23andMe’s Business Strategy is Disrupting the Genetic Testing Industry
In recent years, the interest in genetic testing has grown significantly as people want to learn more about their ancestry and potential health risks. Companies like 23andMe have capitalized on this trend and created a business model that not only provides consumers with valuable information, but also disrupts the traditional way genetic testing is done. In this article, we’ll look at 23andMe’s business strategy and how it’s changing the genetic testing industry.
Background
23andMe was founded in 2006 with the goal of empowering people with their genetic information and creating a world where everyone can benefit from it. Since its inception, the company has grown significantly and is now considered one of the leading providers of direct-to-consumer genetic testing. Unlike traditional genetic testing that requires a doctor’s prescription, 23andMe’s model allows anyone to order a test kit online and receive their results in the comfort of their own home.
Disrupting the Industry
The way 23andMe has disrupted the genetic testing industry is by making it accessible to the general public. Prior to their business model, people had to visit a doctor, undergo a medical exam, and get a prescription before getting a genetic test. This was not only time consuming, but also expensive, with tests costing thousands of dollars. 23andMe’s direct-to-consumer model allows anyone to get tested for less than $200, and receive their results within weeks.
Another way 23andMe has disrupted the industry is by providing consumers with more than just ancestry information. In addition to the basic ancestry information, people can also get information about their health risks and carrier screenings for certain diseases. This valuable information can help people make informed decisions about their health and potentially prevent diseases from developing in the future.
23andMe has also disrupted the industry by creating an online community where people can connect with others who have similar genetic backgrounds. This not only provides people with a sense of belonging but also helps researchers gather valuable data on genetic traits and diseases.
Challenges and Controversies
Despite its success, 23andMe has faced challenges and controversies. In 2013, the FDA sent a warning letter to the company stating that they were marketing their tests without FDA clearance. The FDA was concerned that the tests could provide inaccurate results, potentially leading to misdiagnosis and inappropriate treatment.
In response, 23andMe stopped providing health-related information and focused solely on ancestry testing. However, in 2015, the FDA approved the company’s application to market its genetic testing kits for specific health risks, including carrier screenings for certain diseases.
Conclusion
In conclusion, 23andMe’s business strategy has disrupted the genetic testing industry by making it accessible to the general public and providing consumers with valuable information about their ancestry and health risks. Their innovative approach has allowed them to gain a significant market share and establish themselves as a leader in the industry. However, challenges and controversies have arisen, and the company must ensure that its tests are accurate and meet regulatory requirements. As genetic testing continues to grow in popularity, it will be interesting to see how 23andMe and other companies in the industry continue to innovate and adapt to meet the changing needs of consumers.
