasibility

Chapter 4

Table 4.1 Revenue Forecasts Summary

0

20000

40000

60000

80000

Year 1 Year 2 Year 3

Re

ven

ue

in B

D

Revenue per Year

3D Printing Revenue Forecast

Figure 4.7 3D Printing Revenue Forecasts

The top-down approach used to estimate the business revenue

forecast.

According to Mars (2011) the module is based on four steps:

estimation of market potential, determination of adoption rate,

prediction of market share, and development of revenue scenarios.

4.8. Financial Feasibility

Breakeven summaryBEP Unit BEP

Unit / month

BD

1 Gift and Accessories 29 875

2 Home Decoration 29 875

3 Figurine 53 3200

4 Architecture Module 3 1667

5 Jewelry Model 24 1220

6 Mobile Accessories 70 1050

Figure 4.8 BEP for Gift and accessories

Figure 4.9 BEP for Home decoration

Table 4.15 Breakeven summary

Operating Income Year 1 Year 2 Year 3

Revenues 24140 46940 61160

Cost of revenues 14194 24628 31900

Gross profit 9946 22312 29260

%Gross profit 41% 48% 48%

Operating expense

sales and marketing 1200 1200 1200

General and Admin 7200 7200 7200

Startup Expense Y1 2720



Total 11120 26400 23400

Operating income -1174 -4088 5860

Table 4.4 operating Income Table

Chapter 4

Chapter Summary

Chapter 4

• The Gift and Accessories, Home Decoration, Figurine, Architecture Module, Jewelry Model and Mobile accessories product category were proposed.

• The online store business module selected to reduce the overhead cost for the new startup.

• The need for both enterprise and individual customers were addressed.

• First mover innovative business in Bahrain market can gain benefit but will be threaded from the new entrant.

• The breakeven point for the selected product category varies from 3 to 70 item per month.

3D Printed Jewelry

Chapter 5: Market Research

Figure 5.1 Market Research Framework

5.2. Demographic Profile

Demographic Categories Frequency Percentage (%)

Gender

Male 120 53.6

Female 104 46.4

Age

15-20 35 15.6

21-30 97 43.3

31-40 60 26.8

41-50 24 10.7

51-60 8 3.6

Civil Status

Single 108 48.2

Married 116 51.8

Education

Secondary 68 30.4

Diploma 28 12.5

Bachelors 104 46.4

Masters 24 10.7

Table 5.1 Demographic Profile of the Respondents (collected in mid 2015)

Chapter 5

A 3D Printed Family Figurine

5.3. Consumer Behavior Towards 3D Product Purchase

Product Categories Weekly

%

Monthly

%

Quarterly

%

Semi-

Annual %

Yearly

%

Never

%

Gifts and Accessories 5.4 33.9 30.4 17.9 10.7 1.8

Home Decorations 1.8 5.4 19.6 21.4 35.7 16.1

Mobile Accessories 7.1 14.3 19.6 16.1 33.9 8.9

Jewelry 8.9 12.5 21.4 14.3 25 17.9

Table 5.2 Consumer’s Actual Behaviors towards the Different Selected Products

Consumer’s behaviors towards the different selected four products

category measured. However, the actual behavior for Architectural

module and Figurine was not measured because the product does not

exist in the local market of Bahrain.

Chapter 5

5.4. Factors Affecting Consumers’

Purchase of the Products

• Figures below presents the factors perceived by theconsumer-respondents that are likely to affect theirdecision of purchasing the six product categoriesspecified in this research. Preferences

0 1 2 3 4 5

Price and Affordability

Design of the Product

Color of the Product

Durability of the Product

Approval of Friends and Family

Preferences of Gifts and Accessories

3 3.2 3.4 3.6 3.8 4 4.2






Preferences of Home Decoration

Legend: 1.0-1.5 – not preferred, 1.6-2.5.- less preferred, 2.6-3.5 – moderately

preferred, 3.6-4.5 – preferred, 4.6-5.0 – highly preferred.

