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| 1. |
What is joint ventures?? |
| Answer» Joint Ventures can be with a company of same industry or can be of some other industry, but with a combination of both, they will generate a competitive advantage over other players in the market.Benefits of joint ventures are :1.Reduces competition : When two companies join together, it results in reducing the competition as instead of wasting resources in competition they will strengthen their organisation.2.Reduces risk : High risk involved in new and innovative ventures can be reduced when two companies join together to share the risk.3.Advanced technology : By joining hands with foreign companies, Indian companies can get the benefit of advanced technology.4.Large capital : In joint ventures, two companies together contribute capital. As a result, large capital can be arranged without much difficulty.5.Reduction in cost: When two firms join together, they can operate on a large scale and get the benefit of economies of scale hence reduces cost of production and marketing. | |