Knowing when to embark on a joint venture and who to do it with is essential. More about this below.

There's a long list of joint ventures that covers different sectors and businesses across the globe, some of which have culminated in the creation of the world's most successful companies. That stated, there are various types of joint ventures and picking the best one significantly depends on the objectives of the entities included and the nature of their respective organisations. For example, project-based joint ventures are a type of partnership that combines two entities from different backgrounds to reach a common objective. This could be a JV in between an industrial entity and an academic institution or short-term collaboration between a business person and a federal government such as Farhad Azima and Ras Al Khaimah's joint venture. Vertical joint ventures are also another popular means for expansion as these unite two entities that co-exist in the exact same supply chain like buyers and suppliers, and they offer increased growth chances for both parties involved.

For decades, joint ventures in international business have culminated in equally advantageous results, and entities such as Geely and Concordium's recent joint venture is a good example on this. There are numerous reasons why businesses go into joint ventures however perhaps the most essential of which is to leverage resources and access knowledge that one business may be missing out on. For example, one business may have excellent marketing and distribution channels but lacks a streamlined manufacturing hub. By partnering with a business that has a reputable production process, both entities benefit greatly. Another reason JVs are popular is the reality that companies share costs and risks when starting a joint venture. This makes the collaboration more attractive as both entities would share the cost of labour and advertising, and they both benefit from lower production costs per unit by leveraging their capabilities and combining knowledge.

Business growth is an ambitious objective that any business owner considers at some time throughout their career, however, it can be an extremely stressful and expensive process. It is for these factors more info that some businessmen opt for joint ventures when trying to get into brand-new markets and areas. Launching a world-class joint venture such as Telkom Indonesia and Telstra's joint venture can significantly increase the chances of success as partners pool their resources and connections in an attempt to increase performance. For example, a company wishing to broaden its distribution to new markets and areas can benefit from partnering with regional businesses. In this manner, it can take advantage of an already existing regional distribution network, not to mention having access to knowledge and proficiency on the target market. Beyond this, guidelines in specific jurisdictions limit access to foreign businesses, meaning that a JV arrangement with a regional entity would be the only way to gain admittance.