They've brought community goodwill within the community, businesses and physicians. Together, we've forged and developed a rehabilitation program for the rural-based hospital. Both parties benefit from the alliance, which produces a more rapid startup of a successful rehabilitation program than either party could produce individually. MedStar has also aligned with Physiotherapy Associates, a regional rehabilitation company, to not only provide services to a larger region, but also to create a larger network needed to secure managed care contracts. Strategic alliances have their downsides, however.
Some risk is involved.
By aligning with other companies there is always a threat that the other partner will usurp the business. The partner begins to do things on his own. This presents a huge challenge for the small company, that does not have the resources to fight, especially if the partner is a large company. You can't live without them, but it's difficult to live with them, especially in a service or distribution business. It is for this reason that Schultz chooses not to align with an advertising agency or another graphics firm.