Genomic Health: Launching a Paradigm Shift...and an Innovative New Test SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Genomic Health: Launching a Paradigm Shift...and an Innovative New Test
In late October 2003, Randy Scott and the Genomic Health team had just received the results of Genomic Health's first pivotal trial. The company's product, Oncotype DX, a first-of-its-kind genomic assay that quantified the likelihood of breast cancer recurrence, had exceeded the standard measures of patient age, tumor size, and tumor grade in predicting recurrence outcomes. The study results would be presented at the 2003 San Antonio Breast Cancer Symposium in December and published in the New England Journal of Medicine in December 2004. Scott and his team now faced the challenge of determining how and when to launch this groundbreaking product. The team was eager to get the product to market as quickly as possible. However, extensive market research performed earlier in the year reveals that it had less than 10% awareness in the physician community and even less among consumers. When asked about what factors would influence their adoption, physicians overwhelmingly cited clinical validation studies--and lots of them. Many skeptics within the oncology field felt that the legitimate use of genomics in making treatment decisions was still 10 to 20 years in the future. Finally, Genomic Health still lacked firm commitments from any payers to reimburse Oncotype DX. Explores the decisions the Genomic Health team had to make in defining the marketing plan, pricing, and reimbursement strategies that would give it the greatest chance of success in bringing its new product to market.
Authors :: Stefanos Zenios, Robert Chess, Lyn Denend
Swot Analysis of "Genomic Health: Launching a Paradigm Shift...and an Innovative New Test" written by Stefanos Zenios, Robert Chess, Lyn Denend includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Genomic Dx facing as an external strategic factors. Some of the topics covered in Genomic Health: Launching a Paradigm Shift...and an Innovative New Test case study are - Strategic Management Strategies, Pricing, Product development, Strategy and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Genomic Health: Launching a Paradigm Shift...and an Innovative New Test casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing energy prices, increasing transportation and logistics costs, increasing inequality as vast percentage of new income is going to the top 1%, cloud computing is disrupting traditional business models, wage bills are increasing, increasing household debt because of falling income levels,
talent flight as more people leaving formal jobs, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Genomic Health: Launching a Paradigm Shift...and an Innovative New Test
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Genomic Health: Launching a Paradigm Shift...and an Innovative New Test case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Genomic Dx, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Genomic Dx 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 Genomic Health: Launching a Paradigm Shift...and an Innovative New Test can be done for the following purposes –
1. Strategic planning using facts provided in Genomic Health: Launching a Paradigm Shift...and an Innovative New Test case study
2. Improving business portfolio management of Genomic Dx
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 Genomic Dx
Strengths Genomic Health: Launching a Paradigm Shift...and an Innovative New Test | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Genomic Dx in Genomic Health: Launching a Paradigm Shift...and an Innovative New Test Harvard Business Review case study are -
Effective Research and Development (R&D)
– Genomic Dx has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Genomic Health: Launching a Paradigm Shift...and an Innovative New Test - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Learning organization
- Genomic Dx 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 Genomic Dx is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Genomic Health: Launching a Paradigm Shift...and an Innovative New Test Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to lead change in Sales & Marketing field
– Genomic Dx is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Genomic Dx in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Successful track record of launching new products
– Genomic Dx has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Genomic Dx 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.
Superior customer experience
– The customer experience strategy of Genomic Dx in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Sustainable margins compare to other players in Sales & Marketing industry
– Genomic Health: Launching a Paradigm Shift...and an Innovative New Test firm has clearly differentiated products in the market place. This has enabled Genomic Dx to fetch slight price premium compare to the competitors in the Sales & Marketing industry. The sustainable margins have also helped Genomic Dx to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Genomic Dx are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
High switching costs
– The high switching costs that Genomic Dx 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.
Highly skilled collaborators
– Genomic Dx 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 Genomic Health: Launching a Paradigm Shift...and an Innovative New Test HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Low bargaining power of suppliers
– Suppliers of Genomic Dx in the sector have low bargaining power. Genomic Health: Launching a Paradigm Shift...and an Innovative New Test has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Genomic Dx to manage not only supply disruptions but also source products at highly competitive prices.
