Business Strategy and Policy - Vericel and Its Industry - Example

The paper “Business Strategy and Policy - Vericel and Its Industry” is an earnest example of a business report. Vericel is an established American biotechnology firm that also conducts research and production of pharmaceutical products. The firm was established in 1989 in Ann Bor, Cambridge (Vericel Corp, 2016). The firm further expanded its operations into Denmark and other parts of the US. However, in 2014, the firm embarked on a reform strategy for its business activities. The firm acquired the regenerative drug business from Genzyme Inc. of the U.S (Vericel Corporation, 2016a).

The expansion was conducted under the “Operation stars and stripes” strategy. Consequently, it gained a high number of qualified employees and expanded its business portfolio. Previously, the firm had only engaged in the research and development of treatment strategies for severe illnesses based on the cell-based therapy technique. After the expansion program, the firm could conduct research and develop drugs for the US pharmaceutical market. In this paper, an industry analysis was conducted on the viability of the “Operation stars and stripes” adopted by the firm in the context of the American biotechnology pharmaceutical market.

The strategy aims at expanding the firm’s operations in the US and reduces its overseas operations. In implementing the Operation stars and stripes strategy, the firm acquired the regenerative medicine business from Genzyme, a competitor firm in the US. Porter’s five forces analysis showed that the firm has strengths in employee numbers and government funding. Further, the company enjoys high product loyalty and an established market in the US. However, the firm’s expansion strategy is threatened by a consistent reduction in government funding for research.

It is also threatened by the consistent rise in the cost of skilled labor. Similarly, the firm’s international market is also threatened by competition from other biopharmaceuticals that produce cheaper generics and offer similar services. The operation stars and stripes strategy, therefore, aims at reducing expanding the firm’s business operations, increasing the employee number, and increasing the client base for Vericel.