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23andme New Entrants

Satisfactory Essays

Threat of new entrants
Since 23andme has established themselves as a company with successful technology that can relay important genetic information to their customers, and since they have gathered the DNA of over two million people, it would be extremely difficult for new entrants to infiltrate the market. The biotechnology industry and genetic testing specifically is a very expensive venture to start, and since 23andme was a first mover with this genetic testing, they received large investments from companies that saw the benefit of this genetic data collection. These investors and other big companies would probably not be willing to fund a company that intends to compete with 23andme, because 23andme is already so well established and have the technology and experience to be more reliable than a startup. There is little threat of new entrants for 23andme.

Threat of substitutes …show more content…

Other players in the biotechnology industry such as Celmatix (a fertility genetic testing company) wants to partner with 23andme so that Celmatix can access the millions of user’s DNA that 23andme has collected, while they have done extensive research and testing to find solutions and treatments for infertility. It seems that even big players in this industry are looking to access 23andme’s data collection through partnerships and business deals, but cannot actually substitute 23andme because they do not have access to the millions of genetic information that 23andme has

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