International Healthcare Co-Branding The healthcare industry has witnessed an expansion and growing interests in global markets. As healthcare industries vie for sustainability in a cost exorbitant system, expansion abroad has become a plausible option. Co-branding is just one example of a method employed by healthcare leaders to implement diversification of healthcare services. Gaining an understanding about both the risks and the benefits associated with international healthcare branding grants health providers an opportunity to dissect the potential success of a co-brand alliance. In this paper, the potential of co-branding between Stanford Medical Center and a major national hospital in Saigon will be explored. Gombeski et al. (2014)
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In functional co-branding the companies align to produce an advantageous end product. Symbolic co-branding occurs through virtue of applying another brand’s character to the associated companies. According to the authors, branding also entails three qualities. First, the co-brand must communicate clearly and consistently a promise to the consumer base. Second, co-branding distinguishes the associated companies from other contenders. And third, the loyalty and respect of customers, stakeholders, and other networks is developed and nurtured (Grebosz & Otto, 2013). Co-branding has created opportunities for varying brands to expand and grow. However, inherent risks and benefits accompany a co-branding strategy. Uggla and Asberg (2010) recognize four risks and four benefits associated with co-branding. The benefits include financial, functional, emotional and self-expression. The risks comprise absence of control, distraction from target groups, weakened reputation, and decreased position of future power (Uggla & Asberg, …show more content…
One of the greatest risk is dependence on the healthcare practitioners in Vietnam to deliver quality care in compliance with Stanford Medical Center’s expectations. Another potential risk originates in the upfront investment required by Stanford Medical Center such as a massive investment in education, staff, and funding. Furthermore, Stanford’s organizational culture and goals should be vetted against the Vietnamese medical system to evaluate compatibility. After contemplating the benefits and risks associated with investing in healthcare co-branding, I believe Stanford Medical Center should pursue the endeavor. Global healthcare trends point towards ongoing growth for medical tourism and export/import of healthcare services. Forming an alliance with the national Vietnamese hospital in Saigon provides an opportunity for Stanford Medical Center to enter the global healthcare market through a venue with major growth opportunity. In addition to establishing compatibility, forming a strategic marketing plan will be of key
In functional co-branding the companies align to produce an advantageous end product. Symbolic co-branding occurs through virtue of applying another brand’s character to the associated companies. According to the authors, branding also entails three qualities. First, the co-brand must communicate clearly and consistently a promise to the consumer base. Second, co-branding distinguishes the associated companies from other contenders. And third, the loyalty and respect of customers, stakeholders, and other networks is developed and nurtured (Grebosz & Otto, 2013). Co-branding has created opportunities for varying brands to expand and grow. However, inherent risks and benefits accompany a co-branding strategy. Uggla and Asberg (2010) recognize four risks and four benefits associated with co-branding. The benefits include financial, functional, emotional and self-expression. The risks comprise absence of control, distraction from target groups, weakened reputation, and decreased position of future power (Uggla & Asberg, …show more content…
One of the greatest risk is dependence on the healthcare practitioners in Vietnam to deliver quality care in compliance with Stanford Medical Center’s expectations. Another potential risk originates in the upfront investment required by Stanford Medical Center such as a massive investment in education, staff, and funding. Furthermore, Stanford’s organizational culture and goals should be vetted against the Vietnamese medical system to evaluate compatibility. After contemplating the benefits and risks associated with investing in healthcare co-branding, I believe Stanford Medical Center should pursue the endeavor. Global healthcare trends point towards ongoing growth for medical tourism and export/import of healthcare services. Forming an alliance with the national Vietnamese hospital in Saigon provides an opportunity for Stanford Medical Center to enter the global healthcare market through a venue with major growth opportunity. In addition to establishing compatibility, forming a strategic marketing plan will be of key