Genentech Internal Analysis
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 series of transformations from the discovery of drugs to the distribution involving several support functions. 2.1. Support Activities
Procurement: The company has a strong focus on cultivating a diverse supplier pool in order to maximize quality and talent available to Genentech, which gives the company access to unique outside resources.
Technology Development: Genentech is well-known for its research and invests heavily in the development of manufacturing and research facilities.
Human Resources Management: Genentech has a reputation for scientific excellence and giving its researchers wide autonomy. Therefore, its post-doctoral program attracts the most talented scientists and researchers from all over the world. For the last 13 years, Genentech has been ranked among the top companies to work for and in 2006 it was even voted as the best company to work for in the world by Fortune Magazine. Thus the company’s Human Resources Management and its science-driven culture enable it to attract talents, which are vital for the success of its business.
The Firm’s Infrastructure: The firm is well-equipped with infrastructure in the fields of research and manufacturing, as will be
Typically, a value chain in the biotechnology industry refers to a series of transformations from the discovery of drugs to the distribution involving several support functions. 2.1. Support Activities
Procurement: The company has a strong focus on cultivating a diverse supplier pool in order to maximize quality and talent available to Genentech, which gives the company access to unique outside resources.
Technology Development: Genentech is well-known for its research and invests heavily in the development of manufacturing and research facilities.
Human Resources Management: Genentech has a reputation for scientific excellence and giving its researchers wide autonomy. Therefore, its post-doctoral program attracts the most talented scientists and researchers from all over the world. For the last 13 years, Genentech has been ranked among the top companies to work for and in 2006 it was even voted as the best company to work for in the world by Fortune Magazine. Thus the company’s Human Resources Management and its science-driven culture enable it to attract talents, which are vital for the success of its business.
The Firm’s Infrastructure: The firm is well-equipped with infrastructure in the fields of research and manufacturing, as will be