Instructions Read \'An Orthopedic Group Decides to Construct a Specialty Hospita
ID: 398698 • Letter: I
Question
Instructions Read 'An Orthopedic Group Decides to Construct a Specialty Hospital" in the cases section at the end of the textbook (Page 349-352). How could the other hospitals in the area have used the concepts of alliances to prevent the construction of an independent orthopedic hospital? This report should be no more than 2 pages long Please include the following information when completing this assignment: 1. Description of an alliance 2. Purpose of an alliance 3. Failure of alliance 4. Success of alliance 5. Of the types of alliances, which is best suited for the area hospitals to establish and why?Explanation / Answer
The other hospitals in the area could have prevented construction of new independent hospital by forming strategic alliances. This helps in fighting external threat and defend market.
Description of alliance:
OrthoIndy decided to stop services which were not profitable and also stop treating medicaid patients. Hence it can have tie up with other hospitals in the area to offer services which are not offered by OrthoIndy. This helps in preventing customers from leaving the hospital and their by create loyal customer base.
Purpose of alliance:
The alliance should offer all the services to the customer by utilizing each other’s asset and their by prevent customer attrition to new entrant
Failure of alliance
Alliance can fail when partners in the alliance do not adhere to objectives of alliance and perceive their own objectives.
Success of alliance
Alliance can be successful when all the stated objectives of alliance are met. That is alliance should offer full service to the customers by utilizing asset of all the alliance partners and their by prevent loss of market share to new entrant.
Type of alliance best suited:
Strategic alliance is the type of alliance best suited for the present case