Strategic alliance - Essay Example

The article has raised critical issue of forging strategic alliances in the corporate world. It has discussed the pros and con of the alliance and the importance of testing its efficacy in the long run. It also informs that the managerial leadership becomes a very important ingredient of decision making process that can define the success or failure by accurate assessment of the need for alliances. The benefits and disadvantages of the strategic alliances are given in details that show good understanding of the business strategies.

The different stages of alliances help to assess the success of strategic alliance. Therefore, they are very pertinent issues for organizations and for the viability of the same. Moreover, author rightly claims that if managers fail to accurately assess risk, they can lose a big opportunity which could have been exploited for greater gains. In the current environment of highly competitive business and escalating cost of healthcare, strategic alliances can provide the firms with competitive advantage and significantly promote business interests at lower cost.

Though, failure rate of alliances is relatively high, but correct risk analysis and comprehensive study of pros and con of the strategic alliance can hugely benefit organizations to expand and compete against their rivals. Richardson (2011) says that strategic alliances in healthcare industry have become critical inputs that not only help to meet the challenges of recessive environment but also facilitate easier access to healthcare delivery by larger demographic segment, especially the vulnerable segment of the society.

Most importantly, I believe that in the current times, strategic alliances must be encouraged as they tend to divide the risks and double the profit.(words: 271)ReferenceRichardson, V. (2011) Crossing Strategic Alliance Borders to 2025: Healthcare in an Era of Globalization. Retrieved from http://www.theilm.com/wp-content/uploads/2011/11/Richardson-CrossingStrategicAllianceBordersto2025.pdf