Joint venture is typically a merger of two or more organizations. Often, it is a result of cost-reduction targets and, sometimes, business shakedown of one or more organizations. It is one of business strategies to sustain or save business operations from shutdowns.
Joint ventures were also made out of shared business values and directions between two or more organizations. It is often mutually made to intensify business operations and market reach through consolidated operations and integrated marketing. It is also forged from the need to outsource some outsource some business processes, as a cost-saving tactic. The venture also attempts to create a new market.
Ventures do not merely share vision but resources. Organizations share skills, funds, supply, technology, marketing campaigns and markets to operationalize a business direction.
CNN and ESPN, both being media giants, partnered to deliver the best sports news. CNN and Time magazine merged, too, to cover more comprehensive current events. CNN shared their global TV reach to deliver sports and current events that ESPN and Time are experts. In turn,, CNN saves field operations cost because their two partners already covered them.
Both made an integrated marketing platform in the internet, TV and print. Each marketed contents and campaigns of its partners.
The CNN-Time partnership is more special though because they are two different media format—TV for CNN, print for Time. Their joint venture made each an instant expert of the unknown field and eventually expands their market.
Comprehensive planning is required to effect a successful joint venture. A check and consolidation of resources to be shared are needed to determine win-win profit-sharing scheme. The scope of work should, more importantly, be identified in details to prevent operation overlaps, skewed profit shares and resource lapses. Understanding each resource, operation and capacity would eventually produce an acceptable terms and conditions of a joint venture agreement.
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- Rivers Corbett, MBA is an award winning entrepreneur, speaker, and author of "13 Fears of Entrepreneurs" He has received numerous business honors including Entrepreneur of the Year, Canada's Hottest Start-ups List and Canada's Fastest Growing Companies list through Profit magazine and most recently recognized as one of Canada's 10 Mentor RockStars.. Rivers is presently a member of Startup Canada's National Advisory Council, founding entrepreneur of StartUP Fredericton & the "Entrepreneur in Residence" at the University of New Brunswick. His real joy and expertise is being a StartUP Advisor and "zagging while everyone else zigs"...like his two newest businesses ventures the Relish Gourmet Burgers restaurant chain and TheRockStar StartUP for StartUP entrepreneurs. Oh... he is also the leader of a team of over 25 chefs through his other company The Chef Group. Not bad for a guy who hates to cook. Always looking for a new idea to help businesses' succeed...this is his newest marketing discovery for StartUPs The Lyoness Advantage. "Rivers is a 21st century entrepreneur, he's the one to watch" - Jim Gilbert: Canada's Huggable Car Dealer!