Living Proof: Are We a Technology Company or a Beauty Company? SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Living Proof: Are We a Technology Company or a Beauty Company?
To maximize their effectiveness, color cases should be printed in color.Jon Flint came up with the idea of a science-based beauty company while talking with his hairdresser about the problems with typical hair and skin care products. Together with a small team that included Professor Robert Langer of MIT, he committed to assemble a team of scientists from outside the beauty industry to challenge the conventional wisdom. Their company, Living Proof, wanted to offer women "proof in a bottle" rather than "hope in a bottle." As the firm came to market with its first products, it focused on explaining its science to consumers. It found it increasingly necessary to direct more of its resources towards marketing, including a major investment in Jennifer Aniston as its celebrity spokesperson. Were they becoming less of a biotech company and more like a traditional beauty company? How did they reconcile the desire for continued high spending on R&D with the need to ramp up marketing?
Swot Analysis of "Living Proof: Are We a Technology Company or a Beauty Company?" written by Willy Shih includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Beauty Proof facing as an external strategic factors. Some of the topics covered in Living Proof: Are We a Technology Company or a Beauty Company? case study are - Strategic Management Strategies, Research & development, Strategy and Technology & Operations.
Some of the macro environment factors that can be used to understand the Living Proof: Are We a Technology Company or a Beauty Company? casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, geopolitical disruptions, talent flight as more people leaving formal jobs, technology disruption, there is backlash against globalization, supply chains are disrupted by pandemic , increasing household debt because of falling income levels,
customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Living Proof: Are We a Technology Company or a Beauty Company?
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Living Proof: Are We a Technology Company or a Beauty Company? case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Beauty Proof, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Beauty Proof 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 Living Proof: Are We a Technology Company or a Beauty Company? can be done for the following purposes –
1. Strategic planning using facts provided in Living Proof: Are We a Technology Company or a Beauty Company? case study
2. Improving business portfolio management of Beauty Proof
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 Beauty Proof
Strengths Living Proof: Are We a Technology Company or a Beauty Company? | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Beauty Proof in Living Proof: Are We a Technology Company or a Beauty Company? Harvard Business Review case study are -
Organizational Resilience of Beauty Proof
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Beauty Proof does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Beauty Proof digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Beauty Proof 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 Beauty Proof 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 lead change in Technology & Operations field
– Beauty Proof 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 Beauty Proof in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Superior customer experience
– The customer experience strategy of Beauty Proof in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Beauty Proof is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Beauty Proof in the sector have low bargaining power. Living Proof: Are We a Technology Company or a Beauty Company? has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Beauty Proof to manage not only supply disruptions but also source products at highly competitive prices.
Learning organization
- Beauty Proof 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 Beauty Proof is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Living Proof: Are We a Technology Company or a Beauty Company? Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Analytics focus
– Beauty Proof 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 Willy Shih 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.
Cross disciplinary teams
– Horizontal connected teams at the Beauty Proof 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.
Successful track record of launching new products
– Beauty Proof has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Beauty Proof 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.
Innovation driven organization
– Beauty Proof is one of the most innovative firm in sector. Manager in Living Proof: Are We a Technology Company or a Beauty Company? Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses Living Proof: Are We a Technology Company or a Beauty Company? | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Living Proof: Are We a Technology Company or a Beauty Company? are -
High operating costs
– Compare to the competitors, firm in the HBR case study Living Proof: Are We a Technology Company or a Beauty Company? 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 Beauty Proof 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, Beauty Proof 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.
Need for greater diversity
– Beauty Proof has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High cash cycle compare to competitors
Beauty Proof has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
No frontier risks strategy
– After analyzing the HBR case study Living Proof: Are We a Technology Company or a Beauty Company?, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Living Proof: Are We a Technology Company or a Beauty Company?, in the dynamic environment Beauty Proof has struggled to respond to the nimble upstart competition. Beauty Proof has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Skills based hiring
– The stress on hiring functional specialists at Beauty Proof 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.
High bargaining power of channel partners
– Because of the regulatory requirements, Willy Shih suggests that, Beauty Proof 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Living Proof: Are We a Technology Company or a Beauty Company?, it seems that the employees of Beauty Proof 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.
Interest costs
– Compare to the competition, Beauty Proof 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.
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 Beauty Proof supply chain. Even after few cautionary changes mentioned in the HBR case study - Living Proof: Are We a Technology Company or a Beauty Company?, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Beauty Proof vulnerable to further global disruptions in South East Asia.
Opportunities Living Proof: Are We a Technology Company or a Beauty Company? | 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 Living Proof: Are We a Technology Company or a Beauty Company? are -
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. Beauty Proof can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Using analytics as competitive advantage
– Beauty Proof 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 Living Proof: Are We a Technology Company or a Beauty Company? - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Beauty Proof to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Learning at scale
– Online learning technologies has now opened space for Beauty Proof 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.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Beauty Proof in the consumer business. Now Beauty Proof can target international markets with far fewer capital restrictions requirements than the existing system.
Better consumer reach
– The expansion of the 5G network will help Beauty Proof to increase its market reach. Beauty Proof 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Beauty Proof is facing challenges because of the dominance of functional experts in the organization. Living Proof: Are We a Technology Company or a Beauty Company? 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.
Developing new processes and practices
– Beauty Proof can develop new processes and procedures in Technology & Operations 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 Beauty Proof can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
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. Beauty Proof can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Buying journey improvements
– Beauty Proof can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Living Proof: Are We a Technology Company or a Beauty Company? 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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Beauty Proof can use these opportunities to build new business models that can help the communities that Beauty Proof operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Creating value in data economy
– The success of analytics program of Beauty Proof has opened avenues for new revenue streams for the organization in the industry. This can help Beauty Proof to build a more holistic ecosystem as suggested in the Living Proof: Are We a Technology Company or a Beauty Company? case study. Beauty Proof can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Loyalty marketing
– Beauty Proof 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.
Threats Living Proof: Are We a Technology Company or a Beauty Company? External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Living Proof: Are We a Technology Company or a Beauty Company? are -
Technology acceleration in Forth Industrial Revolution
– Beauty Proof has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Beauty Proof 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Living Proof: Are We a Technology Company or a Beauty Company?, Beauty Proof 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 .
Environmental challenges
– Beauty Proof 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. Beauty Proof can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
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 Beauty Proof in the Technology & Operations sector and impact the bottomline of the organization.
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.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Beauty Proof 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.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Beauty Proof can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Shortening product life cycle
– it is one of the major threat that Beauty Proof is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Stagnating economy with rate increase
– Beauty Proof can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Regulatory challenges
– Beauty Proof 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 Technology & Operations industry regulations.
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. Beauty Proof 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.
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. Beauty Proof needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Beauty Proof 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 Living Proof: Are We a Technology Company or a Beauty Company? 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 Living Proof: Are We a Technology Company or a Beauty Company? 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 Living Proof: Are We a Technology Company or a Beauty Company? 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 Living Proof: Are We a Technology Company or a Beauty Company? 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 Living Proof: Are We a Technology Company or a Beauty Company? 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 Beauty Proof needs to make to build a sustainable competitive advantage.
