Joints ventures s a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity. In a JV, each of the participants is responsible for profits, losses, and costs associated with it.
Alliances Collaborative business relationship between two or more entities that share assets, expertise, risks, rewards, and control to create greater value for their customers and for their own organizations than could be efficiently accomplished independently
Why would we opt for Joint ventures and alliances
- To set prices - Oligopoly
- Usually, there are serious implications when there are collisions
- Maintain stability - coopetition
- Inspire innovation thought which knowledge can be exchanged and intertwined in order to reinvent products