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What Actions Would You Recommend Regarding the Ranbaxy Partnership? Case Study Example

Pages: 1

Words: 276

Case Study

Lily pursued the right steps to enter the joint venture because the pharmaceutical industry in the United States was becoming under attack and the company wanted to protect its ability to operate. Therefore, the joint venture was necessary to protect the country against price decreases in pharmaceuticals. Entering this agreement allowed business to become diversified, which seemed to be good for business.

At the beginning of the project, it was challenging for the business partners to determine how they would establish themselves in terms of making their services known. Next, it was necessary for them to continue spreading throughout India in order to earn business. This was done more easily after they were able to gain the trust of physicians in the area. When the regulations that governed the sales of pharmaceuticals in India rapidly changed, it then became necessary for the organization to determine how it would continue to be profitable in light of these changes.

The overall performance of the joint venture was excellent in the beginning, but this diminished over time. This is likely because the initial plan put forth by the companies allowed it to be competitive, but this excellence and originality could not be maintained efficiently as years passed. The partners learned that it is necessary to keep business plans flexible in order to account for changes.

In order for this partnership to stay afloat, it may be necessary to have additional companies join in the partnership in order to ensure success. This will allow expertise from many different fronts to be utilized by the organization, and engaging in partnerships with companies in other countries will help enhance the diversification strategy of the partnership.

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