Joint venture: Two or more firms coming together to form a group and work together to achieve the common goal. This is more useful when you want to improve your company product to abroad. Some companies may have good capital and good working capital but could not able to do well in their field.
Some companies may have good technicians, machines, and good working techniques but could not able to survive in market. On the other hand some companies may have good market value but could not able to do well due to insufficient capital to improve their working plants. There are certain things need to consider while forming a joint venture. Partner selection is the main things need to consider while forming joint venture. You have to look for a partner who is in same industry.
Proper and open written agreement has to be made between the partners. Share holding should be defined with proper manner. The market research should be done before forming a joint venture as it is the tool to carry out process successfully.
