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 - – increasing transportation and logistics costs, increasing government debt because of Covid-19 spendings, customer relationship management is fast transforming because of increasing concerns over data privacy, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, cloud computing is disrupting traditional business models, challanges to central banks by blockchain based private currencies,
there is increasing trade war between United States & China, increasing household debt because of falling income levels, 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 -
Analytics focus
– Goqii Goqii's 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 Sonia Mehrotra, Arun Pereira 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 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.
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.
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.
Operational resilience
– The operational resilience strategy in the GOQii: Envisioning a New Fitness Future (B) Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Highly skilled collaborators
– Goqii Goqii'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 GOQii: Envisioning a New Fitness Future (B) HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
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.
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.
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.
Low bargaining power of suppliers
– Suppliers of Goqii Goqii's in the sector have low bargaining power. GOQii: Envisioning a New Fitness Future (B) has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Goqii Goqii's to manage not only supply disruptions but also source products at highly competitive prices.
Strong track record of project management
– Goqii Goqii'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.
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 -
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study GOQii: Envisioning a New Fitness Future (B), is just above the industry average. Goqii Goqii's needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Need for greater diversity
– Goqii Goqii's 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 GOQii: Envisioning a New Fitness Future (B) 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 GOQii: Envisioning a New Fitness Future (B) can leverage the sales team experience to cultivate customer relationships as Goqii Goqii's is planning to shift buying processes online.
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.
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.
Slow decision making process
– As mentioned earlier in the report, Goqii Goqii's 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. Goqii Goqii's 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.
Skills based hiring
– The stress on hiring functional specialists at Goqii Goqii's 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.
Capital Spending Reduction
– Even during the low interest decade, Goqii Goqii's 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.
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.
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.
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.
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 -
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Goqii Goqii's 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, GOQii: Envisioning a New Fitness Future (B), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Loyalty marketing
– Goqii Goqii's 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.
Using analytics as competitive advantage
– Goqii Goqii's 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 GOQii: Envisioning a New Fitness Future (B) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Goqii Goqii's to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Goqii Goqii's can use these opportunities to build new business models that can help the communities that Goqii Goqii's operates in. Secondly it can use opportunities from government spending in Innovation & Entrepreneurship sector.
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.
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.
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.
Better consumer reach
– The expansion of the 5G network will help Goqii Goqii's to increase its market reach. Goqii Goqii's 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.
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.
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.
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.
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.
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 -
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.
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.
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.
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.
Consumer confidence and its impact on Goqii Goqii'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.
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 .
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 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Goqii Goqii's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Regulatory challenges
– Goqii Goqii'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 Innovation & Entrepreneurship 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. 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.
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.
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 Goqii Goqii's business can come under increasing regulations regarding data privacy, data security, etc.
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.