Joint Ventures - International Expansion strategies

Corporate Level Strategies

Prepared By

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Manu Melwin JoyAssistant Professor

Ilahia School of Management Studies

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

International Expansion

Joint Ventures

An equity joint venture is

a contractual, strategic

partnership between two

or more separate

business entities to

pursue a business

opportunity together.

Example of Joint Ventures

Sony-Ericsson is a joint

venture by the Japanese

consumer electronics

company Sony Corporation

and the Swedish

telecommunications

company Ericsson to make

mobile phones.

Joint Ventures

Foreign joint ventures

have much in common

with licensing. The major

difference is that in joint

ventures, the international

firm has an equity position

and a management voice

in the foreign firm.

Joint Ventures

A partnership between

host- and home-

country firms is

formed, usually

resulting in the

creation of a third firm.