What are the relative advantages and disadvantages of joint ventures compared to other types of strategic...
What are the relative advantages and disadvantages of joint ventures compared to other types of strategic alliances?
Homework Answers
Joint ventures helps to combine resources and expertise of two industries
Advantages:
-Both parties shares the responsibilities
-Capacity is increased
-Easy access to more resources, specialized staff and latest technologies
-Good learning ground
Disadvantages:
- If the objectives for two parties are different it may cause issues in long run
- Clash of culture and management styles
- It is possible that one partner may not give 100% and can cause damage to the project as equal involvement is necessary from both the parties
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