Healthcare is becoming more globalized. As a result, healthcare organizations are developing strategic international alliances to gain collaborative advantages. According to Kimberg (2013, para. 1) a strategic alliance is a formal relationship between two organizations that are pursuing a shared vision while remaining independent organizations. Although there are many benefits to these alliances, there are unfortunately many trade-offs and risks to consider. In fact, Hill & Jones (2008, p. 295) reported the failure rate for international alliances is over 50%. In turn, before making an alliance commitment, CMOs must determine if it is more likely to add organizational value or have detrimental repercussions.
Trade-offs …show more content…
1). Focusing on differentiation will improve market positioning for both organizations. For example, Eastern and Western health providers typically have a different view of human life, health, and illness. In addition, many conditions that Western medicine has proven unsuccessful in treating is treated quite effectively in Vietnam (Global Health Travel, n.d., para. 2). The same is true vice versa. If Stanford and Saigon can incorporate Eastern and Western therapies, they could offer an array of unique healthcare services. The can differentiate themselves by offering a blend of conventional and alternative therapies (Deloitte, 2014, p. 4). Further, they can capitalize on their ability to provide culturally centered care (Udupa, 2015, p. …show more content…
First, the organization can consider a multiproduct branding approach. This would entail the organizations assign one name to all healthcare facilities the organization operates (Berkowitz, 2011, p. 277). This approach can enhance consumer loyalty and can promote acceptance of new services if the name is associated with quality healthcare. However, this strategy has an array of risks. For example, new services will be heavily scrutinized. Therefore, new services must meet the expected value or quality of older services. Second, an organization can consider a multibrand approach, which assigns a different name to each facility associated with the organization (Berkowitz, 2011, p. 277). This strategy can help preserve the integrity of the brand name of the parent company, but promotional costs are higher and it will require satellite facilities establish brand