NeoGenius Co., Ltd. (NeoGenius) is an early stage entrepreneurial venture based in South Korea. Founded in February 2000, NeoGenius provides a wide range of business to business (B2B) e-business software and related services. The company's chief executive officer must decide among several options including growth and exit. Students will analyze different growth options that entrepreneurs commonly face, as well as an entrepreneur's decision-making process.
Swot Analysis of "NeoGenius Co., Ltd." written by Dominic S.K. Lim, Eric A. Morse includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Neogenius Entrepreneur's facing as an external strategic factors. Some of the topics covered in NeoGenius Co., Ltd. case study are - Strategic Management Strategies, and Global Business.
Some of the macro environment factors that can be used to understand the NeoGenius Co., Ltd. casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing inequality as vast percentage of new income is going to the top 1%, increasing transportation and logistics costs, there is backlash against globalization,
geopolitical disruptions, increasing commodity prices, etc
Introduction to SWOT Analysis of NeoGenius Co., Ltd.
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in NeoGenius Co., Ltd. case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Neogenius Entrepreneur's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Neogenius Entrepreneur's 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 NeoGenius Co., Ltd. can be done for the following purposes –
1. Strategic planning using facts provided in NeoGenius Co., Ltd. case study
2. Improving business portfolio management of Neogenius Entrepreneur's
3. Assessing feasibility of the new initiative in Global Business field.
4. Making a Global Business topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Neogenius Entrepreneur's
Strengths NeoGenius Co., Ltd. | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Neogenius Entrepreneur's in NeoGenius Co., Ltd. Harvard Business Review case study are -
Diverse revenue streams
– Neogenius Entrepreneur's is present in almost all the verticals within the industry. This has provided firm in NeoGenius Co., Ltd. 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
– Neogenius Entrepreneur's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in NeoGenius Co., Ltd. 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
– Neogenius Entrepreneur's is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Neogenius Entrepreneur's 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 NeoGenius Co., Ltd. - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Successful track record of launching new products
– Neogenius Entrepreneur's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Neogenius Entrepreneur's 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.
Highly skilled collaborators
– Neogenius Entrepreneur's 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 NeoGenius Co., Ltd. HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High brand equity
– Neogenius Entrepreneur's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Neogenius Entrepreneur's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to recruit top talent
– Neogenius Entrepreneur's is one of the leading recruiters in the industry. Managers in the NeoGenius Co., Ltd. are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Global Business industry
– NeoGenius Co., Ltd. firm has clearly differentiated products in the market place. This has enabled Neogenius Entrepreneur's to fetch slight price premium compare to the competitors in the Global Business industry. The sustainable margins have also helped Neogenius Entrepreneur's to invest into research and development (R&D) and innovation.
Superior customer experience
– The customer experience strategy of Neogenius Entrepreneur's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Low bargaining power of suppliers
– Suppliers of Neogenius Entrepreneur's in the sector have low bargaining power. NeoGenius Co., Ltd. has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Neogenius Entrepreneur's to manage not only supply disruptions but also source products at highly competitive prices.
Innovation driven organization
– Neogenius Entrepreneur's is one of the most innovative firm in sector. Manager in NeoGenius Co., Ltd. Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Weaknesses NeoGenius Co., Ltd. | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of NeoGenius Co., Ltd. are -
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 Neogenius Entrepreneur's supply chain. Even after few cautionary changes mentioned in the HBR case study - NeoGenius Co., Ltd., it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Neogenius Entrepreneur's vulnerable to further global disruptions in South East Asia.
Low market penetration in new markets
– Outside its home market of Neogenius Entrepreneur's, firm in the HBR case study NeoGenius Co., Ltd. needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Interest costs
– Compare to the competition, Neogenius Entrepreneur's 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 NeoGenius Co., Ltd. HBR case study mentions - Neogenius Entrepreneur's 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.
