joint venture examples
Business news headlines feature successful joint venture examples throughout the marketplace, and across industries. Their success showcase reasons why joint ventures make sound business sense for companies. One reason includes the ability to share the expenses of launching a new product line related to research and development. Pooling their technological resources is another significant advantage. Additionally, joint ventures don’t usually face the same stringent government regulation that normally haunts mergers.
Driving to joint venture success
In the automobile industry recent joint venture examples include the successful teaming of Ford and Mazda. Dubbed ‘The Auto Alliance International’, which began with Ford’s idle body-casting center located in Michigan. When Mazda embarked on an expansion program, they paid for the plant and used it to build their vehicles. Later, Ford wanted a piece of the action and reached an agreement with Mazda to buy back a 50 percent stake in the property. Today this site produces both Ford Mustangs and the Mazda RXs. This is a picture perfect model for those looking for an example of how even competitors can work harmoniously toward their own goals.
A prescription for joint venture success
The pharmaceutical sector in recent years has seen several successful joint venture examples as the industry continually seeks ways to reduce the costs of research and marketing. Novartis and Procter & Gamble joined up and brought the drug Enablex to the marketplace together. At one point, Novartis was marketing the drug as Emselex, a prescription offered to patients for the treatment of incontinence. Eventually, Novartis sold the U.S. rights exclusively to Warner Chilcott. By saving money on the front end with their first joint venture agreement, Novartis was able to make their business attractive to other bidders. Currently, Enablex has an estimated 25 percent market share globally.
When considering a joint venture partnership, it’s necessary to keep your eye on moving the ball down the field toward success. If the long-term goal is to sell off the separate entity, remaining lean but sound is critical to attract future offers.
Mobile industry joint ventures
Successful joint venture examples in the fast growing mobile industry include Sony Ericsson. Sony, the popular company from Japan, is well known for its excellence in marketing electronics globally. The hallmark of the Swedish company Ericsson is the technology they have produced aimed at telecoms. The two formed a hard to beat alliance producing high quality mobile phones. The two companies tapped into their extensive marketing network, and stellar reputations to create a strong alliance.
Look around your community or industry to identify market leaders, which offer products, or services that can compliment your business efforts. A bookkeeping provider does not have the same expertise as a tax professional. They perhaps would consider forming a partnership with a tax firm because their clients need this service. On the other hand, a tax attorney or firm does not want the daily or monthly management responsibilities related to bookkeeping. Together, a joint venture will allow the two partners to expand their knowledge, personnel and customer base.
christian fea is CEO of Synertegic, Inc. A joint venture marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
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