KUKA (Industry Analysis)

Keller und Knappich Augsburg (KUKA) Robotics is a German robotics company based in Augsburg. KUKA's robot products are commonly used in factories to weld, palletize, package, process, or perform other automation task. They are also used in hospitals for brain surgery and radiography.
The industry within which KUKA operates is the automation and robotics industry. The products in this industry perform robotic tasks, which are quicker and more accurate than if a human was performing these tasks. KUKA’s products have 4 or 6 axes, range from 3 to 1000 kilogram payloads, and have a reach between 350 and 3700 millimeters. The robotics are not made to produce more robots, but are sent along to companies like BMW, Audi, GM, Chrysler, and Porsche to be used to make these companies’ products. The main competitors to KUKA are Comau, MAN, and ThyssenKrupp. KUKA is ahead of its competitors in the robotics industry, though.
The first challenge that a company like KUKA faces is trying to keep prices competitive. Robots are extremely expensive, and the competition could be producing robots cheaper. When robots are running in the tens of thousands of dollars, even a difference of one to two thousand could be a major difference. The second challenge is trying not to oversaturate the market. Audi only needs so many robots, so once a company buys what it needs, it probably will not buy more robots unless they create a new factory. Therefore, if KUKA were to sell everyone robots on Monday, they would have no sales on Tuesday. That could be a reason why KUKA has expanded into other ventures, like the Robocoaster, which is the world’s first passenger-carrying industrial robot.
This industry is of interest to business and engineering students. Engineers will appreciate the technology of a robot, and how a company responds to increased technology within the industry. Business students can appreciate how KUKA supports many other industries, like the automotive industry, which shows the interconnectedness of businesses and industries.