Case Study Description of 23andMe: Genetic Testing for Consumers (B)
To maximize their effectiveness, color cases should be printed in color.Following the FDA's letter in November 2013, which ordered 23andMe to cease sales of its DNA test kits, observers wondered how co-founder and CEO, Anne Wojcicki, would guide the company in the presence of uncertainty.
Swot Analysis of "23andMe: Genetic Testing for Consumers (B)" written by John A. Quelch, Margaret Rodriguez includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that 23andme Color.following facing as an external strategic factors. Some of the topics covered in 23andMe: Genetic Testing for Consumers (B) case study are - Strategic Management Strategies, Government, Health, Marketing, Product development, Risk management and Sales & Marketing.
Some of the macro environment factors that can be used to understand the 23andMe: Genetic Testing for Consumers (B) casestudy better are - – cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation, increasing commodity prices, banking and financial system is disrupted by Bitcoin and other crypto currencies, there is increasing trade war between United States & China, wage bills are increasing, increasing energy prices,
customer relationship management is fast transforming because of increasing concerns over data privacy, increasing transportation and logistics costs, etc
Introduction to SWOT Analysis of 23andMe: Genetic Testing for Consumers (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in 23andMe: Genetic Testing for Consumers (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the 23andme Color.following, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which 23andme Color.following 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 23andMe: Genetic Testing for Consumers (B) can be done for the following purposes –
1. Strategic planning using facts provided in 23andMe: Genetic Testing for Consumers (B) case study
2. Improving business portfolio management of 23andme Color.following
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 23andme Color.following
Strengths 23andMe: Genetic Testing for Consumers (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of 23andme Color.following in 23andMe: Genetic Testing for Consumers (B) Harvard Business Review case study are -
High brand equity
– 23andme Color.following has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled 23andme Color.following to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Innovation driven organization
– 23andme Color.following is one of the most innovative firm in sector. Manager in 23andMe: Genetic Testing for Consumers (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For 23andme Color.following digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. 23andme Color.following 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 switching costs
– The high switching costs that 23andme Color.following 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.
Ability to recruit top talent
– 23andme Color.following is one of the leading recruiters in the industry. Managers in the 23andMe: Genetic Testing for Consumers (B) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Operational resilience
– The operational resilience strategy in the 23andMe: Genetic Testing for Consumers (B) 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.
Low bargaining power of suppliers
– Suppliers of 23andme Color.following in the sector have low bargaining power. 23andMe: Genetic Testing for Consumers (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps 23andme Color.following to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Sales & Marketing industry
– 23andMe: Genetic Testing for Consumers (B) firm has clearly differentiated products in the market place. This has enabled 23andme Color.following to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped 23andme Color.following to invest into research and development (R&D) and innovation.
Training and development
– 23andme Color.following has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in 23andMe: Genetic Testing for Consumers (B) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Superior customer experience
– The customer experience strategy of 23andme Color.following in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Successful track record of launching new products
– 23andme Color.following has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. 23andme Color.following 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.
Highly skilled collaborators
– 23andme Color.following has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in 23andMe: Genetic Testing for Consumers (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Weaknesses 23andMe: Genetic Testing for Consumers (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of 23andMe: Genetic Testing for Consumers (B) are -
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 23andme Color.following supply chain. Even after few cautionary changes mentioned in the HBR case study - 23andMe: Genetic Testing for Consumers (B), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left 23andme Color.following vulnerable to further global disruptions in South East Asia.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the 23andMe: Genetic Testing for Consumers (B) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though 23andme Color.following has relatively successful track record of launching new products.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study 23andMe: Genetic Testing for Consumers (B), in the dynamic environment 23andme Color.following has struggled to respond to the nimble upstart competition. 23andme Color.following has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of 23andme Color.following products
– To increase the profitability and margins on the products, 23andme Color.following needs to provide more differentiated products than what it is currently offering in the marketplace.
High operating costs
– Compare to the competitors, firm in the HBR case study 23andMe: Genetic Testing for Consumers (B) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract 23andme Color.following 's lucrative customers.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study 23andMe: Genetic Testing for Consumers (B), it seems that the employees of 23andme Color.following 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.
Capital Spending Reduction
– Even during the low interest decade, 23andme Color.following 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.
Increasing silos among functional specialists
– The organizational structure of 23andme Color.following is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. 23andme Color.following needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help 23andme Color.following to focus more on services rather than just following the product oriented approach.
Slow decision making process
– As mentioned earlier in the report, 23andme Color.following 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. 23andme Color.following 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 strategic competitive environment developments
– As 23andMe: Genetic Testing for Consumers (B) HBR case study mentions - 23andme Color.following 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.
No frontier risks strategy
– After analyzing the HBR case study 23andMe: Genetic Testing for Consumers (B), it seems that company is thinking about the frontier risks that can impact Sales & Marketing strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Opportunities 23andMe: Genetic Testing for Consumers (B) | 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 23andMe: Genetic Testing for Consumers (B) 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 23andme Color.following 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, 23andme Color.following 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, 23andMe: Genetic Testing for Consumers (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of 23andme Color.following has opened avenues for new revenue streams for the organization in the industry. This can help 23andme Color.following to build a more holistic ecosystem as suggested in the 23andMe: Genetic Testing for Consumers (B) case study. 23andme Color.following can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Better consumer reach
– The expansion of the 5G network will help 23andme Color.following to increase its market reach. 23andme Color.following 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.
Using analytics as competitive advantage
– 23andme Color.following 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 23andMe: Genetic Testing for Consumers (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help 23andme Color.following to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Redefining models of collaboration and team work
– As explained in the weaknesses section, 23andme Color.following is facing challenges because of the dominance of functional experts in the organization. 23andMe: Genetic Testing for Consumers (B) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– 23andme Color.following can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. 23andMe: Genetic Testing for Consumers (B) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Developing new processes and practices
– 23andme Color.following 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects 23andme Color.following can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, 23andme Color.following can use these opportunities to build new business models that can help the communities that 23andme Color.following operates in. Secondly it can use opportunities from government spending in Sales & Marketing sector.
Low interest rates
– Even though inflation is raising its head in most developed economies, 23andme Color.following 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. 23andme Color.following can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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. 23andme Color.following 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. 23andme Color.following 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.
Threats 23andMe: Genetic Testing for Consumers (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study 23andMe: Genetic Testing for Consumers (B) are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, 23andme Color.following 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 23andMe: Genetic Testing for Consumers (B) .
High dependence on third party suppliers
– 23andme Color.following high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. 23andme Color.following needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Consumer confidence and its impact on 23andme Color.following 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.
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 23andme Color.following.
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 23andme Color.following business can come under increasing regulations regarding data privacy, data security, etc.
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. 23andme Color.following 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.
Regulatory challenges
– 23andme Color.following 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
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. 23andme Color.following can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Environmental challenges
– 23andme Color.following needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. 23andme Color.following can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for 23andme Color.following in the Sales & Marketing industry. The Sales & Marketing industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing wage structure of 23andme Color.following
– 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 23andme Color.following.
Weighted SWOT Analysis of 23andMe: Genetic Testing for Consumers (B) 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 23andMe: Genetic Testing for Consumers (B) 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 23andMe: Genetic Testing for Consumers (B) 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 23andMe: Genetic Testing for Consumers (B) 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 23andMe: Genetic Testing for Consumers (B) 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 23andme Color.following needs to make to build a sustainable competitive advantage.
