Knowing when to embark on a joint venture and who to do it with is important. More about this below.

For years, joint ventures in international business have actually culminated in mutually beneficial outcomes, and entities such as Geely and Concordium's recent joint venture is a good example on this. There are many reasons why businesses enter joint ventures however perhaps the most crucial of which is to leverage resources and access know-how that one company may be missing out on. For example, one business might have outstanding marketing and distribution channels but does not have a streamlined manufacturing center. 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 companies share costs and risks when embarking on a joint venture. This makes the collaboration more attractive as both parties would share the expense of labour and marketing, and they both take advantage of lower production costs per unit by leveraging their capabilities and combining knowledge.

There's a long list of joint ventures that spans various sectors and companies around the world, some of which have culminated in the development of the world's most prosperous businesses. That said, there are different types of joint ventures and picking the best one considerably depends upon the objectives of the entities included and the nature of their respective organisations. For example, project-based joint ventures are a type of collaboration that unites two entities from various backgrounds to reach a shared goal. This could be a JV between a business entity and a university or short-term partnership in between an entrepreneur and a government such as Farhad Azima and Ras Al Khaimah's joint venture. Vertical joint ventures are also another popular means for growth as these unite two entities that co-exist in the very same supply chain like buyers and wholesellers, and they provide increased development chances for both parties.

Company growth is an ambitious goal that any entrepreneur considers at some point throughout their professional career, nevertheless, it can be a very demanding and pricey process. It is for these reasons that some business people choose joint ventures when attempting to break into 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 instance, a business wanting to broaden its distribution to brand-new markets and areas can benefit from partnering with regional players. This way, it can gain from an already existing regional distribution network, not to mention having access to knowledge and know-how on the target market. Beyond this, policies in specific jurisdictions restrict access to foreign businesses, implying that a JV agreement with a regional entity would be the get more info only way to gain access.