For more understanding of Joint Venture Assignment Help we have taken the Intel Corporation and General Electric Company (GE) and discussed the joint venture between Intel and GE Joint Venture between Intel and GE In the year 2009, Intel Corporation and General Electric Company (GE) have announced a 50/50 joint venture to form a healthcare company to focus on telehealth and independent living.
Both of these companies signed a definitive agreement to create a new healthcare company by combining the assets of GE Healthcare’s Home Health division and Intel’s Digital Health Group. This alliance has formed to provide speed innovation and delivery of products to the healthcare market. The newly developed joint venture company is known as Intel-GE Care Innovations that create products for disease management (Intel, 2012). Intel Corporation is an American multination corporation that designs, manufactures and sells integrated digital technology and semiconductor chips worldwide. Intel also designs and builds essential computer technologies that serve as the foundation for the world’s computing devices. It is the world’s largest semiconductor chip maker (Yahoo Finance, 2012).
On the other hand, GE Healthcare is a division of General Electric (GE), which is also a U.S., based multinational company that operates in energy, technology infrastructure, capital finance and consumer & industrial segments. GE is world’s biggest manufacturer of healthcare imaging and information technology systems. GE Healthcare provides transformational medical technologies and services including medical diagnostics, patient monitoring systems, drug discovery, biopharmaceutical manufacturing technologies etc. at a lower cost. At present, GE Healthcare is a major firm in the healthcare industry by providing professional services in more than 100 countries (GE Healthcare, 2012).
Responsible Circumstances for Alliance: At present, the society is facing several issues related to increasing cost of healthcare, global aging population and dramatic increase of people who live with chronic conditions. All these issues create tough circumstances for millions of people all over the world that motivated Intel and GE to form a joint venture for creating an effective and advanced model of healthcare services (G.E. and Intel Form Health Venture, 2010). Along with this, the control on healthcare costs and improvement in the quality of healthcare services are the major challenges that millions of people face today. The continuous innovation in healthcare technology especially in home health technology is also responsible for this alliance that was observed as an opportunity by both firms. All these situations or circumstances forced the joint venture between Intel and GE (McGrath, 2010).
Reasons behind the Joint Venture: There are several reasons or factors behind the joint venture between Intel and GE to create a healthcare company. To bring more effective healthcare into millions of home as well as improve lives of people with chronic disease management is the main reason behind this joint venture (G.E. and Intel Form Health Venture, 2010). Along with this, to effectively address social issues like aging population, increasing healthcare costs and chronic conditions of a large number of people are also the motive behind the alliance between these two companies. Intel and GE have formed this healthcare alliance to mainly focus on telehealth, independent living, chronic disease management and so-called assistive technologies in order to improve lives of people (McGrath, 2010). Telehealth is a delivery of health-related services and information from one country or place to other through information or telecommunications technologies.
Effective telehealth is helpful to decrease overall cost of healthcare service (McGrath, 2010). GE has expertise in healthcare services, while Intel Corporation has expertise in technology that’s why both these companies decided to form this joint venture to deliver telehealth services by using the expertise of each other. At the same time, to improve longevity and quality of life for millions of people through advanced medical technology is also a basis of healthcare alliance between Intel and GE (Jones & Groom, 2011). The development of management solutions for people in and outside the United States is also a reason of forming this joint venture. In recent years, Intel Corporation has continuously increased their involvement in the healthcare industry by launching medical devices such as Intel Health Guide and Intel Reader. Along with this, the management of Intel Corporation also wanted to expand their business in healthcare industry by making some joint ventures (King, 2010). This factor also played an important role in forming a joint venture between GE and Intel to create a healthcare company.
Similarities between Companies: Intel Corporation and GE both are U.S. based companies as well as operating their business worldwide. In recent years, both these companies have been increasing their involvement in healthcare industry with the help of GE Healthcare’s Home Health division and Intel’s Digital Health Group. Along with this, Intel and GE both have a common vision to use information technology in order to bring effective healthcare services to millions of people at their homes. Sharing a common vision is also a similarity between the two companies. Additionally, both these companies have enough capital resources, expertise, clear vision and technological infrastructure to provide healthcare services across the globe (G.E. and Intel Form Health Venture, 2010).
References:
G.E. and Intel Form Health Venture. (2010).
Retrieved from http://www.nytimes.com/2010/08/03/technology/03health.html GE Healthcare. 2012). Retrieved from http://www3.gehealthcare.com/en/Global_Gateway Intel. (2012).
Retrieved from http://www.intel.com/pressroom/archive/releases/2010/20100802corp_sm.htm Jones, S & Groom, F.M. (2011). Information and Communication Technologies in Healthcare. USA: CRC Press. King, C. (2010). To Your Health: Intel and GE’s Joint Venture.
Retrieved from http://www.macnewsworld.com/story/70586.html McGrath, D. (2010).
Retrieved from http://www.eetimes.com/electronics-news/4205815/Semiconductor–Intel–GE-form-healthcare-joint-venture- Yahoo Finance. (2012). Retrieved from http://in.finance.yahoo.com/q/pr?s=INTC
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