Keywords: multinational enterprises, MNEs, brands, patents, lines of credit, manufacturing outsourcing, horizontal sales, third–country manufacturing, strategic alliances, chain stores, competitive positioning, family firms, family businesses, pharmaceutical industry, Peru, cross–border markets
Strategic alliance: case study in competitive positioning
The case seeks to identify some of the issues encountered in the development and growth of a family–owned firm in the pharmaceutical business in Lima, Peru. Having overcome the initial challenges of its establishment, the company has become a visible and viable competitor in the Peruvian market and is poised to expand in cross border markets by exploring the prospect of a strategic alliance with a suitable pharmaceutical firm or a chain store in these markets. Senior management must evaluate the issues associated with an alliance that entails manufacturing for foreign companies.