REASONS FOR FORMING A JOINT VENTURE
Internal reasons
- Build on company's strengths
- Spreading costs and risks
- Improving access to financial resources
- Economies of scale and advantages of size
- Access to new technologies and customers
- Access to innovative managerial practices
Competitive goals
- Influencing structural evolution of the industry
- Pre-empting competition
- Defensive response to blurring industry boundaries
- Creation of stronger competitive units
- Speed to market
- Improved agility
Strategic goals
- Synergies
- Transfer of technology/skills
- Diversification
