A joint venture is particularly suitable for implementing major projects that are difficult or impossible for a company to implement on its own. Cooperations like these can also be helpful to give the business a better position against the competition or to open up new markets – e.g. with the help of a local partner. It could also simply be a matter of asserting common interests over third parties.
Companies entering into joint ventures often pursue long-term goals, including new product developments or fundamental research. Medium-sized companies hoping to establish themselves internationally often choose this path. Together, supply chains can be designed more efficiently and market risks can be mitigated or even avoided.
The partners ideally complement each other in terms of skills, infrastructure, and resources, and contribute a wide variety of assets, such as operating facilities at different locations, land, qualified employees, relevant specialist knowledge, proven market knowledge, important contacts, and specific management skills.