Case Study Description of Invisalign: Orthodontics Unwired
Align Inc. is a start-up company with a revolutionary, patent-protected new technology for straightening teeth called Invisalign. Invisalign is a set of invisible plastic aligners made to each patient's specific needs that substitute for metal or ceramic braces in adults (it is not sold for children's orthodontic needs). The company has created tremendous consumer awareness and affect for its product, yet sales results are dismal. Requires the reader to analyze the reasons for such poor sales and what to do to remedy the problem.
Authors :: Anne Coughlan, Julie Hennessy, Andrei Najjar
Swot Analysis of "Invisalign: Orthodontics Unwired" written by Anne Coughlan, Julie Hennessy, Andrei Najjar includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Invisalign Aligners facing as an external strategic factors. Some of the topics covered in Invisalign: Orthodontics Unwired case study are - Strategic Management Strategies, Product development and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Invisalign: Orthodontics Unwired casestudy better are - – increasing transportation and logistics costs, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, central banks are concerned over increasing inflation, there is backlash against globalization, increasing government debt because of Covid-19 spendings, there is increasing trade war between United States & China,
cloud computing is disrupting traditional business models, competitive advantages are harder to sustain because of technology dispersion, etc
Introduction to SWOT Analysis of Invisalign: Orthodontics Unwired
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Invisalign: Orthodontics Unwired case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Invisalign Aligners, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Invisalign Aligners operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Invisalign: Orthodontics Unwired can be done for the following purposes –
1. Strategic planning using facts provided in Invisalign: Orthodontics Unwired case study
2. Improving business portfolio management of Invisalign Aligners
3. Assessing feasibility of the new initiative in Sales & Marketing field.
4. Making a Sales & Marketing topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Invisalign Aligners
Strengths Invisalign: Orthodontics Unwired | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Invisalign Aligners in Invisalign: Orthodontics Unwired Harvard Business Review case study are -
Learning organization
- Invisalign Aligners is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Invisalign Aligners is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Invisalign: Orthodontics Unwired Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High switching costs
– The high switching costs that Invisalign Aligners has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Low bargaining power of suppliers
– Suppliers of Invisalign Aligners in the sector have low bargaining power. Invisalign: Orthodontics Unwired has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Invisalign Aligners to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Sales & Marketing industry
– Invisalign: Orthodontics Unwired firm has clearly differentiated products in the market place. This has enabled Invisalign Aligners to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Invisalign Aligners to invest into research and development (R&D) and innovation.
Operational resilience
– The operational resilience strategy in the Invisalign: Orthodontics Unwired Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Innovation driven organization
– Invisalign Aligners is one of the most innovative firm in sector. Manager in Invisalign: Orthodontics Unwired Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Analytics focus
– Invisalign Aligners is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Anne Coughlan, Julie Hennessy, Andrei Najjar can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Successful track record of launching new products
– Invisalign Aligners has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Invisalign Aligners has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Strong track record of project management
– Invisalign Aligners is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Organizational Resilience of Invisalign Aligners
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Invisalign Aligners does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Invisalign Aligners digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Invisalign Aligners has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– Invisalign Aligners has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Invisalign Aligners to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Invisalign: Orthodontics Unwired | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Invisalign: Orthodontics Unwired are -
Slow decision making process
– As mentioned earlier in the report, Invisalign Aligners has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Invisalign Aligners even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Invisalign Aligners is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Invisalign: Orthodontics Unwired can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Invisalign: Orthodontics Unwired, it seems that the employees of Invisalign Aligners don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Aligning sales with marketing
– It come across in the case study Invisalign: Orthodontics Unwired that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Invisalign: Orthodontics Unwired can leverage the sales team experience to cultivate customer relationships as Invisalign Aligners is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Anne Coughlan, Julie Hennessy, Andrei Najjar suggests that, Invisalign Aligners is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Slow to strategic competitive environment developments
– As Invisalign: Orthodontics Unwired HBR case study mentions - Invisalign Aligners takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Invisalign Aligners supply chain. Even after few cautionary changes mentioned in the HBR case study - Invisalign: Orthodontics Unwired, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Invisalign Aligners vulnerable to further global disruptions in South East Asia.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Invisalign: Orthodontics Unwired, in the dynamic environment Invisalign Aligners has struggled to respond to the nimble upstart competition. Invisalign Aligners has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Low market penetration in new markets
– Outside its home market of Invisalign Aligners, firm in the HBR case study Invisalign: Orthodontics Unwired needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Products dominated business model
– Even though Invisalign Aligners has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Invisalign: Orthodontics Unwired should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Invisalign Aligners has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Opportunities Invisalign: Orthodontics Unwired | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Invisalign: Orthodontics Unwired are -
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Invisalign Aligners to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Low interest rates
– Even though inflation is raising its head in most developed economies, Invisalign Aligners can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Invisalign Aligners can use these opportunities to build new business models that can help the communities that Invisalign Aligners operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Developing new processes and practices
– Invisalign Aligners can develop new processes and procedures in Sales & Marketing industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Sales & Marketing industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Invisalign Aligners can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Invisalign Aligners can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Building a culture of innovation
– managers at Invisalign Aligners can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Sales & Marketing segment.
Creating value in data economy
– The success of analytics program of Invisalign Aligners has opened avenues for new revenue streams for the organization in the industry. This can help Invisalign Aligners to build a more holistic ecosystem as suggested in the Invisalign: Orthodontics Unwired case study. Invisalign Aligners can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Sales & Marketing industry, but it has also influenced the consumer preferences. Invisalign Aligners can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Better consumer reach
– The expansion of the 5G network will help Invisalign Aligners to increase its market reach. Invisalign Aligners will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Learning at scale
– Online learning technologies has now opened space for Invisalign Aligners to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Using analytics as competitive advantage
– Invisalign Aligners has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Invisalign: Orthodontics Unwired - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Invisalign Aligners to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Invisalign Aligners in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Sales & Marketing segment, and it will provide faster access to the consumers.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Invisalign Aligners can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Invisalign: Orthodontics Unwired, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Threats Invisalign: Orthodontics Unwired External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Invisalign: Orthodontics Unwired are -
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Invisalign Aligners.
Stagnating economy with rate increase
– Invisalign Aligners can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology acceleration in Forth Industrial Revolution
– Invisalign Aligners has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Invisalign Aligners needs to keep up with the evolution of technology in the Sales & Marketing sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Regulatory challenges
– Invisalign Aligners needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Sales & Marketing industry regulations.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Invisalign Aligners can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Invisalign: Orthodontics Unwired .
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Invisalign Aligners business can come under increasing regulations regarding data privacy, data security, etc.
Shortening product life cycle
– it is one of the major threat that Invisalign Aligners is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Consumer confidence and its impact on Invisalign Aligners demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Increasing wage structure of Invisalign Aligners
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Invisalign Aligners.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Invisalign Aligners in the Sales & Marketing sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Sales & Marketing field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Invisalign Aligners can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Invisalign Aligners will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Weighted SWOT Analysis of Invisalign: Orthodontics Unwired Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Invisalign: Orthodontics Unwired needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Invisalign: Orthodontics Unwired is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Invisalign: Orthodontics Unwired is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Invisalign: Orthodontics Unwired is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Invisalign Aligners needs to make to build a sustainable competitive advantage.