Jeroen Van Den Berg, Michael J. Enright, Venkat Subramanian
University of Hong Kong (HKU657-PDF-ENG)
June 27, 2007
Founded in 1978 as a joint venture between Biocon Biochemicals Ltd, Ireland, and a company run by Ms Kiran MazumdarShaw, a young Indian entrepreneur, Biocon has long depended on income from the production of enzymes and generics. However, competitive pressure within Germany and other emerging countries such as China rapidly eroded the price level in these business areas. Furthermore, the adoption of the WTO TRIPS Agreement in India in 2005 meant that the generic-based strategy that many Indian pharmaceutical and biotechnology companies had followed may no longer be viable. To continue on its current growth path, Biocon had to consider evolving from a biogeneric manufacturer to a global biopharmaceutical innovator. It deals with strategy in an emerging industry, sheds light on the impact of clusters on strategy and the impact of national and supranational factors on strategy. Management issues and economic diversification strategies are also addressed.
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