The case talks about a Biotechnology Company named Genentech and how Roche acquired it. The case discusses the challenges and opportunity Genentech is facing after the acquisition and how it has impacted Genentech.
Q1 Perform a VRIO analysis. What is Genentech’s competitive advantage, if any?
Value
Genentech employs best scientist in the world and it encourages them to pursue projects not only associated to the company’s goal, but also to each scientist personal interest.
The company foster creative and innovative environment that leads to scientific discoveries
Continuous development of high quality drugs, which are supported by tremendous amount of research.
Rarity
The company has a very large Research Center, which …show more content…
Up until 2009, the company has held more than 7,400 current patents and had approximately the same amount pending patent applications. Currently they hold 11,300 patents1.
Imitability
The companies has large number of patent that are difficult to imitate and also stay for a long period of time
The company has a competitive advantage due to its large facilities that has the best scientist in the world.
Herbert Boyer, the founder of Genentech holds the first major patent in Biotechnology.
Organization
The company has a value stream that is based on sophisticated and advanced methods that it uses to create its products.
High spending on research and development that enables Genentech to develop its current drugs and produce new ones.
Fostering of an innovative culture and was voted for 16th conservative years by fortune magazine as one of the best 100 company to work for in the US.
The company invests heavily in market research and strives to meet critical medical needs.
Patent protection
VRIO Framework Valuable Rare Difficult to Imitate Exploited by the organization Competitive implication
Best Scientist Yes No No Yes Competitive