Genzyme Case
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Introduction
Genzyme is a biotechnology company which researches, develops, manufactures, and markets products for human healthcare. Its main product Ceredase achieved great success in past several years. This essay mainly discusses the strategic challenges Genzyme Corporation faced in managing Orphan Drug market. We use Michael Porters Five Force Model and Value Chain Chart as analysis tools to analyze the external and internal environment. Based on the problems discovered, we launched four recommend strategies: manage macro-environment, master supply chain, control competition, and optimize internal system.
Situation Analysis
External Environment Analysis (see appendix 1)
Based on Michael Porters Five Force Model we can see that problems lie in the following several aspects. The first problem is the uncertainty of political environment. Although the special drug regulation in domestic market provides Ceredase great advantages, we cannot ignore the potential new price regulation, which will largely affect Ceredases profit. At the same time, the overseas political environment also hinders selling Ceredase in those countries. Secondly, capital market begins to lose interest in biotech industry, which will raise problems for Genzyme to seek further financial support...