Case Analysis- ALPES S.A.: A JOINT VENTURE PROPOSAL
1. Key Issue
Charles Rivers Laboratories (CRL) is evaluating a joint venture proposal that a Mexican company creates a state-of-the-art specific pathogen-free (SPF) egg for the vaccine. If the proposal is approved, CRL is going to invest 2 million dollars to the Mexican company. However, CRL must consider the potential risks of cooperation.
2.Internal Analysis: VRINE ANALYSIS
Charles River Laboratories has a large variety of customers more than 15 countries, which means CRL is already capable to expand overseas market. The demand of SPF eggs is very high due to making flu vaccine. More than 100 million…show more content…
Additionally, the bond the friendly relationship between the two family-style director boards has been combined successfully.
Technologically, having been founded in 1947, CRL was the global market leader in the commercial production and supply of laboratory animal models for use in discovery and research and the development and testing of new pharmaceuticals. CRL has taken the leadership position in SPF eggs production after the acquisition of SPAFAS. Additionally, Alpes was the only franchisee in Mexico. Given that production capacity is less than needed and highly sanitary standards are expected to be met, challenge still exist.
Environmentally, the old informal “handshake agreement” can be still influential when joint venture is functioned. And then, the market needs more production which means demand is more than current storage supply. The business opportunity is huge ever. Board directors are divided into two piles, one is supportive of the proposal and another is more objective to this business move. The freezing situation stands between Alpes and CRL: Alpes is in urgent need of capital investment, while CRL claims the acquisition.
Legally, Asian and European vaccine regulations are getting more and more strict and high-quality standard and tend to be more preferable to the vaccine