Dastmalchi LLC And Vitasigns: Creating A Healthy Future? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Sales & Marketing
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Dastmalchi LLC And Vitasigns: Creating A Healthy Future?
Serial entrepreneur Alex Dastmalchi runs Dastmalchi LLC, a company that sells health and personal care products directly to consumers using various social media platforms and flash sites. He and his team discuss the possibility of building out the Vitasigns product line, which consists of digital health wearable products that measure various aspects of the users health. Datmalchi LLC could be revamped to pursue this much more capital-intensive, high risk healthcare opportunity, or it could "stick to its knitting" and continue to capitalize on its unique skills in social marketing and its "fast-follower" product-sourcing capabilities.
Authors :: Paul Orlando, Jeremy Dann, Megan Strawther
Swot Analysis of "Dastmalchi LLC And Vitasigns: Creating A Healthy Future?" written by Paul Orlando, Jeremy Dann, Megan Strawther includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Dastmalchi Vitasigns facing as an external strategic factors. Some of the topics covered in Dastmalchi LLC And Vitasigns: Creating A Healthy Future? case study are - Strategic Management Strategies, Social platforms and Sales & Marketing.
Some of the macro environment factors that can be used to understand the Dastmalchi LLC And Vitasigns: Creating A Healthy Future? casestudy better are - – challanges to central banks by blockchain based private currencies, increasing household debt because of falling income levels, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, there is backlash against globalization, digital marketing is dominated by two big players Facebook and Google, geopolitical disruptions,
increasing commodity prices, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Dastmalchi LLC And Vitasigns: Creating A Healthy Future?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Dastmalchi LLC And Vitasigns: Creating A Healthy Future? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Dastmalchi Vitasigns, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Dastmalchi Vitasigns 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 Dastmalchi LLC And Vitasigns: Creating A Healthy Future? can be done for the following purposes –
1. Strategic planning using facts provided in Dastmalchi LLC And Vitasigns: Creating A Healthy Future? case study
2. Improving business portfolio management of Dastmalchi Vitasigns
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 Dastmalchi Vitasigns
Strengths Dastmalchi LLC And Vitasigns: Creating A Healthy Future? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Dastmalchi Vitasigns in Dastmalchi LLC And Vitasigns: Creating A Healthy Future? Harvard Business Review case study are -
Effective Research and Development (R&D)
– Dastmalchi Vitasigns 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 Dastmalchi LLC And Vitasigns: Creating A Healthy Future? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Digital Transformation in Sales & Marketing segment
- digital transformation varies from industry to industry. For Dastmalchi Vitasigns digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Dastmalchi Vitasigns 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 Dastmalchi Vitasigns 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
– Dastmalchi Vitasigns 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 Dastmalchi LLC And Vitasigns: Creating A Healthy Future? HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to lead change in Sales & Marketing field
– Dastmalchi Vitasigns 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 Dastmalchi Vitasigns in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
High brand equity
– Dastmalchi Vitasigns has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Dastmalchi Vitasigns to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Analytics focus
– Dastmalchi Vitasigns 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 Paul Orlando, Jeremy Dann, Megan Strawther 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.
Organizational Resilience of Dastmalchi Vitasigns
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Dastmalchi Vitasigns does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Diverse revenue streams
– Dastmalchi Vitasigns is present in almost all the verticals within the industry. This has provided firm in Dastmalchi LLC And Vitasigns: Creating A Healthy Future? case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Training and development
– Dastmalchi Vitasigns has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Dastmalchi LLC And Vitasigns: Creating A Healthy Future? 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.
Low bargaining power of suppliers
– Suppliers of Dastmalchi Vitasigns in the sector have low bargaining power. Dastmalchi LLC And Vitasigns: Creating A Healthy Future? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Dastmalchi Vitasigns to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– Dastmalchi Vitasigns is one of the leading recruiters in the industry. Managers in the Dastmalchi LLC And Vitasigns: Creating A Healthy Future? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Dastmalchi LLC And Vitasigns: Creating A Healthy Future? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Dastmalchi LLC And Vitasigns: Creating A Healthy Future? are -
Aligning sales with marketing
– It come across in the case study Dastmalchi LLC And Vitasigns: Creating A Healthy Future? 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 Dastmalchi LLC And Vitasigns: Creating A Healthy Future? can leverage the sales team experience to cultivate customer relationships as Dastmalchi Vitasigns is planning to shift buying processes online.
Lack of clear differentiation of Dastmalchi Vitasigns products
– To increase the profitability and margins on the products, Dastmalchi Vitasigns needs to provide more differentiated products than what it is currently offering in the marketplace.
