Another vital corporate strategy is the development and sustenance of strategic alliances. Barney defines a strategic alliance as a cooperation between two or more companies or outfits working in cohort toward the conceptualization and commercialization of products/services.
Companies operating individually in the market can certainly do well, however, there comes a point when the innovation meets a road block and output plateaus. The sales and revenue begin to stabilize such that growth is not experienced. During these lull periods, key strategic alliances can really push a company to the forefront of the market. Let's take a look at how Medtronic continues market domination with well-timed strategic alliances.
In 2014, Medtronic sought to bring a greater presence in the fight against Diabetes. Sanofi is a French multinational biopharmaceutical company. The company is working on both medical and holistic approaches to patients living with diabetes. Medtronic saw an untapped market space in healthcare, and pen was put to paper. Medtronic and Sanofi have created a "global strategic alliance" to manifest a multifaceted approach to diabetes.
In this day and age, data analytics practically drives many business practices and decision-making. Medtronic saw an opportunity here to use data and improve patient healthcare outcomes. Medtronic and Mercy Hospital entered into a strategic alliance where both parties are involved with the sharing and facilitation of patient data allowing for tangible improvements to Medtronic's medical devices currently produced and used in the field (and for future product lines).
In both cases, the companies work in concert not to benefit one's interests over the other, but to combine manpower with growing technology and continue finding and creating solutions for the millions of patients suffering everyday with illnesses.
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