Topic International Marketing Discuss the advantages and disadvantages of joint venture.Explain their popularity ? Must be...

Topic International Marketing

Discuss the advantages and disadvantages of joint venture.Explain their popularity ? Must be two Paragraphs

Expert Solution

Joint venture

Joint venture is the combing of two or more different business for the purpose of meeting common goals together. Here actually different multiple business will join for the common objectives. After making a team then there is ni seperation.

Advantages

There are many advantages for joint ventures. Here when the companies join together then the limitation of resources will be avoided. Then the company have more resources and no limitations. Production cost will be get reduced because the infrastructure facility and new innovative ideas will be enhanced. So the overall function will be more advanced. Here the main advantage is that the capacity of the company will increase thus the production and distribution also increase. These are the advantage of joint venture

Disadvantage

Eventhough there are also some disadvantages are there for joint ventures. Because here we know that two different companies may be from different background and culture join together so there will be many problems will occur. The flexibility of the company will reduced because they can not perform like previous and they are forced to consider the another opinion. And there is also a different mechanism will clash with each companies. The strategies, policies, working will be different for these companies and this will make some serious trouble. Here we can not judge how much another company included or involved in decision making, strategy making, and working so that it can not be measured. We can not measure the performance. These are the disadvantage of joint venture.

Anyway Joint ventures are very much popular in these recent past and make some impact in the business world. The main reason is the strength of the company because here we can see the group strength and this will helps the company for making longterm commitments and workings. This makes joint venture more acceptable by everyone.

ThankYou....

jeff jeffy answered 1 year ago

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