Chapter 9 Understanding Alliances

     So why would a company enter an alliance with another company?  In many instances companies align strategies because with two or more firms combining resources and capabilities in order to enhance the competitive advantage of all parties.          

     Merck has many alliances with smaller companies in which Merck takes a greater responsibility, this qualifies as an equity alliance.  A bigger strategic alliance in which Merck partnered with is PAREXEL International Corporation.  The partnership provide strategic access to global clinical development services for designated biosimilar candidates to Merck BioVentures. So, in English the job of PAREXEL is for their organziation is to help expedite time to market products for Merck BioVentures. I think the easiest way to see if these two oraganization were successful are stock prices because they are both publically traded companies.
     When the press release came out in January 12, 2011 the stock price of Merck(MRK) was 37.15 per share with the volume at 12,888,900 and today, June 25, 2013 the stock is 46.41 and shares are 18,080, 700.  PAREXEL(PRXL) stock price was 20.45 and the share volume was 946,100 volume.  Today, June 24, 2013 the stock price is now 48.56 and the volume is 684, 300.
     After a quick glance the stock prices went up for both Merck, up $9.26, and PAREXEL, up $28.11.  Of course this alliance is not the only reason that both companies stock prices went up , but with a quick glance I have to say this partnership was and still is a total success.

Source
PAREXEL Partnership