{"id":26087,"date":"2012-03-02T12:42:11","date_gmt":"2012-03-02T12:42:11","guid":{"rendered":"https:\/\/drprem.com\/blog\/strategic-alliances-joint-venture-and-mergers-in-global-healthcare-dr-prem\/"},"modified":"2020-09-10T15:24:50","modified_gmt":"2020-09-10T09:54:50","slug":"strategic-alliances-joint-venture-and-mergers-in-global-healthcare-dr-prem","status":"publish","type":"post","link":"https:\/\/drprem.com\/globalhealthcare\/strategic-alliances-joint-venture-and-mergers-in-global-healthcare-dr-prem","title":{"rendered":"Strategic Alliances, Joint Venture and Mergers in Global Healthcare &#8211; Dr Prem"},"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<h2 class=\"title\"><em><br \/>\n\u201cAn alliance is a lot like a marriage.\u00a0 There may be no formal contract.\u00a0 There is no buying and selling of equity.\u00a0 There are few, if any, rigidly binding provisions.\u00a0 It is a loose, evolving kind of relationship.\u00a0 There are guidelines and expectations, but no one expects a precise, measured return on the initial commitment.\u00a0 Both partners bring to an alliance a faith that they will be stronger together than either would be separately.\u00a0 Both believe that each has unique skills and functional abilities the other lacks.\u00a0 And both have to work diligently over time to make the union successful\u201d.- Kenichi Ohmae<\/em><\/h2>\n<div class=\"body\">\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>\u00a0\u2013 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><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>Strategic alliances allow such knowledge to be acquired faster and more efficiently.\u00a0 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>\n<p>The US multinational, Gillette has been known to enter into distribution tie-ups with local partners in many overseas markets.\u00a0 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><strong>Types of Strategic Alliances<\/strong><\/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>(i)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<em>Cooption<\/em>:\u00a0 Alliances which enlist the cooperation of potential competitors to neutralise rivalry. The Airbus consortium falls in this category.\u00a0 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\u00a0 aerospace industries were becoming unviable and came together to form Airbus in 1967.<\/p>\n<p>(i)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<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.\u00a0 GM and Toyota set up a joint venture called The New United Motor Manufacturing Inc (NUMMI) in Fremont, California.\u00a0 GM hoped to learn more about Toyota&#8217;s lean production system and Toyota about GM&#8217;s design capabilities.<\/p>\n<p>Note: Above are some research points collected from various resources for easy reading for industry collegues.<\/p>\n<\/div>\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>\u201cAn alliance is a lot like a marriage.\u00a0 There may be no formal contract.\u00a0 There is no buying and selling of equity.\u00a0 There are few, if any, rigidly binding provisions.\u00a0 It is a loose, evolving [&hellip;]<\/p>\n","protected":false},"author":107,"featured_media":27989,"comment_status":"closed","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-26087","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-global-healthcare","category-opinion"],"_links":{"self":[{"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/posts\/26087","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=26087"}],"version-history":[{"count":0,"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/posts\/26087\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/media\/27989"}],"wp:attachment":[{"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/media?parent=26087"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/categories?post=26087"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/drprem.com\/globalhealthcare\/wp-json\/wp\/v2\/tags?post=26087"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}