1.
First-mover advantage expires fast. Roomba defined the category but Chinese competitors out-innovated them with better tech at lower prices, collapsing their lead in under a decade.
2.
Supply chain proximity is competitive advantage. Chinese rivals designed, built, and marketed locally while Roomba coordinated across continents — speed and cost gaps became fatal.
3.
Desperate debt destroys options. The 14.3% Carlile loan with spending restrictions boxed Roomba in, ultimately handing control to their Chinese supplier for pennies on the dollar.