Operational resilience
– The operational resilience strategy in the Genomic Health: Launching a Paradigm Shift...and an Innovative New Test 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.
Training and development
– Genomic Dx has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Genomic Health: Launching a Paradigm Shift...and an Innovative New Test 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.
Weaknesses Genomic Health: Launching a Paradigm Shift...and an Innovative New Test | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Genomic Health: Launching a Paradigm Shift...and an Innovative New Test are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Genomic Health: Launching a Paradigm Shift...and an Innovative New Test, in the dynamic environment Genomic Dx has struggled to respond to the nimble upstart competition. Genomic Dx has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Interest costs
– Compare to the competition, Genomic Dx has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though Genomic Dx 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 - Genomic Health: Launching a Paradigm Shift...and an Innovative New Test should strive to include more intangible value offerings along with its core products and services.
Slow to strategic competitive environment developments
– As Genomic Health: Launching a Paradigm Shift...and an Innovative New Test HBR case study mentions - Genomic Dx 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Genomic Dx needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Genomic Health: Launching a Paradigm Shift...and an Innovative New Test, is just above the industry average. Genomic Dx needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Slow decision making process
– As mentioned earlier in the report, Genomic Dx 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. Genomic Dx 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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Genomic Health: Launching a Paradigm Shift...and an Innovative New Test 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 Genomic Dx has relatively successful track record of launching new products.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Genomic Dx is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Genomic Health: Launching a Paradigm Shift...and an Innovative New Test can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High bargaining power of channel partners
– Because of the regulatory requirements, Stefanos Zenios, Robert Chess, Lyn Denend suggests that, Genomic Dx 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.
Capital Spending Reduction
– Even during the low interest decade, Genomic Dx 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 Genomic Health: Launching a Paradigm Shift...and an Innovative New Test | 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 Genomic Health: Launching a Paradigm Shift...and an Innovative New Test 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 Genomic Dx 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.
Buying journey improvements
– Genomic Dx can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Genomic Health: Launching a Paradigm Shift...and an Innovative New Test 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.
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. Genomic Dx can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Better consumer reach
– The expansion of the 5G network will help Genomic Dx to increase its market reach. Genomic Dx 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 Genomic Dx 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.
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. Genomic Dx can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Genomic Dx can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Genomic Dx 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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Genomic Dx can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Loyalty marketing
– Genomic Dx has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Developing new processes and practices
– Genomic Dx 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Genomic Dx to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Genomic Dx to hire the very best people irrespective of their geographical location.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Genomic Dx 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.
Threats Genomic Health: Launching a Paradigm Shift...and an Innovative New Test External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Genomic Health: Launching a Paradigm Shift...and an Innovative New Test are -
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. Genomic Dx can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Increasing wage structure of Genomic Dx
– 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 Genomic Dx.
High dependence on third party suppliers
– Genomic Dx 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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Genomic Dx 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Genomic Health: Launching a Paradigm Shift...and an Innovative New Test, Genomic Dx may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Sales & Marketing .
Technology acceleration in Forth Industrial Revolution
– Genomic Dx has witnessed rapid integration of technology during Covid-19 in the Sales & Marketing industry. As one of the leading players in the industry, Genomic Dx 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
– Genomic Dx 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.
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 Genomic Dx in the Sales & Marketing sector and impact the bottomline of the organization.
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. Genomic Dx 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.
Shortening product life cycle
– it is one of the major threat that Genomic Dx is facing in Sales & Marketing sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Genomic Dx with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Genomic Dx needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Genomic Health: Launching a Paradigm Shift...and an Innovative New Test 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 Genomic Health: Launching a Paradigm Shift...and an Innovative New Test 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 Genomic Health: Launching a Paradigm Shift...and an Innovative New Test 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 Genomic Health: Launching a Paradigm Shift...and an Innovative New Test 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 Genomic Health: Launching a Paradigm Shift...and an Innovative New Test 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 Genomic Dx needs to make to build a sustainable competitive advantage.
