Much like any other business read more endeavour, joint ventures have advantages and downsides. This post will note the most noteworthy ones.

For decades, joint ventures in international business have culminated in mutually advantageous results, and entities such as Geely and Concordium's recent joint venture is a fine example on this. There are lots of reasons why companies enter joint ventures but potentially the most important of which is to leverage resources and access competence that one business may be missing out on. For instance, one business may have excellent marketing and distribution channels but does not have a streamlined production hub. By partnering with a business that has a well-established production process, both entities benefit significantly. Another reason JVs are popular is the reality that businesses share costs and risks when starting a joint venture. This makes the collaboration more appealing as both parties would share the expense of labour and advertising, and they both benefit from lower production costs per unit by leveraging their abilities and integrating knowledge.

There's a long list of joint ventures that covers various sectors and companies around the world, a few of which have actually culminated in the creation of the world's most prosperous companies. That said, there are various types of joint ventures and choosing the best one considerably depends on the goals of the entities involved and the nature of their respective organisations. For instance, project-based joint ventures are a type of partnership that combines two entities from various backgrounds to reach a common goal. This could be a JV between a commercial entity and a university or short-term collaboration between a businessman and a federal government such as Farhad Azima and Ras Al Khaimah's joint venture. Vertical joint ventures are likewise another popular vehicle for expansion as these unite 2 entities that co-exist in the very same supply chain like buyers and wholesellers, and they offer increased development opportunities for both parties involved.

Company growth is an ambitious goal that any entrepreneur thinks about at some point during their professional career, nevertheless, it can be a very difficult and costly process. It is for these factors that some business people opt for joint ventures when trying to break into brand-new markets and areas. Launching a world-class joint venture such as Telkom Indonesia and Telstra's joint venture can greatly increase the possibilities of success as partners pool their resources and connections in an attempt to maximise efficiency. For example, a business wishing to expand its distribution to new markets and territories can benefit from partnering with local players. By doing this, it can gain from an already existing regional distribution network, not to mention having access to understanding and expertise on the target market. Beyond this, guidelines in particular jurisdictions restrict access to foreign companies, suggesting that a JV contract with a regional entity would be the only way to gain admittance.