Usefulnessof joint venture or strategic partnership

Question

When is a joint venture or strategic partnership useful?

Answer 1

A joint venture or strategic partnership can be useful in at least three kinds of circumstances:

i. To follow an opportunity that is too uneconomical, complex, or risky for a single organization to follow alone.

ii. When the opportunities in a new industry need a wider variety of competencies and know-how than any one organization can assemble.

iii. To gain entry into a attractive outsider market especially when the outsider government needs companies wishing to enter the market to safe a local partner.