JOINT VENTURES
JOINT VENTURES
This Is a management tool consisting of an association between two or more companies for a period of time, for joint development of commercial or productive activity type, in order to achieve a common goal that individually would be difficult to achieve.
Advantages
- Increased long-term benefits.
- Greater control and experience over the production process and local marketing.
- Market Knowledge (know how).
- Access to new distribution channels.
- Overcoming trade barriers.
- Increased competitiveness through improved quality systems and the expansion of relations or connections.
- Achieve synergy more effectively by working together, increasing profits and productivity.
- Share human and technological resources, efforts, risks and responsibilities.
Objectives
- The creation of a new business.
- New product development.
- The provision of a service.
- Incursion in a foreign market.