Marketing
Joint Venture
A joint venture is a business agreement between two or more companies to work together on a specific project or task. Each company contributes resources, expertise, and capital to the venture, and they share the risks and rewards of the project. Joint ventures are often used in marketing to expand a company's reach or to enter new markets.
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5 Key excerpts on "Joint Venture"
eBook - ePubGuerrilla Marketing and Joint Ventures
Million Dollar Partnering Strategies for Growing Any Business in Any Economy
- Jay Conrad Levinson, Sohail Khan(Authors)
- 2020(Publication Date)
- Morgan James Publishing(Publisher)
PART THREE
M i L L i O N D O L L A R P A R T N e R i N G
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CHAPTER 9
M i l l i o n D o l l a r P a r t n e r i n g U s i n g J o i n t V e n t u r e s
The ability to leverage what you don’t own AND profit from it is pure business magic — Sohail KhanA Joint Venture (also known as a JV or strategic alliance) is an arrangement that will be of mutual benefit between two (or more) people, businesses or companies who have complementary resources or assets that can be leveraged .What do I mean by resources or assets? I mean products, services, machinery, equipment, buildings, unused capacity and a customer list (or mailing list) that can be leveraged by the owner or whoever approaches the owner with a Joint Venture proposal (covered in a later chapter).Joint Ventures are known under many names. Some refer to them as “tie-ins”, “collaborative marketing”, “strategic alliances”, “endorsement marketing”, “hidden asset marketing”, “reciprocal marketing” or, as Jay Conrad Levinson calls them, “fusion marketing”. Regardless, all these terms essentially refer to the same thing and, if you just look around, you’ll see many examples there in the world. For example, when you see a commercial for McDonald’s you almost see a pitch for Coca-Cola.The idea of the Joint Venture is as simple as: Business A agrees to include Business B’s brochure or an endorsed letter in their next mailing, either for a fee, a percentage, or if Business B agrees to do the same for them. The result is instant access to a whole new influx of customers without having to spend any money on advertising or market research to find them.A Joint Venture is a win-win situation because everybody gains and nobody loses. Joint Ventures cut through the top heavy expense of finding large numbers of customers from scratch. You don’t need to do any market research. You don’t need to buy a lot of expensive advertising. You don’t need to weed out unqualified clients. Joint Ventures drive right to the customer in one swoop. With a Joint Venture, you make someone else’s already captured customers your client’s customers. You capitalize instantly on the other’s guy’s resources, and he’s glad to let you do it because he will capitalize on yours.
eBook - ePub- Ron Forlee(Author)
- 2022(Publication Date)
- Wiley(Publisher)
CHAPTER 2 Joint Venture DEVELOPMENTSA Joint Venture (JV) is a business entity created by two or more parties characterised by shared ownership and sharing the returns and risks on a specific project. Joint Ventures are usually short‐term arrangements set up for particular projects. However, it is possible to use Joint Venture arrangements in a broader context. They are also used as flexible and clean structures to carry on a range of businesses.The term Joint Venture has no statutory definition. It describes several different legal relationships, but is not a separate legal entity. The relationship between Joint Venture parties is governed by the agreement's terms and the general law.A real estate development JV is an arrangement between two or more parties to work together and share resources to develop a property. The parties in a JV maintain their own business identity while working together to complete the project. JVs allow real estate developers with extensive development experience to work with real estate capital providers or investment funds.The role and responsibilities of each party in a Joint Venture can be assigned in whatever manner they are needed to bring a project to its successful conclusion. Profits are then shared as agreed upfront between the JV parties.The basic principle of a JV development can be demonstrated through the following example. Company A owns a potential development site suitable for an apartment block but is based in another city. Company B is an experienced developer in the city where the development site is located. Company A wants to develop the land, as the market is on an upward trend. Company A therefore forms a Joint Venture with company B. Company A provides the land and the capital; company B provides the development expertise.Reasons for a Joint Venture
There are many forms of JVs and several reasons for using this arrangement. In a real estate development context, we can break these down into three main areas: land, finance and expertise. These three resources are usually the driving force for parties seeking to form a JV.
