Marketing Mix – Joint Venture Marketing
International Business Management
Student Name – Dhaval Shah
Student Number – M00342031
Submitted
ELLIS L.C. OSABUTEY
Joint Venture
“Joint venture marketing is a business agreement where at least two or more people join up to work on a particular project, market or two runs a business. ” (M LEVENHAGEN)” A joint venture is a kind of agreement in which individuals create a new business entity or official business relationship by sharing their investment and operation expenses and they share profits equally and are equally liable for the loses.”
Joint ventures basically mix combination of two or more parties sharing assets capital entity for a certain period of time or for a particular task or project. In joint venture both the parties are beneficial both locally and sometimes internationally. Also a days international joint venture is preferred by most of the MNCs as they think that it is much more helpful in developing their organization globally. Joint venture basically a contract between two companies having common objectives and they work to gather to achieve their goal. E.g. Vodafone makes collaboration with Indian telecom – Indication Company Hutchison, Essar to develop their business in Indian market which resulted for improvement in the service of Hutchison, Essar to a greater extant. This was benefitial for hutcheson and essar and even to its customers. There are certain more examples of successful international joint ventures such as Maruti and Suzuki, Sony and Ericson Tata and jaguar. The main reasons for joint ventures are enquiring finance, so that they can work on the development of project by making certain changes as per the requirement of the market. If two parties work together it is obvious that they can think more innovatively about how to create the product at the lower cost and maintain the quality or by upgrading the quality. This is only possible if optimum utilization of resources is done which is only possible by latest technology and for adopting such technology again. International joint-venture is must, because if the company in a developed country make collaboration with the company of developing country or under-developed country it can be possible for such countries for the technological advance. There are mainly two types of joint-ventures which can be adopted by the companies they are (a) equity based joint ventures; which is beneficial for foreign and local private interest, group of interest and public. (B) Non equity based joint-venture; also known as co-operative agreement which are collaboration like technical agreement, franchise and brand based agreement,