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Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Rohde & Schwarz entered the oscilloscope market because it saw a promising adjacent business where its measurement expertise could help it build a distinctive product. In a 4 October 2010 interview with EE Times Europe, measurement-technology business manager Roland Steffen described a deliberate, long-horizon strategy: invest in product features and in-house technology, aim to take share from established competitors, and allow at least five years to pursue a meaningful market position.
Why enter a market with little growth?
Steffen described oscilloscopes as an attractive extension of Rohde & Schwarz’s measurement-technology business. The company believed experience gained in other measurement products could transfer to oscilloscopes, and that employees who used instruments themselves could help identify shortcomings in existing products. That gave it a rationale for entering a familiar technical field through a new product category, rather than diversifying into an unrelated business.
The market outlook was not an easy-growth story. Steffen characterized it as having “almost no growth,” meaning that a new entrant would largely have to win customers from established vendors. The interview put the global oscilloscope market at $1 billion, a valuation reported by Rohde & Schwarz in 2010. Steffen illustrated the scale of the opportunity by saying that 10 percent would equal $100 million; both figures describe his 2010 estimate, not a current market valuation.
What was the product meant to do differently?
The product concept combined usability with measurement performance. Rohde & Schwarz emphasized its user interface, low-noise amplifiers and ability to measure very small signals. The company also invested in hardware signal processing, rather than relying only on off-the-shelf components.
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Custom silicon as a capability and a barrier
Steffen said the oscilloscope used a custom ASIC with 15 million gates, and that its A/D converter supported signal frequencies up to 10GHz; these specifications were reported by Rohde & Schwarz in 2010. The company’s broader approach was to design its own ICs when critical functions were not available commercially. That required substantial investment, but Steffen regarded the investment as a potential barrier to competitors—especially smaller firms that could struggle to finance each new product generation amid industry consolidation.
The underlying financial logic was not to demand maximum returns from every new product immediately. Steffen put it plainly: “Nevertheless, we do not necessarily expect that the first product in a new market brings as much profit as do products for markets where we have already achieved a strong position.” He also said, “In general, we want to be profitable with our designs.” In other words, the company framed entry as a profitable-design goal, while accepting that a first product in a new category might not match the returns of established lines.
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How did Rohde & Schwarz plan to compete?
Steffen said the company intended to become number three in the oscilloscope market and targeted double-digit market shares in the first years. Those were ambitions stated in 2010, not evidence in the interview that the company later achieved them. With little market growth expected, reaching them would depend on taking share rather than relying on an expanding market to lift all suppliers.
The interview also pointed to opportunities across measurement categories and price levels. Rohde & Schwarz reported that network analysis had reached 500GHz, while most of its business in that field was up to 40GHz; those figures describe network analysis, not the oscilloscope’s frequency specification. Steffen also saw room for lower-priced entry-level products. Together, these points suggest a competitive strategy that combined technical differentiation with attention to accessible product tiers, rather than treating the market as a contest only at the highest performance levels.
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Why was the expected payback measured in years?
Steffen expected it to take at least five years to pursue the company’s ranking goal. He compared the challenge with spectrum analysis, where Rohde & Schwarz had taken 15 years to reach its position at the time of the interview. These were management expectations and historical comparisons from 2010, not a forecast of when the oscilloscope business actually reached a particular rank.
The company’s ownership and product economics supported a longer planning horizon, according to Steffen. Private ownership reduced pressure from stock-market expectations, while measurement products typically had life cycles longer than ten years. A long product life can make sustained investment more plausible, but it does not guarantee that a new product will win share or earn an adequate return.
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How did the operating model support the strategy?
In 2010, Steffen reported that more than 80 percent of Rohde & Schwarz’s sales were exports and that 20 percent of measurement-technology development resources were outside Germany. The company had subsidiaries in Europe, Asia and the United States, reflecting an international business and development footprint.
Manufacturing, however, remained almost entirely in Germany. Steffen linked that choice to relatively low production volumes and the value of close coordination between design and manufacturing. The company also made its own printed circuit boards and mechanical components to control quality and prioritize delivery. He said Rohde & Schwarz was considering Asian production as design activity in Asia increased. The interview described that as a consideration, not a completed move.
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What the strategy says about long-term investment
The oscilloscope entry illustrates a specific corporate bet: use capabilities built in adjacent measurement businesses, invest in custom technology where it matters, and accept a long route to market position. The company’s own history in spectrum analysis gave Steffen a precedent for patience, while its market-share target made clear that patience alone would not suffice. The plan depended on translating technical investments and operating control into products customers would choose in a crowded, low-growth market.
Steffen favored organic expansion over relying on acquisitions, saying it typically takes more time but is “more sustainable.” That is the strategic trade-off at the heart of the 2010 interview: slower growth in a new category in exchange for building capabilities and a market position from within.
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