Genentech Internal Analysis Essay

Words: 1311
Pages: 6

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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The whole consistent marketing approach creates trust and good relationships with the patients which can results in customer loyalty. This can give the company a competitive advantage if patents expire. Service: Genentech is committed to patients having access to their therapies. Since 1985, the company has donated approximately $1.5 billion in free medicine to uninsured patients. This can also support the already mentioned customer loyalty. It also opens a source for clinical studies and valuable feedback. 2. C1. R & D generation
C2. Time-to-market
C3. Customer relations
C4. Public / institutional relations
C5. Product portfolio / patents
C6. Marketing
R1. Manufacturing facilities
R2. Brand name / reputation
R3. Human resources
R4. Research infrastructure

Resources and Capabilities Matrix

Relative Strength

3. Strategic Implications
Given the internal analysis of the company, one can see that the key strengths of Genentech are its Human Resources Management, extensive, innovative Research and Development as well as a strong and diversified product portfolio and well-equipped manufacturing facilities, which are also vital for its success. Genentech should ensure to sustain these strengths by further collaborating with research institutes, leading universities and other companies in this field. Moreover attempts in the Human Resources field to attract employees from