Strategic Value-Chain Analysis of Indian Pharmaceutical Alliances

20 Pages Posted: 2 Oct 2007

See all articles by Gaurav Raizada

Gaurav Raizada

Indian Institute of Management, Ahmedabad

Atul Pall

Indian Institute of Management, Lucknow

Date Written: November 6, 2006

Abstract

A number of firms around the world have been using strategic alliances to become more competitive globally. The reasons attributed to such alliances vary from economies of scale, increased revenue, cross selling, synergy, tax write-offs, diversification and resource transfers among others. After the liberalization of Indian economy in 1991, Indian companies have used these strategic alliances to expand into other markets and prepare for increased competition at home. But after joining the World Trade Organization in 1995, India had to change its patent laws by 1 January 2005 to meet its commitments under the WTO's agreement on Trade Related Intellectual Property Rights (TRIPS). In the post-2005 scenario, the pharmaceutical industry has undergone a significant change due to the TRIPS agreement.

Though a number of reasons are attributed to these strategic alliances in literature, there is no particular pattern that can be observed in these alliances. This study aims at analyzing the Indian Pharmaceutical Industry and the strategic alliances in the recent past and what drives these alliances. A value chain framework has been proposed that analyses the critical capabilities needed along the value chain in the Pharmaceutical Industry, the existing capabilities of the firms and how these alliances are supposed to bridge the capability gap.

Keywords: Strategic Alliances, TRIPS, Indian Pharmaceutical Industry

JEL Classification: D21, D40, K00, L16, L52, N35

Suggested Citation

Raizada, Gaurav and Pall, Atul, Strategic Value-Chain Analysis of Indian Pharmaceutical Alliances (November 6, 2006). Available at SSRN: https://ssrn.com/abstract=1018022 or http://dx.doi.org/10.2139/ssrn.1018022

Gaurav Raizada (Contact Author)

Indian Institute of Management, Ahmedabad ( email )

Vastrapur
Ahmedabad, Gujarat 380015
India

Atul Pall

Indian Institute of Management, Lucknow ( email )

Prabandh Nagar
off Sitapur Road
Lucknow, Uttar Pradesh 226013
India

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