GOQii: Envisioning a New Fitness Future (B) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Innovation & Entrepreneurship
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of GOQii: Envisioning a New Fitness Future (B)
Supplement to case ISB079. Gondal, a serial entrepreneur, was supported by top technology experts in GOQii's angel round of funding. Case A details GOQii's journey from its incorporation in 2014 until April 2016. It describes GOQii's product-service offering of wearable fitness band technology supplemented with remote personalized coaching, its launch in the Indian market, and its emergence as a pioneer of a new category of product in the health and lifestyle space that had the ability to integrate human assistance with built-in artificial intelligence. Gondal realized that while people were adopting wearable technology solutions for healthy living, there was still a lack of awareness and an air of hesitancy about the usefulness of and need for wearable devices in India. Gondal's dilemma: whether to continue GOQii's positioning as "wearable technology with personalized coaching" and aggressively expand globally, or consolidate and broaden his present offering by embracing the customer more fully and focusing on the "customer healthcare journey" in India. Case B picks up from October 2016, by which time GOQii had consolidated and broadened its offering by focusing on the "customer journey" in India. It had successfully on-boarded different service providers such as doctors, a diagnostic center chain, a hospital chain, sports and grocery stores and Axis Bank (for payments) on their platform, thus providing a complete health ecosystem to the GOQii user. By the second quarter of 2016, GOQii had achieved the number one spot in the Indian wearables market. The immediate decision that GOQii core team need to make is whether they should tie up with multiple insurance providers or explore the possibility of partnering with a reinsurer to complete the entire health spectrum services offering on their data platform. The two cases allow for an in-depth discussion on the key role of a business model in ensuring the competitive advantage and sustained success of a business venture.
Swot Analysis of "GOQii: Envisioning a New Fitness Future (B)" written by Sonia Mehrotra, Arun Pereira includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Goqii Goqii's facing as an external strategic factors. Some of the topics covered in GOQii: Envisioning a New Fitness Future (B) case study are - Strategic Management Strategies, Technology and Innovation & Entrepreneurship.
Some of the macro environment factors that can be used to understand the GOQii: Envisioning a New Fitness Future (B) casestudy better are - – competitive advantages are harder to sustain because of technology dispersion, increasing inequality as vast percentage of new income is going to the top 1%, talent flight as more people leaving formal jobs, technology disruption, central banks are concerned over increasing inflation, there is backlash against globalization, supply chains are disrupted by pandemic ,
increasing commodity prices, digital marketing is dominated by two big players Facebook and Google, etc
Introduction to SWOT Analysis of GOQii: Envisioning a New Fitness Future (B)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in GOQii: Envisioning a New Fitness Future (B) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Goqii Goqii's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Goqii Goqii'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 GOQii: Envisioning a New Fitness Future (B) can be done for the following purposes –
1. Strategic planning using facts provided in GOQii: Envisioning a New Fitness Future (B) case study
2. Improving business portfolio management of Goqii Goqii's
3. Assessing feasibility of the new initiative in Innovation & Entrepreneurship field.
4. Making a Innovation & Entrepreneurship topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Goqii Goqii's
Strengths GOQii: Envisioning a New Fitness Future (B) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Goqii Goqii's in GOQii: Envisioning a New Fitness Future (B) Harvard Business Review case study are -
High brand equity
– Goqii Goqii's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Goqii Goqii's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Ability to lead change in Innovation & Entrepreneurship field
– Goqii Goqii's 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 Goqii Goqii's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Sustainable margins compare to other players in Innovation & Entrepreneurship industry
– GOQii: Envisioning a New Fitness Future (B) firm has clearly differentiated products in the market place. This has enabled Goqii Goqii's to fetch slight price premium compare to the competitors in the Innovation & Entrepreneurship industry. The sustainable margins have also helped Goqii Goqii's to invest into research and development (R&D) and innovation.
Cross disciplinary teams
– Horizontal connected teams at the Goqii Goqii's 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.
Training and development
– Goqii Goqii's has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in GOQii: Envisioning a New Fitness Future (B) 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.
Effective Research and Development (R&D)
– Goqii Goqii'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 GOQii: Envisioning a New Fitness Future (B) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Diverse revenue streams
– Goqii Goqii's is present in almost all the verticals within the industry. This has provided firm in GOQii: Envisioning a New Fitness Future (B) 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.
Successful track record of launching new products
– Goqii Goqii's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Goqii Goqii'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.
Digital Transformation in Innovation & Entrepreneurship segment
- digital transformation varies from industry to industry. For Goqii Goqii's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Goqii Goqii's 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.
