The Strengths and Potential Weaknesses of Each of Three Types of Strategic Alliances: [Essay Example], 788 words GradesFixer
exit-popup-close

Haven't found the right essay?

Get an expert to write your essay!

exit-popup-print

Professional writers and researchers

exit-popup-quotes

Sources and citation are provided

exit-popup-clock

3 hour delivery

exit-popup-persone
close
This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

The Strengths and Potential Weaknesses of Each of Three Types of Strategic Alliances

Download Print

Pssst… we can write an original essay just for you.

Any subject. Any type of essay.

We’ll even meet a 3-hour deadline.

Get your price

121 writers online

blank-ico
Download PDF

Strategic alliances are defined as, “A mutually beneficial, long term, formal relationship formed between two or more parties to pursue a set of common goals or to meet a critical business need while remaining independent organizations. Strategic alliance is called quasi-firm or hybrid arrangement”. There are three types of strategic alliances: (1) Pooled Service Alliance (2) Joint Venture Alliance and (3) Network Source Alliance.

Strengths of Pooled Service Alliance

1. Greater Purchasing Power: Pooled service alliances are formed by large number of members. So they have their more finances and can purchase higher amount of services or resources.

2. More services to offer: Alliances contract with their members organizations for providing more services. Thus their member organizations are benefitted.

3. Reduced labor and cost: pooled service alliances purchase greater resouces from supplier and purchase volume of their member organizations are used to induce lower costs from the suppliers.

Weaknesses of Pooled Service Alliance

1. Membership agreement: All pooled service alliances are not free; some have membership fees that are to be paid once a year. There are several agreement policies to which each member has to abide.

2. Minimum case orders: The supplier might bid only if he has to supply a certain minimum amount of resources, so when the organizations need only small amount of resources, the supplier might not bid.

Strengths of Joint Venture alliance

1. New opportunities: The agencies can have opportunities to get new expertise that is available from joint venture.

2. Possibility of expansion: Agencies can enter into new business or can gain access to distant geographic areas.

3. Ownership and authority: Since there are few members, they can have straightforward ownership and more authority.

Other strengths of joint venture alliances include risk sharing with partner, contact to more resources and new technology, entering into business that is different from the organizations’ core business.

Weaknesses of Joint Venture Alliances

Building a relationship with partner organization might be tough. If the partner organizations have different mission and vision, it would be difficult. There might not be a good balance of expertise, investments brought from partners in joint venture alliances. If objectives are not clear to everyone in the partner organizations, it might lead to failure.

Strengths of Network Source Alliance

1. Outsourcing of functions by core organizations benefits the contract organization. Contract organizations can get a capital, license and some required opportunities without much effort.

2. Core organization can get credits for the contract for example, if a pharmaceutical company contracts for clinical trials, the pharmaceutical company can get credits for research done for clinical trials and the agency that does clinical trials can get capital, time and resources to conduct trials.

Weaknesses of Network Source Alliances

There might be disagreement between core organization and contract organization. Contract organization won’t get authority. Contract organization would have to follow the rules of core organization. This might not go well with all contract organizations. Sometimes the functions (example: research) from contract organizations would take longer time and more resources than expected.

Example of Pooled Service Organization

Group purchasing organizations (GPO) are the most common examples of pooled service alliances. One such GPO is Vizient. As a combination of VHA Inc. (formerly known as Voluntary Hospitals of America), a netweork of non-profit hospitals, University HealthSystem Consortium and Novation, Vizient was formed in 2015. University HealthSystem Consortium is an alliance of nation’s outstanding academic medical centers and Novation is healthcare contracting company.

MedAssests’ Spend and Clinical Resources Management were acquired by Vizient in 2016. Vizient is driven by affiliates and it is the outstanding healthcare improvement company in the country. To deliver extraordinary cost effective care, affiliates are connected to solutions to enhance quality and improve business. Example of joint venture alliance:A definitive agreement has been signed to make a partnership that would own and operate Carondelet Health Network based in Tucson, Arizona by Tenet Healthcare Corporation, Dignity Health and Ascension. In this new joint venture, Tenet Health will be the major owner and the operations of the three hospitals, related physician practices, outpatient and ambulatory services, and other affiliated businesses will be managed by Tenet. The facilities included in the new partnership are: St. Joseph’s Hospital (486 beds) in Tucson, St. Mary’s Hospital (400 beds) in Tucson, Holy Cross Hospital (25 beds) in Nogales, Carondelet Heart & Vascular Institute at St. Mary’s Hospital, Carondolet Neurological Institute at St. Joseph’s Hospital, Carondelet Medical Group, Carondelet Specialist Group as well as imaging centers and other ambulatory services.

Example of Network Source Alliance

Devoted to clinical research, Reading Hospital establishes collaboration with different national organizations and vast university hospitals. Partnerships are provided to increase research opportunities. Patients are benefitted from the treatments developed from these collaborations. John Hopkins Medicine is linked to varied network of community based healthcare delivery system by John Hopkins Clinical Research Network (JHCRN). JHCRN is a regional translational research organization.

Remember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

100% plagiarism free

Sources and citations are provided

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

The Strengths and Potential Weaknesses of Each of Three Types of Strategic Alliances. (2020, Jun 14). GradesFixer. Retrieved January 12, 2021, from https://gradesfixer.com/free-essay-examples/the-strengths-and-potential-weaknesses-of-each-of-three-types-of-strategic-alliances/
“The Strengths and Potential Weaknesses of Each of Three Types of Strategic Alliances.” GradesFixer, 14 Jun. 2020, gradesfixer.com/free-essay-examples/the-strengths-and-potential-weaknesses-of-each-of-three-types-of-strategic-alliances/
The Strengths and Potential Weaknesses of Each of Three Types of Strategic Alliances. [online]. Available at: <https://gradesfixer.com/free-essay-examples/the-strengths-and-potential-weaknesses-of-each-of-three-types-of-strategic-alliances/> [Accessed 12 Jan. 2021].
The Strengths and Potential Weaknesses of Each of Three Types of Strategic Alliances [Internet]. GradesFixer. 2020 Jun 14 [cited 2021 Jan 12]. Available from: https://gradesfixer.com/free-essay-examples/the-strengths-and-potential-weaknesses-of-each-of-three-types-of-strategic-alliances/
copy to clipboard
close

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

    By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.

    close

    Attention! this essay is not unique. You can get 100% plagiarism FREE essay in 30sec

    Recieve 100% plagiarism-Free paper just for 4.99$ on email
    get unique paper
    *Public papers are open and may contain not unique content
    download public sample
    close

    Sorry, we cannot unicalize this essay. You can order Unique paper and our professionals Rewrite it for you

    close

    Thanks!

    Your essay sample has been sent.

    Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

    thanks-icon Order now
    boy

    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Having trouble finding the perfect essay? We’ve got you covered. Hire a writer

    GradesFixer.com uses cookies. By continuing we’ll assume you board with our cookie policy.