Question

Under which conditions are joint ventures a useful way to enter new industries? Provide an example of a joint venture not listed in the textbook. Discuss why the companies in your example pursued a joint venture.

Answer 1

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the joint venture is referred to as when two or more businesses mixing their reserves, creativity or capital to achieve a specific goal. The hazards and profits within a business are also distributed. The purpose of constructing a joint venture involves such as business growth, development of new goods or maybe moving business overseas.

If a joint venture is to enter into a new industry important for the joint venture to be realistic about the strengths and weaknesses and analyze the performance while discovering whether the business is good or not.

Also, what is important in a joint venture is planning. So, a joint venture to be useful and successful it's important that proper strategies are being planned and executed accordingly.

Also, it's effective when the management and employees of organizational attitude and mindset are positive for the coming projects and Ventures. This helps them to learn about the venture easily and increase productivity.

With this, having the right partner for the joint venture is quite important for the company to succeed.

An example of a joint venture is a Volvo and uber car venture. Basically both Uber and Volvo use the same base vehicle for the next stage of their own autonomous car strategies. So, it's beneficial for both the company to team up and work in the same direction that will create wonders. This joint venture pertained to Uber expanding its own self-developed independent driving systems to the Volvo so that tragedies by self-driving technology can help solve.