Value creation

Wilson had the built-in sales structure to increase demand amongst physicians and established knowledge of how to reach competitors. Crawford-Beckman had the drug that Wilson desired. Crawford-Beckman, as a small company, wished to develop more pharmaceutical products, and the agreement also specified the two companies would co-develop a ne drug in the future. The companies would remain separate in structure, but a new structure would be created to support their partnership with specific delegation of responsibilities within the team. The joint divisions were, in general, partnerships of equals.

However, problems arose regarding the idea that both companies were supposed to equally support and share in the costs of marketing the drug. Wilson resented the greater investment it had made in terms of its pre-established resources into marketing the drug and Crawford-Beckman resented the burden it felt it was being forced to shoulder by a larger competitor. Each company...
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