Joint ventures can be beneficial to businesses aiming to broaden to new markets and areas. Continue reading for more information.

For decades, joint ventures in international business have culminated in mutually advantageous outcomes, and entities such as Geely and Concordium's recent joint venture is a fine example on this. There are numerous reasons why companies go into joint ventures however possibly the most essential of which is to leverage resources and access website expertise that one company might be missing. For instance, one business may have outstanding marketing and distribution channels but lacks a structured production center. By partnering with a business that has a reputable production process, both entities benefit significantly. Another reason why JVs are popular is the reality that companies share expenses and risks when embarking on a joint venture. This makes the collaboration more enticing as both parties would share the expense of labour and marketing, and they both gain from lower production expenses per unit by leveraging their capabilities and combining expertise.

There's a long list of joint ventures that spans different 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 various types of joint ventures and picking the right one significantly depends on the objectives of the entities included and the nature of their respective organisations. For instance, project-based joint ventures are a type of collaboration that unites 2 entities from various backgrounds to reach a shared goal. This could be a JV between a commercial entity and a university or short-term collaboration between a business owner and a government such as Farhad Azima and Ras Al Khaimah's joint venture. Vertical joint ventures are also another popular vehicle for expansion as these combine 2 entities that co-exist in the very same supply chain like buyers and suppliers, and they provide increased growth opportunities for both parties involved.

Business growth is an auspicious goal that any entrepreneur considers at some point during their professional career, nevertheless, it can be a really stressful and expensive process. It is for these factors that some entrepreneurs go with joint ventures when trying to get into new markets and areas. Launching a world-class joint venture such as Telkom Indonesia and Telstra's joint venture can considerably increase the opportunities of success as partners pool their resources and connections in an drive to increase effectiveness. For example, a company wishing to expand its distribution to new markets and territories can take advantage of partnering with regional players. By doing this, it can gain from a currently existing local distribution network, not to mention having access to knowledge and know-how on the target market. Beyond this, guidelines in specific jurisdictions limit access to foreign companies, implying that a JV agreement with a regional entity would be the only method to gain admittance.