HSA 6108
Assignment Number 3
There are major factors that can cause an alliance to fail. One is lack of interest as time
passes, the enthusiasm fades away which leads to the weaning of alliance support. Another
example is keeping all parties engaged and aware of the goals. Lack of managerial leadership
leads all participants not focusing on the main goal. There are many components that are key to
an alliance's success. Not only is it important to have a narrow set of goals but a management
structured to track success. They are easier to commit and keep track of. Trust is another key
factor in a successful alliance or any type of relationship. Lack of trust can create unnecessary
friction and opportunistic behavior.
An example of a successfully formed alliance is CVS Pharmacy and Aetna, a managed
care company. Both companies are in the health industry with different delivery systems. If I
remember correctly, several years ago CVS began to offer healthcare in some of their locations.
Now, you can purchase Aetna CVS Health Plans to reduce your healthcare costs. CVS Aetna
alliance is a prime example of a vertical and horizontal integration. It is horizontal because their
delivery was different and assumed competitors. Vertical integration occurs because Aetna
provides the coverage for the prescriptions offered by CVS. This remains the same.
This is an example of a successful alliance because CVS Health has flourished and their
number of clinics have increased over the years. I remember a few months ago reading a news
article that Walgreens is to close 400 stores by the end of 2024, which is a huge competitor of
CVS. Not only does CVS Health offer care through their clinics but now they sell “Aetna CVS
Health Plans” which is healthcare coverage or an insurance premium through ACA.
