Illumina is the global leader in genome sequencing but faced challenges as the market became saturated from its previous success. To maintain growth, Illumina acquired several companies, developed new software and hardware, diversified into clinical verticals, and filed lawsuits against competitors. It plans to invest in R&D, focus on the cancer market, and develop new applications for its sequencing technology rather than solely reducing costs.
2. INTRODUCTION
• Illumina was founded in 1998 by David Walt, Larry Bock,
John Stuelpnagel, Anthony Czarnik & Mark Chee.
• Company was formed with an intention of developing
"Genome Sequencing" machines.
• In 1999 company hired Jay Flatley as the CEO of Illumina.
• In 2007 Illumina acquired Solexa Inc & Avantome in 2008.
3. Critical Facts
■ Illumina acquired Genologics Life science software
Inc., Myraqa,NextBio,Advanced Liquid
Logics,Verinata health, Bluegnome, Epicentre
Technologies Corporation.
■ Developed new and better software like HiSeq X Ten.
■ Global market leader under Flatley’s leadership.
■ Adopted strategy of acquiring technologically
advanced companies.
4. Problem
■ Stock price fell by 25% in mid 2015.
■ It complete saturated the market due to so many sales in previous
year.
■ It has Cannibalized themselves.
■ It was further analysis that It has adopted fast product cycle
“Illumina is a victim of its own success”.
■ It was hard time for customer to compete with those who have
HiseqX.
5. Plan of Action
■ Filed law suits against the competiors
■ Invested into RAnd D
■ Diversified itself to clinical vertical
■ Acquired various companies like blue gnome and
verinata Herix and grail
6. Conclusion
■ I think that the company should not move from its core competency of selling from B2B
to B2C as consumers market is difficult and it’s the buyers market.
■ The company should try and develop new uses for the product and stop trying to reduce
the cost of the product.
■ The company should also focus on the cancer market which a huge opportunity to
expand.