Strategic Alliances Case Study

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Tisdale-Walton, Nirvonna In a narrative format, discuss the key facts and critical issues presented in the case. In the past two decades, strategic alliances have become an important tool for pharmaceutical and biotechnology firms as they face increasing competition, increased public scrutiny of their business practices and profits, and difficulties discovering new products. A large number of new alliance (217) occurred between pharmaceutical and biotechnology firms, probably reflecting pharmaceutical firms' needs for access to new products that the smaller, but more research-intensive, biotechnology firms have been generating. Finally, it appears that firms are using alliances to enhance their capabilities in key markets. Most new alliances…show more content…
Reference: Edward J. Zajac, Thomas A. D’ Aunno, and Lawton Robert Burns, “ Managing Strategic Alliances” Copyrigth 2011 Cengage Learning. All rights reserved. What do you think are the possible major tensions that exist when a pharmaceutical firm forms an alliance with a biotechnology firm? How would you try to address those tensions? Strategic alliances are less costly and less risky ways to acquire capabilities than outright acquisitions. But which alliances succeed? And how can companies be assured they are on the right path? With 20,000 alliances formed since 1988 and the number growing 25 percent a year, New York Times technology writer Lawrence Fisher looks for answers to the drug industry where the growth of alliances has been dramatic. From 85 deals to 376 in just the two years from 1993 to 1995, biotechnology companies and pharmaceuticals are setting the pace for strategic alliances…show more content…
Fisher, “ How Strategic Alliances Work in Biotech” published: January 1, 1996/ winter 1996/issue 2. Identify different challenges that exist for maintaining or strengthening an ongoing alliance versus beginning a new relationship. Should this alliance occur? Why or why

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