Innovation driven organization
– Goqii Goqii's is one of the most innovative firm in sector. Manager in GOQii: Envisioning a New Fitness Future (B) Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Organizational Resilience of Goqii Goqii's
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Goqii Goqii's does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Goqii Goqii's 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 Goqii Goqii's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in GOQii: Envisioning a New Fitness Future (B) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Weaknesses GOQii: Envisioning a New Fitness Future (B) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of GOQii: Envisioning a New Fitness Future (B) are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the GOQii: Envisioning a New Fitness Future (B) 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 Goqii Goqii's has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Goqii Goqii's, firm in the HBR case study GOQii: Envisioning a New Fitness Future (B) needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study GOQii: Envisioning a New Fitness Future (B), it seems that the employees of Goqii Goqii'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.
No frontier risks strategy
– After analyzing the HBR case study GOQii: Envisioning a New Fitness Future (B), it seems that company is thinking about the frontier risks that can impact Innovation & Entrepreneurship 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.
Lack of clear differentiation of Goqii Goqii's products
– To increase the profitability and margins on the products, Goqii Goqii's needs to provide more differentiated products than what it is currently offering in the marketplace.
High cash cycle compare to competitors
Goqii Goqii's 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.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Goqii Goqii's is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study GOQii: Envisioning a New Fitness Future (B) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
High operating costs
– Compare to the competitors, firm in the HBR case study GOQii: Envisioning a New Fitness Future (B) 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 Goqii Goqii's 's lucrative customers.
Increasing silos among functional specialists
– The organizational structure of Goqii Goqii's is dominated by functional specialists. It is not different from other players in the Innovation & Entrepreneurship segment. Goqii Goqii's needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Goqii Goqii's to focus more on services rather than just following the product oriented approach.
Interest costs
– Compare to the competition, Goqii Goqii'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 GOQii: Envisioning a New Fitness Future (B) HBR case study mentions - Goqii Goqii'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.
Opportunities GOQii: Envisioning a New Fitness Future (B) | 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 GOQii: Envisioning a New Fitness Future (B) are -
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 Goqii Goqii's in the consumer business. Now Goqii Goqii's can target international markets with far fewer capital restrictions requirements than the existing system.
Developing new processes and practices
– Goqii Goqii's can develop new processes and procedures in Innovation & Entrepreneurship industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Learning at scale
– Online learning technologies has now opened space for Goqii Goqii'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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Innovation & Entrepreneurship industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Goqii Goqii'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. Goqii Goqii'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.
Leveraging digital technologies
– Goqii Goqii's can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Goqii Goqii's 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.
Low interest rates
– Even though inflation is raising its head in most developed economies, Goqii Goqii'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.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Goqii Goqii's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Buying journey improvements
– Goqii Goqii's can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. GOQii: Envisioning a New Fitness Future (B) 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.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Goqii Goqii's is facing challenges because of the dominance of functional experts in the organization. GOQii: Envisioning a New Fitness Future (B) 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.
Creating value in data economy
– The success of analytics program of Goqii Goqii's has opened avenues for new revenue streams for the organization in the industry. This can help Goqii Goqii's to build a more holistic ecosystem as suggested in the GOQii: Envisioning a New Fitness Future (B) case study. Goqii Goqii's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Goqii Goqii'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 Goqii Goqii's to hire the very best people irrespective of their geographical location.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Innovation & Entrepreneurship industry, but it has also influenced the consumer preferences. Goqii Goqii's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Threats GOQii: Envisioning a New Fitness Future (B) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study GOQii: Envisioning a New Fitness Future (B) are -
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. Goqii Goqii'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.
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 Goqii Goqii's.
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. Goqii Goqii's needs to understand the core reasons impacting the Innovation & Entrepreneurship industry. This will help it in building a better workplace.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study GOQii: Envisioning a New Fitness Future (B), Goqii Goqii'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 Innovation & Entrepreneurship .
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Goqii Goqii'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 GOQii: Envisioning a New Fitness Future (B) .
Easy access to finance
– Easy access to finance in Innovation & Entrepreneurship field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Goqii Goqii's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
High dependence on third party suppliers
– Goqii Goqii's high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Increasing wage structure of Goqii Goqii'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 Goqii Goqii's.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Goqii Goqii's in the Innovation & Entrepreneurship industry. The Innovation & Entrepreneurship 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.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Environmental challenges
– Goqii Goqii'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. Goqii Goqii's can take advantage of this fund but it will also bring new competitors in the Innovation & Entrepreneurship industry.
Shortening product life cycle
– it is one of the major threat that Goqii Goqii's is facing in Innovation & Entrepreneurship 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 Goqii Goqii's in the Innovation & Entrepreneurship sector and impact the bottomline of the organization.
Weighted SWOT Analysis of GOQii: Envisioning a New Fitness Future (B) 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 GOQii: Envisioning a New Fitness Future (B) 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 GOQii: Envisioning a New Fitness Future (B) 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 GOQii: Envisioning a New Fitness Future (B) 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 GOQii: Envisioning a New Fitness Future (B) 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 Goqii Goqii's needs to make to build a sustainable competitive advantage.
