Strategic Management Case Study: Biocon India
The case study reveals that Biocon India is in a difficult position as its subsidiary, Clinegene, threatens to dilute its position. Nonetheless, Clinegne represents an opportunity for the company to grow and not only have a firm grip on the Indian market, but also internationally. On that account, the firm needs to develop a generic strategy that is beneficial for both entities.
To that extent, to achieve a net growth, Biocon India Group definitely needs to increase its market share. To avoid the situation where the parent firm is overshadowed by its subsidiary, a simple yet costly approach could be the deployment of a future Clinical Research Organization (CRO). Consequently, this will lead to the increase of the expertise and skill, and maintenance of stability within the organizational culture, and the relationship between the company and its clients (Kor & Mesko, 2013). Further, the assurance and assistance of the Quality Assurance Company, in regards to the quality of Biocon products, should encourage and motivate the company to expand its market base, in spite of the distraction from Clingene; this is due to trust and sharing of corporate values among the company’s employees (Kapferer, 2012,). The high potential growth of the CRO might prove to be advantageous Biocon as it will facilitate the opportunity and scope to Clingene in regards to the conscious and careful examination and positioning within the rug research market; this is a win-win strategy.
Overall, Biocon India needs to expand its operations to avoid the situation whereby its position is diluted by Clingene. By exploring a prospective CRO, the from would be able to enhance its skill and expertise. Further, it will give Clinegene that chance to expand its scope whilst still maintaining Biocon’s core culture.
References
Kapferer, J.N., (2012). The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers.
Kor, Y.Y.& Mesko, A. (2013). Dynamic managerial capabilities: Configuration and orchestration of top executives’ capabilities and the firm’s dominant logic. Strategic Management Journal, 34(2), pp.233-244