Roche is a Swiss pharmaceutical company, a pioneer in healthcare, provider of personalized healthcare and in vintro diagnostics, world largest biotech organization, the global leader in cancer treatments, and a committed investor in innovation. Furthermore, a particular feature of Roche is that it provides an extraordinary workplace. The company employs over 90,000 people from more than 100 countries (Roche, 2017a). Thus, Roche has the status of an organization that is chosen by employees. The purpose of the company is to deliver urgent medical solutions and develop innovations for the future. The business priorities of Roche are to focus attention on patients, demonstrate excellence in science, provide sustainable value and personalized healthcare. The main functions of Roche are discovery, development, and delivery of therapeutic products, innovative diagnostics, and early detection and prevention of diseases (Roches Competitive Advantage, 2014). Although Roche has a proper strategy, resources, and high performance, it should improve the strategy to retain its sustainability and competitive advantage.
The Strategy of Roche
The strategy of Roche is to find new medicine and diagnostics that evolve the practice of medicine, improve human lives, and help patients live longer. The strategy of the company is guided by its purpose, which involves implementing the necessary medicine for the future (Roche, 2017a). It is obvious that the companys strategy is dynamic and perspective because it presupposes research and science, which differentiates Roche from its competitors. Roche is the leader in the pharmaceutical industry as its strategy helps the company develop quicker compared to other organizations. The business strategy of the company addresses such segments of the target group as healthcare professionals and patients that seek detection, prevention, and treatment of diseases (Roches Competitive Advantage, 2014). Furthermore, Roches strategy focuses on differentiated medicine that contributes to the solution of many healthcare issues which are not defined by other healthcare organizations. Finally, the strength of Roches strategy is that it is personalized and improves the survival of patients, their quality of life and health.
Resources of Roche
Roche has enough resources to innovate, suggest new ideas, and remain progressive. The company uses raw materials to manufacture medicine and conduct innovative research. However, Roche follows the principle of conserving resources, protecting the health of their employees, and avoiding damage to the environment. Human resources belong to the valuable assets of the company as it employs over 90,000 people that need the constant training and learning (Roche, 2017a). The advantage of the company is that it has diagnostic techniques and medicines; therefore, the main resources of Roche are distributed between Diagnostics and Groups Pharmaceutical Divisions. As the company is committed to research and innovation, it has many laboratories and research centers that demand additional investment. All resources of the company are used to produce pharmaceutical products and diagnostics services. For example, the company has reliable instruments for rapid disease diagnosis and screening in laboratories (Roche, 2017a). As the positioning of Roche presupposes providing benefit to customers and healthcare organization, it means that the company uses its resources to a full extent and is ready to invest as much as possible to achieve its business strategy.
Performance of Roche
In 2016, the performance indicators of Roche were value for patients, value for employees, value for partners, value for communities and the environment, and value for investors. Thus, 26,500,000 patients received treatment with top 25 Roche medicines (Roche, 2017b). In addition, the company provided 127,500,000 patients with off-patent medicine (Roche, 2017b). Moreover, the company increased pharmaceutical sales to 28% (Roche, 2017b). Last year, the number of full-time employees increased to 94,052 (Roche, 2017b). The internal recruitment rate was 54.6% and the external recruitment rate was 45.4% (Roche, 2017b). It is necessary to mention that the company demonstrated positive tendencies in female recruitment. Consequently, the percentage of women occupying key leadership roles increased to 26.1% and the percentage of females holding managerial positions was 41.5% (Roche, 2017b). Furthermore, in 2016, Roche increased the number of suppliers to 12,200 (Roche, 2017b). The company demonstrated high performance in terms of interaction with the environment and communities. For example, its income taxes were 4,735, which proves that Roche supported many environmental and social projects. Thus, the companys performance undergoes constant improvement, especially in relation to diagnostics and treatment of cancer.
The Advantages of Roche
Roche is particularly good at research and diagnostics services. Thus, biotechnology services are the driving force of the companys revenues, which are increasing at an impressive rate. Furthermore, Roche shows that it is not enough to sell pharmaceutical products; there is a need to focus attention on research and innovation. Moreover, the companys advantage is the development of the R&D strategy that the company develops in oncology treatment. Despite a decline in the pharmaceutical industry, Roche shows growth and progress in the R&D productivity and dominance in the growing cancer market (Roche, 2017b). First, the company has one of the most profitable and strongest portfolios in the cancer therapeutics market. For example, Roches major drugs such as Herceptin, Avastin, and Rituxan can be used for the treatment of different types of cancer: colorectal cancer, breast cancer, and blood cancer (Roches Competitive Advantage, 2014). The companys success in this area is obvious as the companys sales of cancer drugs totaled $21.8 billion, which constitutes 62% of its pharmaceutical business (Roche, 2017b). Oncology is a strong side of Roche as the company developed several biologics to treat cancer. In addition, the company is the only firm that produces oseltamivir, which is a drug against swine flu.
