What Are Some Of The Basic Types Of Joint Venture PartnershipWhat Are Some Of The Basic Types Of Joint Venture Partnership

The following are the basic types of Joint venture partnership:

• Complementary technology joint ventures- the partners combine their technologies to diversify their existing product or market portfolios

• Market technology joint ventures – combination of the market knowledge of one partner with the production or product know-how of the other

• Sales joint venture- the producer and a local partner cooperate in an arrangement which is a mixture of independent representation and own branch

• Concentration joint ventures- competing partners cooperate to form larger and more economical units

• Research and development joint ventures – where the aim is to create synergy by making joint use of research facilities,exploiting opportunities to specialize and standardize,combining know-how and sharing risks

• Supply joint venture where competitors with similar input needs cooperate to safeguard supplies,reduce procurement costs or prevent the entry of new competitors.

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