South-Western - Management  
Dendrite and MDM Form Strategic Alliance to Expand Pharmaceutical CRM Capabilities in Central and Eastern Europe
Topic Global Management
Key Words Strategic alliance, global, partnership
InfoTrac Reference A99846742
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News Story 

Dendrite International, a company that develops and delivers software solutions to the pharmaceutical industry, has announced a newly formed strategic alliance with Medical Data Management Group (MDM). MDM provides physician databases and marketing and promotional services to pharmaceutical companies in Central and Eastern Europe (CEE). By joining forces, both companies will have the ability to deliver a broader array of services and extend their reach into new markets.

15,000 pharmaceutical sales representatives currently work in CEE, and sales forces are expected to experience double-digit growth in coming years. Both companies have a well-established presence in the market already.

This alliance represents an important step in Dendrite's global business strategy. The company will partner with strong local vendors to deliver regional and global sales and marketing solutions for its multinational pharmaceutical customers. Since MDM is already established in CEE, the partnership will help them reach their goal.

As part of the agreement, MDM will co-market some of Dendrite's software.

Questions
1.

Define strategic alliance. Does this example fit your definition?

2.

How do the two companies benefit from this kind of agreement? What kinds of problems could arise for the companies from this strategic alliance?

Source "Dendrite and Medical Data Management Form Strategic Alliance to Expand Pharmaceutical CRM Capabilities in Central and Eastern Europe," Internet Wire April 10, 2003.
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