Cooperative strategy of Baptcare Company with partnership
Cooperation strategies impacts on company’s operation, business and global strategies to get a competitive advantage in the market (Lamb R. 1984). Baptcare Company’s strategy is to fulfil its goals and objectives with the aim of providing health care and support to patients in a partnership to Wristband. As a way of entering the global market, Baptcare manages resource availability and access to critical areas within the organization. Apart from providing best care services to the society, the strategy ensures the services combine with values, beliefs, and traditions with the Partnership as a new paradigm. It will therefore be able to train employees to deliver high-quality care services.
Selection of Partnership Strategy
The most relevant way of forming a partnership is through mergers and acquisition. This will help the companies achieve greater economy of scale, minimize the cost of vertical integration and increase the company’s share in the capital market thus increasing the value of the share in the new company. Having different market in the same industry will make the merged entity form a large part of the market due to new geographical areas leading to a lucrative situation (Hitt, Ireland & Hoskisson 2006). The tax implications will be advantageous and detrimental if the liability is reduced perchance another company is less profitable as it limits process in many countries.
CarePredict sensor helps identify minor changes in day to day activities that can result to health problems similar to Baptcare’s main objective hence the best to merge with. Care-predict have promised potential growth of devices by 600% between 2016 and 2019 which gives a great sign of investment. Merging will ensure the future plans of both companies are well incorporated as people are also getting more conscious of their health and are empowered and interested in keeping track of their health. The already acquired customers are likely to remain and new ones be acquired therefore chances are, the merge will benefit both the patients and the company.
Main Alliance Type - Scale Alliance
Scale alliance is the best strategy for Wristband to achieve their common goals and predetermined objectives in an efficient manner (Augustine M & Cooper D., 2009). Organizations with insufficient scale to compete can join forces to bring a combination of their resources and talent to bring strategic advantage (Child, J & Faulkner, D., 1998). Hiring more staff will help gain greater expertise and leverage in technology by adopting new ideas and technologies which have been developed by the new organization.
Wristband and care-predict have a common goal of monitoring daily activities of their patients and acting on them to prevent side effect. The care-predict experts are already coming up with new ideas like monitoring the patient’s blood sugar level and linking the devices to the care providers which complies well with the Baptcare approach of treating every patients individually. As a result, the merging has a potential of ensuring success of both companies considering their services.
Benefits of the collaboration
Baptcare collaborate with Wristband can help them achieve the benefits of economies of scale and scope if they decide to work together (Blank, C., 2016). Also, it will help diversify their products and services and make sales in a larger market by reducing the external competition. This is common in a situation when a company plans to merge or acquire another company operating in the same industry, resulting as a stronger company.
The management capabilities to manage a cooperative strategy in Baptcare include effective ways to internalize experiences and to gain knowledge from them. They establish controls and standards. Baptcare is successful in managing its cooperative strategy as they have been engaged in developing cost minimization and opportunity maximization techniques in their activities. They form a partnership with adequate formalities and contracts. Its main goal is to stifle partner efforts and to have maximum benefits through their participation. Baptcare can create a high level of trust among their partners so as to act in partnership in the best possible manner to achieve the desired interest.
Wristband should agree to form a partnership with Baptcare, to make wider access to people who are technical expertise and experienced. In such business relation, it can enjoy various benefits of partnership such as successful in creating more appropriate and effective products and services. Reducing the costs by sharing and delivery systems thus, avoiding duplication. The partnership ensures long-term stability and sustainable development impact.
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