Biocon India Group’s Strategy for the Future

Biocon Strategy for the Future

Clayton Bell

Trine University

Abstract

Organizations come and go in a blink of an eye. With the release of the MP3 player, many companies tried their hand at creating the next great model, most of those companies don’t exist today. What set Apple apart from the rest of its competitors? It’s the strategy the leaders of Apple worked on creating and maintaining. Apple is known for their innovation and taking big chances on what the future might hold. The introduction of the iPod and its counterpart the iTunes store received speculation in how far this concept could carry. After almost 20 years, Apple’s iPod still generates a substantial portion of its annual income. After its release, they continued to be strategic in planning what would come next. By constantly innovating, they have control over the future by offering products consumers weren’t aware they wanted or need.

Biocon Strategy for the Future

Biocon India Group

Pharmaceutical business in the western world is constantly evolving. Companies are under a great deal of pressure to continually advance, control and cure existing diseases, as well as find treatments for new conditions. Biocon India Group, a key player in the pharmaceutical industry, resides in the India market. Kiran Mazumdar-Shaw, the founder of Biocon had received her education in becoming a master brewer. The culture in India at the time was not accepting of women in the field. Mazumdar-Shaw spanned boundaries but looking for the most effective use of her talents in an industry that would not discount her based on gender (Hughes, Beatty, & Dinwoodie, 2014). She formed Biocon to produced enzymes in a multitude of manufacturing purposes. The company’s initial success stemmed from their dedication to understanding the fermentation processes based on the techniques of Japanese natives (Kalegaonkar, Locke, & Lehrich, 2008).

In the mid-1990’s Biocon invented a fermentation reactor that could reduce waste and inefficiency, while increasing the overall process. It was these advancements in enzyme production that lead Biocon to see the possibilities of entering the healthcare industry. The company utilized their expertise in the fermentation of enzymes to become the first company to produce healthcare needs based on it (Kalegaonkar, Locke, & Lehrich, 2008).

Biocon India Group has continued to build on its accomplishments. Originally just Biocon, the company now consists of additional subsidiaries. Its strategy has been to “earn as you learn” (Kalegaonkar et al., 2008). They have continued to grow based on the processes and education they have obtained through increasing the effectiveness of their initial innovative focus. The early company maintained its focus on creating and providing enzymes in the production of various products and uses. Entering the pharmaceutical industry led to the company’s first subsidiary, Syngene. With their venture into chemical and biological research, Syngene provided drug manufacturers with target molecules, reagents and custom molecules that helped them produce new medications. Biocon India groups latest venture, Clinigene, is centered around the company to offer its clients the capability of conducting clinical trials on medication. Not only would this increase the value chain of Biocon by offering a needed service in the industry but would become a resource in the future once Syngene had reached the capability of creating its own molecules. This new venture is intended to support the business strategy of Biocon by helping it reach its full potential in the medical industry. Until that point, Clinigene could build its business on providing services to others (Hughes, Beatty, & Dinwoodie, 2014).