Partnering and networks as a strategy to address de alio market entry challenges: the why, how and with whom to collaborate in the biotechnology industry
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School of Business |
Master's thesis
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Authors
Date
2017
Department
Major/Subject
Mcode
Degree programme
Management and International Business (MIB)
Language
en
Pages
108
Series
Abstract
It is important to study companies finding, creating, and entering new markets, especially when experiencing pressure in their mature home markets. The strategy context of commercializing a new innovative product into an emergent market segment, in an unfamiliar industry (de alio), with completely different business logics is extremely demanding, original, and interesting. The target market (biotechnology) is ranked one of the most high-risk and complex, involving symbiotic partnering, deep science, regulation and learning race competition dynamics. On top of this, the multinational case company faces extra challenges of a newcomer, without enough knowledge, access or networks, with internal coordination of two different business logics, and the accelerating competition of the emergent market. These factors contrast with the company home industry (material manufacturing) which is more calculated and mature, and where the company enjoys the incumbent position. Thus, a target industry partner is important and the partnering issues of de alio companies merit attention. At the same time, globalization is changing industries by intensifying the importance of partnering. This study provides a snapshot update on how the trend is developing in one of the leading industries of this trend. The study contributes by combining and complementing classic and recent theories of partnering and market entry in a partnering framework to provide new insights for de alio market entries, especially on the topics where the academic community solicits contribution. The main research problem focuses on how companies can manage the challenges of de alio market entry by forging partnerships. With whom, why and how to collaborate in the case context? The study uses the qualitative method of single intensive case study, with snowball sampling method, social network analysis and content analysis. The primary empirical data consists of twenty-five semi-structured interviews. The study was conducted in a research project between the case company and the Aalto University School of Business. Big pharmaceutical companies were identified as the most important partnering target (e.g. research collaboration/supplier). To grow the market share, obtain competitive advantage, create and capture value in the biotechnology industry, a heterogeneous portfolio of supporting partnerships is necessary. This includes universities, Key Opinion Leaders in target segments, distribution partners and Contract Research Organizations. The main motivations for partnering are to access (overcome barriers), learn (gain assets), respond to competition, speed up processes and mitigate risks. Adapting the “toolbox” of possible ways how to collaborate in the target industry is important. In biotechnology, a prerequisite for obtaining the partnering benefits is to relax some of the control and compensate it by building long-term win-win relations based on trust, synergy, common goals and aligning business models with the partner.Description
Thesis advisor
Granqvist, NinaKeywords
strategy, partnership, market entry, biotechnology, competitive advantage, innovations, pharmaceutical industry, manufacturing