Centagenetix (A): Building a Business Model for Genetic Longevity SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Centagenetix (A): Building a Business Model for Genetic Longevity
Describes a start-up company seeking to exploit population genetic data from long-lived, healthy people. The company must address legal, financial, ethical, and personal issues among its team to launch the company.
Swot Analysis of "Centagenetix (A): Building a Business Model for Genetic Longevity" written by Henry W. Chesbrough, Frank Angella includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Genetic Centagenetix facing as an external strategic factors. Some of the topics covered in Centagenetix (A): Building a Business Model for Genetic Longevity case study are - Strategic Management Strategies, and Technology & Operations.
Some of the macro environment factors that can be used to understand the Centagenetix (A): Building a Business Model for Genetic Longevity casestudy better are - – increasing inequality as vast percentage of new income is going to the top 1%, there is increasing trade war between United States & China, increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions,
cloud computing is disrupting traditional business models, increasing energy prices, etc
Introduction to SWOT Analysis of Centagenetix (A): Building a Business Model for Genetic Longevity
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Centagenetix (A): Building a Business Model for Genetic Longevity case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Genetic Centagenetix, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Genetic Centagenetix 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 Centagenetix (A): Building a Business Model for Genetic Longevity can be done for the following purposes –
1. Strategic planning using facts provided in Centagenetix (A): Building a Business Model for Genetic Longevity case study
2. Improving business portfolio management of Genetic Centagenetix
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Genetic Centagenetix
Strengths Centagenetix (A): Building a Business Model for Genetic Longevity | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Genetic Centagenetix in Centagenetix (A): Building a Business Model for Genetic Longevity Harvard Business Review case study are -
Operational resilience
– The operational resilience strategy in the Centagenetix (A): Building a Business Model for Genetic Longevity 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.
Sustainable margins compare to other players in Technology & Operations industry
– Centagenetix (A): Building a Business Model for Genetic Longevity firm has clearly differentiated products in the market place. This has enabled Genetic Centagenetix to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Genetic Centagenetix to invest into research and development (R&D) and innovation.
Learning organization
- Genetic Centagenetix 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 Genetic Centagenetix is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Centagenetix (A): Building a Business Model for Genetic Longevity Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Diverse revenue streams
– Genetic Centagenetix is present in almost all the verticals within the industry. This has provided firm in Centagenetix (A): Building a Business Model for Genetic Longevity 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.
High switching costs
– The high switching costs that Genetic Centagenetix 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.
Organizational Resilience of Genetic Centagenetix
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Genetic Centagenetix does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Superior customer experience
– The customer experience strategy of Genetic Centagenetix in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Innovation driven organization
– Genetic Centagenetix is one of the most innovative firm in sector. Manager in Centagenetix (A): Building a Business Model for Genetic Longevity Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Training and development
– Genetic Centagenetix has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Centagenetix (A): Building a Business Model for Genetic Longevity 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.
Strong track record of project management
– Genetic Centagenetix is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Successful track record of launching new products
– Genetic Centagenetix has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Genetic Centagenetix 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.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Genetic Centagenetix digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Genetic Centagenetix 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.
Weaknesses Centagenetix (A): Building a Business Model for Genetic Longevity | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Centagenetix (A): Building a Business Model for Genetic Longevity are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Centagenetix (A): Building a Business Model for Genetic Longevity, in the dynamic environment Genetic Centagenetix has struggled to respond to the nimble upstart competition. Genetic Centagenetix has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Centagenetix (A): Building a Business Model for Genetic Longevity 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 Genetic Centagenetix has relatively successful track record of launching new products.
Interest costs
– Compare to the competition, Genetic Centagenetix 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.
Slow to strategic competitive environment developments
– As Centagenetix (A): Building a Business Model for Genetic Longevity HBR case study mentions - Genetic Centagenetix 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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Centagenetix (A): Building a Business Model for Genetic Longevity, is just above the industry average. Genetic Centagenetix 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.
