Genentech Internal Analysis

1319 Words Feb 22nd, 2011 6 Pages
Genentech is one of the world’s leading biotechnology companies focusing on therapies for cancer, heart attacks and others. Its industry is marked by rapid and accelerating (technological) change, thus internal resources and capabilities form the main basis for competitive advantage and strategic orientation. In line with this resource-based view this essay will analyze the company’s resources and capabilities following Porter’s “Value Chain“ approach. Building on this they will be evaluated in terms of relative importance and strengths in order to conclude the main strengths and weaknesses of Genentech and derive strategic implications. 1. Value Chain Analysis
Typically, a value chain in the biotechnology industry refers to a
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Its manufacturing capacity is larger than the capacity of the rest of the world. It has developed standardized manufacturing platforms which are flexible enough to quickly adjust to the production of new products. That significantly reduces the time-to-market because there is no need for a new plant for every product. The acquisition through Roche has also given Genentech access to Roche’s extensive manufacturing facilities worldwide and it is cooperating with other companies in this field.

Outbound Logistics: This involves the transport of finished products from research facilities to the hospitals, pharmacies and clinics. Marketing and Sales: Being often accredited as the founder of biotechnology, Genentech benefits from a strong brand name and reputation especially in the US. It also has strong credibility in respect to institutions and the government, enabling it to consult and influence regulatory bodies. In its marketing strategy the company emphasises educating healthcare providers and other stakeholders about the science behind the medicine instead of focussing purely on sales targets. However, Genentech’s very specialised products in combination with this quality-based consulting of consumers limit its ability to mass-market products. In terms of pricing Genentech has created a unique relationship with their customers by

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