Contents

• Executive summary
• Introduction
• Biotechnology Industry with its own Value Chain
• A Disruptive Invention
• The Need for Strategic Alliances
• Conclusion
• References

Description

Biotechnology is a recent entrant to the commercial production and manufacturing. Although, the industry is relatively new it is making news due to its disruptive nature to the existing markets of the mainstream industries. The mainstream industries such as pharmaceutical and chemical industries have their own establishes value chain for long. However, they too are looking for newer inventions and processes to increase their market presence and to achieve more profitability. Since biotech firms often come up with disruptive inventions it appears natural that they too start their own value chain the translate the innovations into commercially viable products. However, it is easier said than done. Market management needs a lot of expertise, experience and resource in order to make sizeable impact. Also, manufacturing activities require space, financial resources and sophisticated equipment. Although. biotech companies have the option to start own value chain, or sell the innovation for a huge one off profit, the paper recommends biotech companies to form strategic alliances with mainstream companies with existing manufacturing facilities and distribution channels in order to achieve continued presence and sustainable competitive advantage in the market.