Establish a Joint Venture Flashcards
What is a joint venture?
-established between companies at diff stages in supply chain
Where are JVs common?
-particularly price sensitive markets, eg UK
-companies increasingly looking to save costs
What is the advantage of JVs?
-gives parties greater control over diff stages in supply chain
-greater profitability= costs shared and no intermediary costs
What does a JV need to be successful?
-companies similar size or more of a takeover
-contracted agreements need to be carefully agreed and documented to ensure each party knows their responsibilities and obligations
Give an example of a joint venture
-Metzendorff distributer, and Champagne Bollinger and the Fladgate Partnership (port)
-2 businesses not direct competitors, and other companies represented by Metzendorff carefully chosen so don’t overlap
What is another type of joint venture?
-producers joining force with distributers/retailers to make new wine brands
-eg 2007- Buckingham Schnek and wms Herve and Diane Joyaux Fabre created Argentinian wine brans- Vinalba