Joint Venture

Strategic Alliance - Business Management                       

A joint venture or strategic alliance is a highly flexible mechanism designed to share risks and rewards. The use of strategic alliances and joint ventures is rapidly becoming popular with a growing number of multinational firms. 

Partners in a strategic alliance can benefit from many aspects of a cooperative relationship like access to unfamiliar or untapped markets, risk sharing, economies of scale, shared technology, and decreased costs.

The logic behind strategic alliance is that each partner can bring complementary strengths to the table, resulting in a competitive advantage for the participants collectively.

Economies of scale can be achieved when two or more firms pool their resources together, maximizing efficiency based on the project's needs.

In cases where firms do not have the same strengths, creating alliances can allow them to share technology. This, in turn, can help firms produce more efficiently or at a higher quality.

Alliances, if done well, can lead to outperformance and competitive advantage & will be a key to success.

Aiyan Thiruvalluvar says

துணைநலம் ஆக்கம் த்ருஉம் வினைநலம்

வேண்டிய எல்லாந் தரும். (651)

साथी की परिशुद्धता, दे देती है प्रेय ।
कर्मों की परिशुद्धता, देती है सब श्रेय ॥ (६५१)

Explanation by Scholars: 

The efficacy of support will yield only wealth and the efficacy of action will yield all that is desired.

ஒருவருக்குக் கிடைக்கும் துணைவர்களால் செல்வம் மட்டுமே பெருகும். அவர்களுடன் கூடி ஆற்றிடும் செயல்களால் வலிமை, செல்வம் மற்றும் எல்லா நலன்களும் கிட்டும்.