Alliances have become an integral part of contemporary strategic thinking.” This adage holds more truth than we are willing to admit when it comes to the concept of joint ventures. With increased competition due to globalization and the expansion of economy, joint ventures might be the right strategic weapon to make a sole entity stronger.
- Companies from any industries are acceptable, e.g. retail, banking, finance, telecommunication, mass media, transportation
- You should consider companies with complementary abilities and resources such that that the joint venture can bring synergy effects like: better utilization of manpower, extension network, sharing of technology and elimination of entry barriers.
- Participants should consider the possible challenges and solutions. They should also evaluate the pros and cons of all of the strategic decisions.
Assumed as business consultants, participants are expected to choose two specific companies from different industries appropriate for being united in a feasible and successful joint venture based on conjectures. They have to write a thorough business plan to propose how the new entity (or possibly, the introduction of a new good or services) can maximize their synergy effects – by mutually-utilizing the two original companies’ advantages or/ and alleviating each other’s shortcomings. The ultimate aim is to augment the joint entity’s odds of survival and to maximize profits.
Quick example outlines
- Pacific Coffee Company & Xinhua Bookstore
- SCMP & local e-marketing firms
- Google & Walkman