Business

Examples of joint venture

Joint venture

It is an English word whose meaning is business collaboration and is applied in cases in which two or more companies or legal entities come together to work based on a certain market or to start a specific business for an explicit time.

The main purpose or purpose of this type of association for a certain time is to obtain higher profits than those that can be achieved by working separately, which is why the name it bears as its title. This type of relationship is based on a contract or association , that is, a written document through which the guidelines or guidelines are established, the duties and obligations that each of the companies participating in this collaboration must comply with.

It should be noted that the fact that the companies that are going to collaborate work together does not mean that their personal integrity (legally speaking) is involved in the collaboration. The only direct relationship that they are going to present is that of the common project that can be carried out in the short, medium or long term.

In this type of contract , the degree of participation of each of the companies, the contribution that each one will make, the ease and availability of sharing important information for both, as well as the control of the project until its completion , are specifically reflected .

Characteristics

  • You can settle for two or more companies
  • In this business collaboration , profits, losses, benefits and contributions are shared.
  • Each of the participating companies maintains its independence , its brand and its logo .
  • The assignments, duties and rights will be specified according to the guidelines established in the contract .
  • This type of collaboration can be by partnership or by contract.

Join Venture Examples

  1. The car rental companies Ryanair and Hertz.
  2. Cabify and Glovo
  3. Iberian Quick Meals and Burger King
  4. Coca cola and Mc Donalds
  5. Siemens and Nokia
  6. Sony Ericsson which is the result of the alliance between Sony and the Swedish company Ericsson
  7. Paypal and Ebay
  8. Pfizer and Hisu
  9. Finish and Bosch
  10. El Corte Inglés and Starbucks
  11. ITEL and DigiProces
  12. United Cinemas and Pepsi
  13. Seat Volkswagen

One of the most important factors in Join Venture is cooperation ; For this, pacts and agreements are signed in order to add resources and join forces, in addition to making a joint investment in advertising and marketing strategies.

It may also be the case that the companies involved share clients ; the alliance of these companies should result in benefits both in terms of brand and reputation and in sales. It should be taken into account that in these joint agreements there are no officially established requirements for all of them so that they vary according to the agreement of the companies that form said agreement.

It is also necessary to take into account that when forming a Join Venture with a company, it ceases to represent a competition, on the contrary, they are a complement such as food and beverage companies, household appliance companies and products for the household, even clothing brands can form joint strategies.

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