No longer available |Learn more- (Author)
- 2012(Publication Date)
55 Strategic alliances and Joint Ventures 2 57 2.1 Business alliances: a broad concept and a blurred terminology There are many forms of inter-enterprise collaboration arrangements, and the terminology describing them is far from uniform and consistent in the specialized literature and among leading authors. This is confusing for readers who wish to understand the scope, characteri- zation and differentiation of the various ways in which business firms collaborate. In many works, terms like “Joint Ventures”, “collaborative agreements”, “partnerships”, “business alli- ances”, “strategic alliances”, or simply “alliances”, are used in a generic and interchangeable way. Some authoritative sources give certain of those terms a specific scope and a well-defined meaning, but we also see that other equally authoritative sources use the same terms with dif- ferent and sometimes rather blurred meanings. The examples below will illustrate this. (a) Doz and Hamel, in Alliance Advantage, 38 use the terms alliance and Joint Venture as substantively differentiated concepts. They elaborate at length on the distinc- tion between these two forms of inter-enterprise collaboration. Furthermore, for those authors the term alliance has a clear connotation with the notion of strate- gic alliances, which will be presented later. (b) Bamford, Gomes-Casseres and Robinson, in Mastering Alliance Strategy, 39 give the concept of alliance a rather broad and encompassing scope, covering a wide range of forms in both classic equity Joint Ventures and non-equity relationships, and including enhanced supplier agreements, contractual research collaborations, marketing affiliations, licensing agreements and multi-partner consortia.
eBook - ePubTourism Marketing
A Collaborative Approach
- Alan Fyall, Brian Garrod(Authors)
- 2004(Publication Date)
- Channel View Publications(Publisher)
et al. (2000: 567)Partnership is a dynamic relationship among diverse actors, based on mutually agreed objectives, pursued through a shared understanding of the most rational division of labor based on the respective comparative advantages of each partner. Partnership encompasses mutual influence, with a careful balance between synergy and respective autonomy, which incorporates mutual respect, equal participation in decision-making, mutual accountability, and transparency.Brinkerhoff (2002: 216) [A] long term commitment between two or more organisations for the purpose of achieving specific business objectives by maximizing the effectiveness of each of the participants. National Economic Development Council,in Naoum (2003: 73)Strategic alliance
Co-marketing alliances are a form of working partnership …. They are contractual relationships undertaken by firms whose respective products are complements in the marketplace. They are intended to amplify and/or build user awareness of benefits derived from these complementarities.Bucklin and Sengupta (1993: 32, original emphasis retained) A strategic alliance, while encompassing Joint Ventures, goes beyond the more familiar Joint Ventures to include a myriad of non-equity arrangements. Pekar and Allio (1994: 54)Strategic alliances may be defined as organizational arrangements and operating policies through which separate organizations share administrative authority and form social links through more open-ended contractual arrangements as opposed to very specific, arm's length contracts. The concept of strategic alliances is connected to organizational structure, industry positioning, and competitiveness. Strategic alliances are concerned with the issue of how to obtain resources through partnership.
eBook - ePubThe 20 Ps of Marketing
A Complete Guide to Marketing Strategy
- David Pearson(Author)
- 2013(Publication Date)
- Kogan Page(Publisher)
13Partnership
The ideal committee is one with me as the chairman, and the other two members in bed with the flu. LORD MILVERTON The secret to a successful marriage is separate bathrooms.SIR MICHAEL CAINE, INTERVIEWED ON DESERT ISLAND DISCS , DECEMBER 2009In this chapter I want to consider the role of Partnership in the marketing mix. Partnership can mean many things, not least a legal status. That is not what is intended here but rather the development of successful, long term, strategic relationships based on achieving best practice and sustainable competitive advantage. These relationships can be formed between individuals or organizations for the creation of a new enterprise.Examples of successful marketing Partnerships include the following:- A Joint Venture between two or more entities to pool their resources in bringing a new technology to market.
- A closer relationship between suppliers and their customers in bringing innovative improvements to the customers’ Products and services.
- Collaboration between two or more normally non-competing parties to solve a technological challenge and prepare for market entry.
- A consortium of organizations bidding for public funds to develop and test an innovation in the event of a market failure.
- A service provider working with a content owner to drive traffic to a website and build awareness of the content.
- Joint selling where two or more Partners share account intelligence and seek to integrate the value chain.
- A franchise where a brand owner benefits from low-cost market entry into new territories while operators can run independent businesses with proven models and brands.
Benefits of business Partnering
The benefits of business Partnering are legion and include the following:- Reduction of general costs. Business Partnering can be cheaper and more flexible than a merger or acquisition, and can be employed when a merger or acquisition is not feasible.
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