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 - – banking and financial system is disrupted by Bitcoin and other crypto currencies, central banks are concerned over increasing inflation, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs, there is increasing trade war between United States & China, wage bills are increasing, customer relationship management is fast transforming because of increasing concerns over data privacy,
increasing energy prices, cloud computing is disrupting traditional business models, 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 -
Training and development
– Beauty Proof has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Living Proof: Are We a Technology Company or a Beauty Company? 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.
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.
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.
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.
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.
Effective Research and Development (R&D)
– Beauty Proof 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 Living Proof: Are We a Technology Company or a Beauty Company? - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Ability to recruit top talent
– Beauty Proof is one of the leading recruiters in the industry. Managers in the Living Proof: Are We a Technology Company or a Beauty Company? are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
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.
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.
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.
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.
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.
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.
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.
Products dominated business model
– Even though Beauty Proof 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 - Living Proof: Are We a Technology Company or a Beauty Company? should strive to include more intangible value offerings along with its core products and services.
Slow decision making process
– As mentioned earlier in the report, Beauty Proof 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. Beauty Proof 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.
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.
Slow to strategic competitive environment developments
– As Living Proof: Are We a Technology Company or a Beauty Company? HBR case study mentions - Beauty Proof 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.
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.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Living Proof: Are We a Technology Company or a Beauty Company? 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 Beauty Proof has relatively successful track record of launching new products.
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.
Aligning sales with marketing
– It come across in the case study Living Proof: Are We a Technology Company or a Beauty Company? 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 Living Proof: Are We a Technology Company or a Beauty Company? can leverage the sales team experience to cultivate customer relationships as Beauty Proof is planning to shift buying processes online.
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 -
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.
Manufacturing automation
– Beauty Proof can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
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.
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.
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.
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.
Leveraging digital technologies
– Beauty Proof 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.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Beauty Proof can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Living Proof: Are We a Technology Company or a Beauty Company?, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
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.
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.
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.
Building a culture of innovation
– managers at Beauty Proof 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Beauty Proof 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.
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 -
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.
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.
High dependence on third party suppliers
– Beauty Proof 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.
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.
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.
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.
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 Beauty Proof.
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.
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.
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.
Increasing wage structure of Beauty Proof
– 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 Beauty Proof.
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 Beauty Proof business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.