Low market penetration in new markets
– Outside its home market of Genetic Centagenetix, firm in the HBR case study Centagenetix (A): Building a Business Model for Genetic Longevity needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
High bargaining power of channel partners
– Because of the regulatory requirements, Henry W. Chesbrough, Frank Angella suggests that, Genetic Centagenetix 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.
Products dominated business model
– Even though Genetic Centagenetix 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 - Centagenetix (A): Building a Business Model for Genetic Longevity should strive to include more intangible value offerings along with its core products and services.
Capital Spending Reduction
– Even during the low interest decade, Genetic Centagenetix 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 Genetic Centagenetix is dominated by functional specialists. It is not different from other players in the Technology & Operations segment. Genetic Centagenetix needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Genetic Centagenetix to focus more on services rather than just following the product oriented approach.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Centagenetix (A): Building a Business Model for Genetic Longevity, it seems that the employees of Genetic Centagenetix 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.
Opportunities Centagenetix (A): Building a Business Model for Genetic Longevity | 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 Centagenetix (A): Building a Business Model for Genetic Longevity are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for Genetic Centagenetix in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Better consumer reach
– The expansion of the 5G network will help Genetic Centagenetix to increase its market reach. Genetic Centagenetix 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.
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 Genetic Centagenetix 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.
Loyalty marketing
– Genetic Centagenetix 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Genetic Centagenetix can use these opportunities to build new business models that can help the communities that Genetic Centagenetix operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Learning at scale
– Online learning technologies has now opened space for Genetic Centagenetix 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Genetic Centagenetix 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. Genetic Centagenetix 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.
Buying journey improvements
– Genetic Centagenetix can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Centagenetix (A): Building a Business Model for Genetic Longevity 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.
Building a culture of innovation
– managers at Genetic Centagenetix 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 Technology & Operations segment.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Genetic Centagenetix can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Genetic Centagenetix 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 Genetic Centagenetix to hire the very best people irrespective of their geographical location.
Creating value in data economy
– The success of analytics program of Genetic Centagenetix has opened avenues for new revenue streams for the organization in the industry. This can help Genetic Centagenetix to build a more holistic ecosystem as suggested in the Centagenetix (A): Building a Business Model for Genetic Longevity case study. Genetic Centagenetix 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 Technology & Operations industry, but it has also influenced the consumer preferences. Genetic Centagenetix can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats Centagenetix (A): Building a Business Model for Genetic Longevity External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Centagenetix (A): Building a Business Model for Genetic Longevity are -
High dependence on third party suppliers
– Genetic Centagenetix 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.
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 Genetic Centagenetix business can come under increasing regulations regarding data privacy, data security, etc.
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. Genetic Centagenetix needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
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 Genetic Centagenetix.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Genetic Centagenetix in the Technology & Operations industry. The Technology & Operations 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 Centagenetix (A): Building a Business Model for Genetic Longevity, Genetic Centagenetix may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Genetic Centagenetix with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
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. Genetic Centagenetix 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.
Technology acceleration in Forth Industrial Revolution
– Genetic Centagenetix has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Genetic Centagenetix needs to keep up with the evolution of technology in the Technology & Operations 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.
Consumer confidence and its impact on Genetic Centagenetix 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.
Shortening product life cycle
– it is one of the major threat that Genetic Centagenetix is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Increasing wage structure of Genetic Centagenetix
– 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 Genetic Centagenetix.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Genetic Centagenetix 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 Centagenetix (A): Building a Business Model for Genetic Longevity .
Weighted SWOT Analysis of Centagenetix (A): Building a Business Model for Genetic Longevity 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 Centagenetix (A): Building a Business Model for Genetic Longevity 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 Centagenetix (A): Building a Business Model for Genetic Longevity 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 Centagenetix (A): Building a Business Model for Genetic Longevity 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 Centagenetix (A): Building a Business Model for Genetic Longevity 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 Genetic Centagenetix needs to make to build a sustainable competitive advantage.