Lack of clear differentiation of Neogenius Entrepreneur's products
– To increase the profitability and margins on the products, Neogenius Entrepreneur's needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Neogenius Entrepreneur's 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 - NeoGenius Co., Ltd. should strive to include more intangible value offerings along with its core products and services.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study NeoGenius Co., Ltd., in the dynamic environment Neogenius Entrepreneur's has struggled to respond to the nimble upstart competition. Neogenius Entrepreneur's has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study NeoGenius Co., Ltd. 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 NeoGenius Co., Ltd. can leverage the sales team experience to cultivate customer relationships as Neogenius Entrepreneur's is planning to shift buying processes online.
High bargaining power of channel partners
– Because of the regulatory requirements, Dominic S.K. Lim, Eric A. Morse suggests that, Neogenius Entrepreneur's 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, Neogenius Entrepreneur's 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.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study NeoGenius Co., Ltd., it seems that the employees of Neogenius Entrepreneur's 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 NeoGenius Co., Ltd. | 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 NeoGenius Co., Ltd. are -
Buying journey improvements
– Neogenius Entrepreneur's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. NeoGenius Co., Ltd. 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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Global Business industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Neogenius Entrepreneur's 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. Neogenius Entrepreneur's 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.
Creating value in data economy
– The success of analytics program of Neogenius Entrepreneur's has opened avenues for new revenue streams for the organization in the industry. This can help Neogenius Entrepreneur's to build a more holistic ecosystem as suggested in the NeoGenius Co., Ltd. case study. Neogenius Entrepreneur's 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 Global Business industry, but it has also influenced the consumer preferences. Neogenius Entrepreneur's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Neogenius Entrepreneur's is facing challenges because of the dominance of functional experts in the organization. NeoGenius Co., Ltd. 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 Neogenius Entrepreneur's in the consumer business. Now Neogenius Entrepreneur's can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Neogenius Entrepreneur's 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 Neogenius Entrepreneur's to hire the very best people irrespective of their geographical location.
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. Neogenius Entrepreneur's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Developing new processes and practices
– Neogenius Entrepreneur's can develop new processes and procedures in Global Business 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Neogenius Entrepreneur's 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.
Manufacturing automation
– Neogenius Entrepreneur's can use the latest technology developments to improve its manufacturing and designing process in Global Business 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.
Learning at scale
– Online learning technologies has now opened space for Neogenius Entrepreneur's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Neogenius Entrepreneur's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Global Business segment, and it will provide faster access to the consumers.
Threats NeoGenius Co., Ltd. External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study NeoGenius Co., Ltd. are -
Regulatory challenges
– Neogenius Entrepreneur's 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 Global Business industry regulations.
Shortening product life cycle
– it is one of the major threat that Neogenius Entrepreneur's is facing in Global Business sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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 Neogenius Entrepreneur's in the Global Business sector and impact the bottomline of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Neogenius Entrepreneur's 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 NeoGenius Co., Ltd. .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Neogenius Entrepreneur's in the Global Business industry. The Global Business 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.
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 Neogenius Entrepreneur's.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study NeoGenius Co., Ltd., Neogenius Entrepreneur's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Global Business .
Easy access to finance
– Easy access to finance in Global Business field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Neogenius Entrepreneur's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Consumer confidence and its impact on Neogenius Entrepreneur's 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.
Stagnating economy with rate increase
– Neogenius Entrepreneur's 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.
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. Neogenius Entrepreneur's 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.
Environmental challenges
– Neogenius Entrepreneur's 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. Neogenius Entrepreneur's can take advantage of this fund but it will also bring new competitors in the Global Business industry.
Increasing wage structure of Neogenius Entrepreneur's
– 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 Neogenius Entrepreneur's.
Weighted SWOT Analysis of NeoGenius Co., Ltd. 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 NeoGenius Co., Ltd. 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 NeoGenius Co., Ltd. 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 NeoGenius Co., Ltd. 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 NeoGenius Co., Ltd. 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 Neogenius Entrepreneur's needs to make to build a sustainable competitive advantage.