Case study and comparative strategic analysis of Roche AG and Health's Angels (PDF)

Seminar paper from the year 2017 in the subject Business economics - Miscellaneous, grade: 1,0, BSP Business School Berlin (form. Potsdam), course: Strategic Managment & Controlling, language: English, abstract: The digital transformation of the health market is gathering pace.The health sector is also expected to grow enormously in the next few years. The global market volume is expected to more than double from almost $ 80 billion $ by 2015 to more than 200 billion $ by 2020.

Innovative business models ensure that new suppliers are able to get shares in the market. Thus, they are becoming a direct competition for traditional companies across the entire value chain. As a result, the question is clear for all parties involved:

"How can companies in the pharmaceutical sector benefit from digitalization and thus grow? "
A possible answer to this can be the business model "Healths Angels", which was developed as part of the "Agorize e-pocrate" student challenge. Therefore, the developed business model is to be compared with that of the pharmaceutical company F. Hoffmann-La Roche AG in order to determine a useful strategic alignment.

In the first place, an analysis of the current market situation is offered, to provide an overview of the status quo. Both, Roche AG and the business model of "Healths Angels", are first presented with their core competencies, in order to identify the stakeholders afterwards. Subsequently, the political, economic, sociological and technological factors will be shown for an external analysis. This step also leads to the next point, the Porter's Five Forces model, which helps to gain a holistic view of an industry by considering barriers to entry, supplier power, buyer power, threat of substitution and competition.

An additional internal analysis provides a good help to identify strengths and weaknesses. However, before a final recommendation about the strategic alignment can be made, the value chain of both companies must be analysed and shown. A portfolio analysis provides the foundation for a possible strategy development and investment decisions for Roche AG. The final SWOT analysis identifies the strengths, weaknesses, opportunities and threats for both companies. After this, a final recommendation will be drawn for both companies, in order to draw a conclusion, how both can not only grow but also benefit from it in the course of digitization.