1. Joint venture
Meaning A joint venture is an
agreement between two or
more parties to combine their
available resources with those
of the other party (or parties)
to complete a
particular objective.
2. Example Organisations may
establish joint ventures for
production purposes,
research purposes, etc.
Major corporations and
smaller businesses may work
together in a joint venture
to undertake a single or
several large projects.
4. In 2003, the German automobile
company BMW joined forces with
the Chinese automobile maker
Brilliance Auto Group to create a
joint venture. BMW Brilliance is the
name given to the joint venture that
was established to manufacture and
sell BMW vehicles in China. This is an
example of a joint venture formed
for the purpose of entering
a foreign market.
Example
5. Benefits of Joint Venture
1. Establishing Entry into New Markets and Distribution
Networks
2. Access to Technology
3. Economies of scale
4. Innovation
5. Low Production Costs
6. Established Brand Name
6. Disadvantages of Joint venture
Conflict of Control - In a joint venture, both parties
share ownership and management. The dual
ownership arrangement results in conflicts, leading to
a battle of control between the businesses.
Lack of Coordination - The functioning of the
business can be affected if there is a lack of
coordination among the partners.
The disadvantages of Joint Venture are:
7. Clash of Culture - A joint venture brings in
people with different cultures to work together.
Although it has the potential to provide
innovative solutions to the workplace, it has
some drawbacks. Some employees are not
willing to compromise and resistant to change.
As a result, there may be cultural differences
among the organizations.
Trade disclosure - In joint ventures, foreign
firms agree with local firms and share trade
secrets. Thus, there is always a risk of trade
secrets and technology being disclosed to
others.
8. Meaning of joint venture marketing
A joint venture marketing refers to a collaborative
effort between two or more businesses to
promote their products or services. Here's a
breakdown of its meaning, advantages, and
disadvantages:
*Meaning:*
Joint venture marketing involves two or more
businesses pooling their resources, expertise, and
networks to execute marketing campaigns or
initiatives. It could involve co-branding, co-
marketing campaigns, or joint product launches.
9. Advantages of Joint Ventures Marketing
1. Leverage of Resources
2. Access to New Markets
3. Shared Risks And Costs
4. Increased Credibility
10. disadvantages of Joint Ventures Marketing
1. Loss of Control
2. Dependency
3. Legal and Regulatory
Challenges
4. Complexity
11. Strategy Of Joint Venture Marketing
1 Select Partners
2 Identify Objectives
3 Define Target Audience
4 Allocate Resources
5 Create Marketing Plan
6 Monitor And Measure Results
7 Evaluate Success And Learn
