Similar to any other commercial endeavour, joint ventures have advantages and disadvantages. This post will list the most noteworthy ones.

There's a long list of joint ventures that spans various sectors and businesses around the world, some of which have actually culminated in the creation of the world's most successful businesses. That stated, there are various types of joint ventures and picking the ideal one significantly depends upon the objectives of the entities involved and the nature of their respective organisations. For instance, project-based joint ventures are a kind of collaboration that brings together 2 entities from various backgrounds to reach a common objective. This could be a JV between an industrial entity and an academic institution or short-term partnership between a business owner 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 bring together two entities that co-exist in the exact same supply chain like buyers and vendors, and they provide increased growth opportunities 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 lots of reasons why businesses go into joint ventures but possibly the most crucial of which is to leverage resources and access know-how that one company might be . missing out on. For example, one business may have excellent marketing and circulation channels however does not have a streamlined manufacturing center. By partnering with a business that has a well-established production process, both entities benefit greatly. Another reason why JVs are popular is the fact that businesses share expenses and risks when embarking on a joint venture. This makes the collaboration more appealing as both entities would share the expense of labour and advertising, and they both gain from lower production costs per unit by leveraging their abilities and integrating knowledge.

Business expansion is an auspicious objective that any entrepreneur considers at some time during their professional career, nevertheless, it can be a very difficult and pricey procedure. It is for these reasons that some business owners go with joint ventures when attempting to break into new markets and territories. Launching a world-class joint venture such as Telkom Indonesia and Telstra's joint venture can significantly increase the possibilities of success as partners pool their resources and connections in an effort to increase performance. For example, a business wanting to broaden its distribution to new markets and territories can benefit from partnering with regional businesses. This way, it can take advantage of an already existing regional distribution network, not to mention having access to understanding and proficiency on the target audience. Beyond this, policies in certain jurisdictions limit access to foreign businesses, implying that a JV arrangement with a local entity would be the only method to gain access.