The Necessary Improvements
Roche should not focus its attention only on the achievements in oncology. It should proceed to develop drugs for diabetes, cardiovascular diseases, and viruses. It means that the company should continue research and innovation in healthcare and produce more pharmaceutical improvements. In addition, it is necessary to implement new drugs that would become alternative for treatment of many diseases. Furthermore, it is a must for Roche to improve affordability of its products and services. The company employs value-based pricing; however, many customers do not have access to medicines and diagnostics services. Therefore, Roche should provide a more flexible and diverse system of insurance. Consequently, there is a necessity for improvement of health insurance coverage to make the system of public and private insurance broader and more accessible. In addition, it is recommended to incorporate patient assistance programs that would provide a possibility to reimburse or partially reimburse products and services obtained from the company. Finally, Roche should study the healthcare organizations needs and collaborate with them to prove the nobility of its strategy and objectives.
The Competitive Position of Roche
The competitive advantage of Roche is that the company is favorable workplace, a leader in the oncology treatment, and a provider of unique diagnostics services that are costly to imitate. The main competitors of Roche are Glaxosmithkline PLC, Novartis AG, and Sanofi (Roches Competitive Advantage, 2014). Moreover, the company should compete with all organizations that operate in pharmaceutical manufacturing, manufacturing sector, and biotechnology product manufacturing. However, the main competitive advantage of Roche is innovation, which proves that the company wants to exceed competitors objectives and customers expectations. Furthermore, the competitiveness of Roche is seen in its intention to transform novel ideas into medicines. In addition, the company demonstrates excellence in both diagnostics and pharmaceutical treatment.
SWOT-Analysis of Roche
The outlined strengths of Roche will provide the basis for future projects, innovative ideas, and revolutionary products that will contribute to healthcare and improve peoples health status across the world. As the companys products and services are presented in Australia, Asia, Europe, America, and Africa, it manages to occupy a large part of the market and compete with other pharmaceutical firms that complain of decline and crisis. The given weaknesses prove that the pharmaceutical industry poses many dangers that can influence the companys reputation and have a negative impact on its brand image and products. Moreover, the company should develop a way to protect itself from fake products as they can adversely affect companys reputation and positive corporate image. The given opportunities show that Roche has many possibilities for further progress. Its resources and business strategy contribute to new alliances and more investment in research and development. In addition, Roche should focus attention on healthcare needs and implement them through innovation as an individual approach to every customer is the basis for an increase in the customer base. Moreover, the companys experience and financial success can become a driving force for new changes and improvements in healthcare. The defined threats prove that Roche should be very attentive and sensitive to changes in the market as they can have a negative impact on its product strategy.
1. A great number and diversity of employees present all over the world.
2. Leadership in manufacturing cancer drugs.
3. Innovation in pharmaceutics and diagnostics.
4. Manufacturing a drug against swine flu.
5. Focus on production of biotechnological products.
6. Collaboration with large pharmaceutical companies.
1. Imitation of products.
2. The probability of fake medicines.
3. Availability of products in certain countries.
1. Strategic partnership and agreements with other pharmaceutical companies.
2. Increasing demand for companys products and services.
3. Penetration in new markets.
4. Increasing healthcare needs.
1. Intense competition.
2. Global financial fluctuations.
3. Economic slowdown.
4. Severity of the regulatory environment.
5. Risk of failure of new products.
I am optimistic about Roches future as its strategy is aimed to not only gain profits but also influence the situation in the pharmaceutical market. Moreover, the company has enough resources to develop new products and services and innovate in the pharmaceutical and diagnostics areas and treat all types of cancer and other serious diseases. The performance of Roche shows that the company uses all possibilities to increase the indicators of value, patients, suppliers, and employees. I believe that next year, all performance indicators will increase as the company has demonstrated excellent achievements in the oncology area. It is obvious that Roche has a competitive advantage due to its focus on innovation and research, which are the driving forces of medicine. Thus, the company should not study competitors actions but healthcare needs to retain its competitive advantage and sustainability. Without a doubt, Roche should improve its position making its products and services more affordable, make the system of public and private insurance broader, and implement patient assistance programs. The competitive position of Roche is favorable as its services are unique, especially in the spheres of research and diagnostics. I am optimistic about Roches future because the company does not imitate competitors and manufacture the existing products but tries to be an innovator and present products and services that will be helpful for the humanity.