Chapter 5

Mean Score Mean Score

5.4. Factors Affecting Consumers’ Purchase of

the Products

0 1 2 3 4






Size of the Product

Preferences of Figurine

0 1 2 3 4 5






Technology of the Product

Preferences of Mobile Accessories

3 3.2 3.4 3.6 3.8





Customer Demand

Technology of the Product

Preferences of Architectural Models

0 1 2 3 4 5





Popularity

Material Quality


Preferences of Jewelry Module

Chapter 5



Chapter Summary

• Most consumers tend to purchase the three productcategory in yearly bases except for Gifts andAccessories consumers purchased them in monthlybases (33%).

• The design of product and price and affordability arethe highly Preferred factors affecting the purchasingdecision of the participated consumers.

• Production using 3D printing provided moreadvantage over the traditional method for customersappreciate customization.

• The confirmatory interviews supported the feasibilityand economy of using 3D printing in the local marketof Bahrain.

Chapter 5

3D Printed Planter

Chapter 6: Implementation Plan

Figure 6.1 Framework of Implementation for 3D Printing Business in Bahrain

Business Strategy

6.2. Marketing and Operations Strategy

• The strategy of 3D printing business will be based onintroducing new 3D product in a timely manner,

A. To keep business growth

B. And to increase the revenues and operational andmarketing learning curves.

• The business mission statement will be “To providestate of the art 3D printed product to Bahrain customers”.

• The vision statement will be “To satisfy customer’sdreams using the power of 3D printing and keep businessgrowing”.

Chapter 6

6.2. Marketing and Operations Objectives

• The marketing plan of 3D printing business aims to

establish anticipation of online business production

in the community so that it can hit the ground

running with retail sales immediately upon

launching.

Table 6.1 3D printing Business Marketing and Operational Objectives

Business ObjectiveYear 1 Year 2 Year 3

Q 1

Q 2

Q 3

Q 4

Q 1

Q 2

Q 3

Q 4

Q 1

Q 2

Q 3

Q 4

1 Start Business Production

2 Gift and accessories

3 Home decoration

4 Figurine

5 Architecture module

6 Jewelry model

7 Mobile accessories

Chapter 6

6.3. Operational Plan

Figure 6.3 Proposed work flow diagram

Chapter 6

Start

New

Request

Online

shop

Delivery

3D PrintDesign

Customize

Customer

Approval

New

designYes

No

REGLOCAL

Sales Production Delivery

Post process

and Package

3D Scan 3rd party

scan

Outsourced

3D Print

Digital

Design

Make or

Buy

7.1. Conclusions

1. The 3D printing business is a feasible business

in Bahrain as revealed by the feasibility study for

the proposed six product category.

2. There is a demand for the 3D printed products in

Bahrain market as clearly indicated in the market

research and conjoint analysis.

3. 3D printing is more preferred by potential

customers because of its features such as price

affordability, good product design, high quality of

color, approval from friends and family,

durability, and other related factors.

Chapter 7

7.2. Recommendations

• Because of the high feasibility of 3D printing business in

Bahrain, it is recommended that potential entrepreneurs

who are planning to engage into this venture get benefit

from the implementation plan formulated in the last

section of the study.

• The high market demand of 3D printing business in the

Kingdom of Bahrain suggests that potential entrepreneurs

need also to consider the threats, opportunities, strengths,

and weaknesses of this proposed business by

considering relevant organizational and operational plans

developed in this study.

Chapter 7

7.2. Future Research

• Future Research should use other methods of data

collection such as experimental approaches and other

correlational designs in order to give another perspective

of empirical results in the field of 3D printing business.

• The present used a mixture of techniques and analyses;

hence, future researches need to focus on at least a

specific set of analyses and methods on a specific group

of respondents.

Chapter 7

THANK YOU

ANY QUESTIONS?

using 3d printing as innovative technology to create ... · pdf file3d printing as innovative...

Documents