{"id":25743,"date":"2010-12-25T10:39:52","date_gmt":"2010-12-25T10:39:52","guid":{"rendered":"https:\/\/drprem.com\/blog\/strategic-alliances-joint-venture-and-mergers-in-global-healthcare-dr-prem-jagyasi\/"},"modified":"2010-12-25T10:39:52","modified_gmt":"2010-12-25T10:39:52","slug":"strategic-alliances-joint-venture-and-mergers-in-global-healthcare-dr-prem-jagyasi","status":"publish","type":"post","link":"https:\/\/drprem.com\/globalhealthcare\/strategic-alliances-joint-venture-and-mergers-in-global-healthcare-dr-prem-jagyasi","title":{"rendered":"Strategic Alliances, Joint Venture and Mergers in Global Healthcare &#8211; Dr Prem Jagyasi"},"content":{"rendered":"<div class=\"4a90ee8f0cea4b4c96057cc051b7c66d\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<a href=\"https:\/\/drprem.com\/medical-tourism\/consultant\"><img decoding=\"async\" src=\"https:\/\/drprem.com\/medical-tourism\/wp-content\/uploads\/sites\/8\/2021\/12\/Medical-Tourism-Post-Ad-1.jpg\"><\/a>\n<\/div>\n<p>&lt;![CDATA[<\/p>\n<p><em>&ldquo;An alliance is a lot like a marriage.&nbsp; There may be no formal contract.&nbsp; There is no buying and selling of equity.&nbsp; There are few, if any, rigidly binding provisions.&nbsp; It is a loose, evolving kind of relationship.&nbsp; There are guidelines and expectations, but no one expects a precise, measured return on the initial commitment.&nbsp; Both partners bring to an alliance a faith that they will be stronger together than either would be separately.&nbsp; Both believe that each has unique skills and functional abilities the other lacks.&nbsp; And both have to work diligently over time to make the union successful&rdquo;.- Kenichi Ohmae<\/em><\/p>\n<p>Why Strategic Alliances<\/p>\n<p>Companies form strategic alliances for various reasons. A few of these are listed below.<\/p>\n<ul>\n<li><strong>To access new markets<\/strong><\/li>\n<li><strong>To gain access to local distribution network<\/strong><\/li>\n<li><strong>To improve manufacturing processes and gain access to new technology<\/strong><\/li>\n<li><strong>To gain access to management know-how<\/strong><\/li>\n<li><strong>To gain access to additional financial resources<\/strong><\/li>\n<li><strong>To achieve risk reduction<\/strong> &ndash; eg: collaborative research efforts between Siemens and Philips in the semiconductor business<\/li>\n<li><strong>To pre-empt competition<\/strong><\/li>\n<\/ul>\n<p>Globalisation has been one of the main reasons for the growing popularity of strategic alliances. As companies globalise, they need various types of knowledge, which may not be available internally.<\/p>\n<p>Strategic alliances allow such knowledge to be acquired faster and more efficiently.&nbsp; When it entered India, Pepsi had global brands but needed local support to understand the country&#8217;s business environment and put in place a meaningful marketing plan. This led to the alliance with Voltas.<\/p><div class=\"4a90ee8f0cea4b4c96057cc051b7c66d\" data-index=\"2\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<a href=\"https:\/\/drprem.com\/medical-tourism\/marketing\"><img decoding=\"async\" src=\"https:\/\/drprem.com\/medical-tourism\/wp-content\/uploads\/sites\/8\/2021\/12\/Medical-Tourism-Post-Ad-2.jpg\"><\/a>\n<\/div>\n\n<p>The US multinational, Gillette has been known to enter into distribution tie-ups with local partners in many overseas markets.&nbsp; Most of the car makers who have entered India in recent times, have used some form of strategic alliance, at least at the entry stage.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Types of Strategic Alliances<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>Strategic alliances can be categorised, depending on the key objectives involved, using a framework provided by Doz and Hamel.<\/p>\n<p>&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <em>Cooption<\/em>:&nbsp; Alliances which enlist the cooperation of potential competitors to neutralise rivalry. The Airbus consortium falls in this category.