Strategic Alliances in Biotechnology Sector
Introduction
The biotechnology is considered as one of the major achievement in the scientific studies. The combination of the technology in the aim to improve the health, wellness, and life of every individual is a great success. Many of the biotechnological companies provide assistance that is available to the people and it gives another interesting line between the business and the scientific studies. The merging of the biotechnological companies gave birth to the strategic alliances.
Background of the Study and Problem Statement
In the industry where the innovation is at hand but the profit is impossible is popular in every growing market. In addition, when there is very high competition it is also an implication to bring the research and development in very high levels (Bas, 2006). The concept of the strategic alliances is powered by the huge profits and thought to find solution on common problems such as the countless and evolving diseases, need for appropriate knowledge, and thousands of the needed laboratories, the need for the additional companies is another call for the strategy (Audretsch and Feldman, 2003). As the main topic of the study, the focus will be on the effects of the strategic alliances in biotechnology sector.
Research Objectives
The first objective of the study is to identify the impact of the strategic alliances in the biotechnology sector. The second, that has a relation on the first objectives, is to provide adequate knowledge beyond the collaboration of the alliance.
Research Questions
In the examination of the strategic alliances within the biotechnology sector, the questions are identified that can give the study a better clarification and to serve as an engine in achieving the research’s objectives.
1. What are the major technical developments that can accommodate in the alliance?
2. What are the commitments of the biotechnological organizations to facilitate the development?
3. What are the continuing efforts of the alliance that are beneficial for the biotechnology firms?
Literature Review
The alliance of the biotechnology firms turns to the strategy of the strong firms that are well-founded with knowledge and expertise. This strategy made an attention as the joint venture of the organization where they can utilize the resource and have the concept of agreement and control. The success alliance has requirements which are incorporated in three essential elements. Every biotechnology firms should possess the capabilities, control, and context. In the formation of the alliance, the biotechnological firms can create their own structure of control that is importance to shape the capabilities of the organization and in due process, can provide additional investment. It is also called a strategy because the small firms that belong in the alliance have the ability to compensate their effort and increase their market scale (Audretsch and Feldman, 2003). The strategic alliance strengthened the science and technology through the consideration of the resource and effort in placing the knowledge and skills. The strategic alliances promoted the different issues surrounding the biotechnology and the future project towards the achievement of their aim (The Victorian Government, 2004). The cooperation of the agreement s of the biotechnology allows the firms to perform even if there are uncertainties and pressure from the globalization, rapid changes in technology, and research and development tactic. The three factors are usually the very same reason why the strategic alliance existed in the biotechnology sector (Bas, 2006).
Methodology
In the methodology, the research used the secondary information. Through this method, all of the resources and the past studies are examined, compared and weighed their analysis. This enables the study to conduct its own analysis regarding unto what was the idea of the information. in addition, the biotechnology companies are part of the examination and their motives in creating the alliance are needed to be emphasized. Therefore, the adaptation of this method is considered as an advantage.
Analysis
It was identified that throughout the years, the biotechnology sector has an interesting growth in terms of the research alliances. The biotechnology industry is yearning to acquire the knowledge in the evolving world through yielding the scientific researches. Through the idea of the alliance, there is a great influence in outcome of the researches and development while at the same time; the collaborated forces of the biotechnological firms are considered as a strategic relationship.
Conclusion
Biotechnology firms have positive views in the issue of strategic alliance in terms of their growth. But the small players did not close the other possibilities of business acquisitions because of the diversity in the alliance. There is a great tendency for acquisition if the small players did not handle the issue of globalization or international competition.
References:
Audretsch, D., & Feldman, M., 2003. Small-Firm Strategic Research Partnerships: The Case of Biotechnology. Technology Analysis & Strategic Management, Vol. 15, No. 2. [Online] Available at: http://www.rotman.utoronto.ca/feldman/papers/Small-Firm%20Strategic%20Research%20Partnerships.pdf. [Accessed 12 Feb 2010]
Bas, T., 2006. Cooperation Agreements in Biotechnology Companies: An Advantage for the Acquisition of New Capabilities and Growth? Journal of Technology Management Innovation, Vol. 1, No. 2. [Online] Available at: http://www.jotmi.org/index.php/GT/article/view/art2/6. [Accessed 12 Feb 2010]
The Victorian Government, 2004. Biotechnology: Strategic Development Plan for Victoria. [Online] Available at: http://www.business.vic.gov.au/busvicwr/_assets/main/lib60041/01_2004_biotech_strategic_plan.pdf. [Accessed 12 Feb 2010]
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