Elizabeth Holmes and Theranos ‘scam’
How did she show her expertise?
Elizabeth showed her expertise by explaining how, in the last 11 years, she has been performing comprehensive tests on a few drops of blood. The blood samples were taken from a finger instead of the traditional methods where blood was taken from the arm.
What was her customer orientation?
Her customer orientation were the ones who were looking for a cheaper cost for blood tests. Additionally, most of the customers were afraid of the blood being taken from their arms, and they loved the blood being taken from the finger.
How did she create dependability?
To create dependability, Elizabeth partnered with Walgreens to perform public blood tests. Blood samples taken through Walgreens could have tests done using a third-party test machine from Siemens instead of the Edison, which was made by Theranos.
How did she use candor to build trust?
She used candor by explaining that she personally does not like the blood samples being taken from the arm, and that was the reason for inventing the Theranos. Additionally, Elizabeth ensured that Theranos board of directors was made of people close to the government, such as the former secretaries of state and other influential people such as Henry Kissinger.
How did she show compatibility?
She showed compatibility by employing a qualified and creative team to create a strong consumer brand that will sell and attract more investors. Various Theranos customers were reached out and were asked to tell their story and experience with Theranos.
Step 2
The sales pitch I have watched is a Shank Tank sales pitch for a company called Red Dress boutique seeking equity funding.
The audience was the ‘Sharks’ who, if convinced by the pitch, would fund the company and own a percentage of the company.
The selling technique used is that they gave the sharks gifts in the name of ‘treats.’ Also, they displayed some of the clothes they were selling in their shop.
There was no unethical behavior during the presentation, as they were trying to win the trust of the sharks. They were in a jovial mood, and they were giving a detailed explanation about their operations.