Case Study 27 Genentech 060315

Topics: Biotechnology, Genentech, New product development, Pharmaceutical industry, Product management, Project management / Pages: 4 (1095 words) / Published: Jun 7th, 2015
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 piqued their own interests. The overall culture led to a highly productive environment labeled by insiders as "casual intensity."

2. Apply a PESTEL analysis. What impact will changes in health care and biogenerics regulation have on Genentech? Why?
PESTAL analysis shows that the Political, Legal, Economic, and Social-Cultural environments were changing significantly in the biotechnology sector by the late 2000 's. The economic stimulus package and the Healthcare Reform Act were both bringing about increased government oversight to the industry, which could mean that time to market for new products could be increased and the potential that some products would not receive accreditation from regulating bodies meaning that sales and revenue could be impacted.
Specific aspects of the Healthcare Reform Act also posed serious threat to Genentech 's business model. The passage of the Biologics Price Competition and Innovation Act allowed for a shortened approval pathway for biogeneric drugs, which would have a significant impact on Genentech, because of the significant costs associated with product development and testing in the industry.
3. Apply a five forces analysis. How would you describe Genentech’s competitive position?

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