Capital Spending Reduction
– Even during the low interest decade, Dastmalchi Vitasigns 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 Dastmalchi Vitasigns is dominated by functional specialists. It is not different from other players in the Sales & Marketing segment. Dastmalchi Vitasigns needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Dastmalchi Vitasigns to focus more on services rather than just following the product oriented approach.
High operating costs
– Compare to the competitors, firm in the HBR case study Dastmalchi LLC And Vitasigns: Creating A Healthy Future? 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 Dastmalchi Vitasigns 's lucrative customers.
No frontier risks strategy
– After analyzing the HBR case study Dastmalchi LLC And Vitasigns: Creating A Healthy Future?, 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Paul Orlando, Jeremy Dann, Megan Strawther suggests that, Dastmalchi Vitasigns 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Dastmalchi Vitasigns 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.
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 Dastmalchi Vitasigns supply chain. Even after few cautionary changes mentioned in the HBR case study - Dastmalchi LLC And Vitasigns: Creating A Healthy Future?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Dastmalchi Vitasigns vulnerable to further global disruptions in South East Asia.
Skills based hiring
– The stress on hiring functional specialists at Dastmalchi Vitasigns has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
Low market penetration in new markets
– Outside its home market of Dastmalchi Vitasigns, firm in the HBR case study Dastmalchi LLC And Vitasigns: Creating A Healthy Future? needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Opportunities Dastmalchi LLC And Vitasigns: Creating A Healthy Future? | 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 Dastmalchi LLC And Vitasigns: Creating A Healthy Future? are -
Buying journey improvements
– Dastmalchi Vitasigns can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Dastmalchi LLC And Vitasigns: Creating A Healthy Future? 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.
Manufacturing automation
– Dastmalchi Vitasigns can use the latest technology developments to improve its manufacturing and designing process in Sales & Marketing segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
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. Dastmalchi Vitasigns 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. Dastmalchi Vitasigns 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.
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. Dastmalchi Vitasigns 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
– Dastmalchi Vitasigns 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.
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 Dastmalchi Vitasigns 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.
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. Dastmalchi Vitasigns can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Creating value in data economy
– The success of analytics program of Dastmalchi Vitasigns has opened avenues for new revenue streams for the organization in the industry. This can help Dastmalchi Vitasigns to build a more holistic ecosystem as suggested in the Dastmalchi LLC And Vitasigns: Creating A Healthy Future? case study. Dastmalchi Vitasigns can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Dastmalchi Vitasigns 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.
Loyalty marketing
– Dastmalchi Vitasigns 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
– Dastmalchi Vitasigns 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.
Learning at scale
– Online learning technologies has now opened space for Dastmalchi Vitasigns 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Dastmalchi Vitasigns 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 Dastmalchi Vitasigns to hire the very best people irrespective of their geographical location.
Threats Dastmalchi LLC And Vitasigns: Creating A Healthy Future? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Dastmalchi LLC And Vitasigns: Creating A Healthy Future? are -
High dependence on third party suppliers
– Dastmalchi Vitasigns 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.
Increasing wage structure of Dastmalchi Vitasigns
– 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 Dastmalchi Vitasigns.
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.
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 Dastmalchi Vitasigns.
Environmental challenges
– Dastmalchi Vitasigns 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. Dastmalchi Vitasigns can take advantage of this fund but it will also bring new competitors in the Sales & Marketing industry.
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. Dastmalchi Vitasigns 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.
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 Dastmalchi Vitasigns in the Sales & Marketing sector and impact the bottomline of the organization.
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 Dastmalchi Vitasigns business can come under increasing regulations regarding data privacy, data security, etc.
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. Dastmalchi Vitasigns can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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. Dastmalchi Vitasigns needs to understand the core reasons impacting the Sales & Marketing industry. This will help it in building a better workplace.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Dastmalchi Vitasigns 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 Dastmalchi LLC And Vitasigns: Creating A Healthy Future?, Dastmalchi Vitasigns 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 .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Dastmalchi Vitasigns with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Weighted SWOT Analysis of Dastmalchi LLC And Vitasigns: Creating A Healthy Future? 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 Dastmalchi LLC And Vitasigns: Creating A Healthy Future? 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 Dastmalchi LLC And Vitasigns: Creating A Healthy Future? 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 Dastmalchi LLC And Vitasigns: Creating A Healthy Future? 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 Dastmalchi LLC And Vitasigns: Creating A Healthy Future? 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 Dastmalchi Vitasigns needs to make to build a sustainable competitive advantage.