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Case Study 27 Genentech 060315

Satisfactory Essays

BUSB 481 - Professor Coulson
Case 27 - Genentech: After the Acquisition by Roche
Terry Fender
June 3, 2015
1. Perform a VRIO analysis. What is Genentech’s competitive advantage, if any?
The significant resource that led to Genentech 's competitive advantage was culture. This culture was instilled by it 's founding partners Robert Swanson and Herbert Boyer. In this culture R&D focused on applying leading edge scientific knowledge to discover and develop best-in-class medicines. The culture of "individual creativity and initiative," helped to establish a reputation that attracted some of the best scientists in the world who were encouraged not only to work on projects associated with the companies goals, but also to work on projects that …show more content…

Weaknesses:
- Dependency on oncology related drug therapeutics.
- Limited product diversification.
- Few original drugs in development pipeline.
- Culture clash with parent company (Roche).
- Few late stage development activities.
- Lengthening time to market as a result of limited FDA approvals.
- Recent failures in Phase III clinical trials.
Opportunities:
- Room for expansion into new therapeutic regimes.
- Continued demand and growth potential for oncology related drugs.
- Continued research and product development to satisfy unmet needs in immunology.
Threats:
- Increasing competition from other pharmaceutical companies entering biotechnology markets.
- Increased government regulation and intervention in CER program.
- Biogeneric drugs entering marketplace and taking advantage of shortened FDA approval process.
- Price controls resulting from healthcare reform laws.
5. What impact will the Roche buyout have on Genentech? Will it be possible for Roche to own Genentech without destroying its ability to innovate?
The buyout of Genentech by Roche will have a major impact on the focus of the company as Roche places a strong emphasis on bringing products to market. Genentech preferred to devote significant resources to early drug discovery, but Roche wanted those resources focused on Phase III development in order to bring more products to market. Another impact was a significant consolidation of resources by closing down some of Genentech 's research locations

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