Study On The Integrated Development Strategy Of Gene Sequencing Business In HD Group

In 2016,China is home to more than 600 NGS related companies,with business ranging from integrated sequencing services,basic scientific research to clinical application.The gene sequencing industry is embracing a hard-won strategic development opportunity,meanwhile,it also witnesses a drastic M&A period between the upper stream and the downstream of the industry.The case of HD Group to realize Supernormal Development through Integration Strategy is worth studying.From 2014 to 2017,the author embarks from the angle of director of strategic development center,collects and organizes related industry research,investigations,interviews and reports as well as communicates with some policy makers,eventually obtaining informative materials from the HD Group.Integrated Development Strategy serves as an important tool for enterprises to carry out its expansion strategy management,thus,if it is implemented,enterprises can gain cost advantage,scale economy,technology development,market control and other benefits.However,there are also risks in this regard,including expensive cost and excessive expansion.This paper delves into the macro environment of gene sequencing industry on PEST model,justifies HD Group's selection of integrated development strategy in the context of rapid changes in the industry through literature review,qualitative interviews and integration strategy theory;furthermore,it also evaluates its implementation effect,such as,connecting the upstream and downstream of the industry,accelerating products R&D,reducing supply cost of upstream instruments,strengthening enterprise scale and brand effect,and improving internal resource application efficiency;while it also bring about various risks including dispersed resource input,declined organizational ability,huge management burden,“ large and all-inclusive”,weakened resilience to the market,insufficient R&D in new products etc..In the end,this paper uses the GE Matrix to assess the business strategies and put forward such suggestions as promoting business competitiveness,deepening the market and improving management.It is hoped that this paper can shed some light on the integration strategy for biotechnology enterprises.