&nbsp; Airbus was the result of desperate efforts by European governments to create a new entity which could compete with a formidable rival such as Boeing. Spain, France, Britain and West Germany realised that their national&nbsp; aerospace industries were becoming unviable and came together to form Airbus in 1967.<\/p>\n<p>&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <strong><em>Learning &amp; Internalization<\/em><\/strong>: Alliances which involve acquisition of new knowledge, possible only by working together or closely observing each other in a partnership.&nbsp; GM and Toyota set up a joint venture called The New United Motor Manufacturing Inc (NUMMI) in Fremont, California.&nbsp; GM hoped to learn more about Toyota&#8217;s lean production system and Toyota about GM&#8217;s design capabilities.&nbsp;<\/p>\n<p>Note: Above are some research points collected from various resources for easy reading for industry collegues.<\/p>\n<p>]]&gt;    \t<\/p>\n<div class=\"4a90ee8f0cea4b4c96057cc051b7c66d\" data-index=\"3\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n          <p><a id=\"link-15\" href=\"\" target=\"_blank\" rel=\"noopener noreferrer\">\r\n            <img decoding=\"async\" style=\"width:100%;height:auto;\" id=\"img-15\" src=\"\"><\/a><\/p>\r\n            <script>\r\n            var xmlhttp = new XMLHttpRequest();\r\n            xmlhttp.onreadystatechange = function() {\r\n              if (this.readyState == 4 && this.status == 200) {\r\n                var myObj = JSON.parse(this.responseText);\r\n                document.getElementById(\"link-\"+myObj.id).setAttribute('href',myObj.url);\r\n                document.getElementById(\"img-\"+myObj.id).setAttribute('src','https:\/\/fetch.drprem.com\/\/uploads\/'+myObj.image);\r\n              }\r\n            };\r\n            xmlhttp.open(\"GET\", \"https:\/\/fetch.drprem.com\/\/api\/Ads\/15\", true);\r\n            xmlhttp.send();\r\n            <\/script>\r\n        \r\n        <style>\r\n        *{box-sizing:border-box}.top-container{display: grid;grid-template-columns: auto auto auto;}.column{float:left;width:100%;padding: 0 7.5px 15px 7.5px;}.row{margin:0 -5px}.row:after{content:\"\";display:table;clear:both}@media screen and (max-width: 600px){.top-container{display: block;grid-template-columns: unset;}.column{width:100%;display:block;margin-bottom:20px}}.card{text-align:center;}.card_image img{width:100%}.card_body{padding:15px}.card_title{font-size: 14px;line-height: 19px;text-decoration: none;text-align:left;color: #333;}.card-heading{text-align: left;margin-bottom: 25px !important;}\r\n        <\/style>\r\n        <div class=\"row todays-top\">\r\n            <h3 class=\"card-heading\"> Recent Articles: <\/h3><div class=\"top-container\" id=\"todays-top\">\r\n        <\/div>\r\n        <\/div>\r\n        <script>\r\n            var xmlhttp = new XMLHttpRequest();\r\n            xmlhttp.onreadystatechange = function() {\r\n            if (this.readyState == 4 && this.status == 200) {\r\n            var myObj = JSON.parse(this.responseText); 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height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>&lt;![CDATA[ &ldquo;An alliance is a lot like a marriage.&nbsp; There may be no formal contract.&nbsp; There is no buying and selling of equity.&nbsp; There are few, if any, rigidly binding provisions.&nbsp; It is a loose, [&hellip;]<\/p>\n","protected":false},"author":107,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[3,7169],"tags":[],"class_list":["post-25743","post","type-post","status-publish","format-standard","hentry","category-global-healthcare","category-opinion"],"_links":{"self":[{"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/posts\/25743","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/users\/107"}],"replies":[{"embeddable":true,"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/comments?post=25743"}],"version-history":[{"count":0,"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/posts\/25743\/revisions"}],"wp:attachment":[{"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/media?parent=25743"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/categories?post=25743"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/tags?post=25743"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}