Lush Property

1. Lush Property 21 Cambridge Dr, Shepparton North VIC 3631, Australia +61 411 718 792 Property valuation Why Joint Ventures? The ideal joint venture often proves to be a useful way to acquire access to market advantages. As a result, any business considering joint ventures as a competitive strategy should know what they are and why they should be considered. Strategic alliances result in joint business ventures. Hence, becoming aware of how to go about identifying appropriate strategic alliances is inevitable. Thereafter, the strategic fit of any joint venture should be identified and established to ensure success. Joint ventures are not necessarily straight forward and by-the-rules. Each situation must be appropriately assessed on an individual basis. So, why would a business consider undertaking a joint business venture? These are ideal for three general types of situations. Initially, a joint business venture is a good idea when it offers uneconomical opportunities or assists in facing a business risk, eliminating a business having to face that risk alone. Secondly, a joint venture becomes the appropriate move when a combination of resources and capabilities result in the business becoming a strong market contender. Finally, it is an ideal way to wet the feet, so to speak, in the foreign market. However, these common joint venture approaches are not simple ones and force a business to consider some serious implications and the effects they will have on the business. These deals require the appropriate application of strategic alliances. The objective of a strategic alliance is to establish cooperative relationships with other businesses that complements and adds to a business' established business initiatives and competitive strengths. Hence, a strategic alliance is far more than normal company to company interactions. It is better described as being just shy of a merger or full partnership, which could prove complicated. Common examples of strategic alliance being pursued to initiate joint ventures include joint research efforts, technology sharing, joint use of production facilities; joint marketing of both business' products; or joining forces to do mass production and assembly. When considering the effectiveness of a potential joint business venture, a strategic fit is a must. A strategic fit, generally, offers a business one or more competitive advantages. Strategic fits offer a business cost or saving opportunities that allow for the sharing of resources or the combination of activities. Some common strategic fits are technology fits, operating fits, distribution and customer related fits, and managerial fits. Briefly, different businesses have different technologies; so that when they combine, it creates a competitive advantage for both businesses. This is a technology fit. An operating fit is establishing a competitive advantage by the combination of each business' operating skills and capabilities. The same basic concept applies to the distribution and customer related fit and the managerial fit.