What Is A Joint Venture & Strategic Alliance?

In a joint venture, two or more companies combine certain assets and work toward jointly achieving a business objective. Usually the time period of this combination is defined and limited in duration. This venture is then formally created as a business entity such as a separate corporation or partnership.
Strategic alliances are less formal associations between companies compared with joint ventures. In a joint venture, a separate entity is often created, whereas in a strategic alliance the agreement and the relationship are less formal.
Overall, if the entrepreneur is able to work alongside their business partner, joint ventures and strategic alliances offer a way to leverage the comparative advantage of each business in order to accelerate the growth of each business. By sharing core competencies, businesses can take the next step towards achieving their growth objectives.
There are many questions that will be answered in this video;
- What are joint ventures?
- What are strategic alliances?
- What are the advantages of joint ventures?
- What are the advantages of strategic alliances?
- What Determines The Success Of Strategic Alliances?
- What are the shareholder wealth effects of strategic alliances & joint ventures?
- Is a vertical or horizontal joint venture more profitable?
If you have any other questions, please comment below. If you enjoyed the video and found it helpful, please like and subscribe to FinanceKid for more videos soon!
For those who may be interested in finance and investing, I suggest you check out my Seeking Alpha profile where I write about the market and different investment opportunities. I conduct a full analysis on companies and countries while also commenting on relevant news stories.
seekingalpha.com/author/robert...

[@chrismulindwa8074]

Thank you very much, this video has been very helpful. I was doing some research on getting into Joint Ventures but thanks to what I have learnt in your video, a Strategic Alliance will be a better form of partnership for what we are looking at achieving. Thank you very much.

[@evagblee9143]

Your presentation on JV & SA as I abbreviate, was, and is loaded with explicit and detailed informationss that enhanced my understanding of the topic under-review.

[@lilmoesk899]

thanks man. enjoying your videos. keep it up!

[@michaborski7383]

very profesional, need it, thank you !!

[@mmusa6486]

Thank you very much sir, I really learnt alot from your video

[@piyushisharman3113]

Great video!

[@debymorrow5831]

If under contract to be acquired, can the 'target' engage in independent long term contracts (i.e., 30 years) without involving the acquiring entity. Thanks.

[@SantiagoLeungPrime]

A small typo of the bold phrase at 3:00, think it should be competitve advantage right?

[@salvadorhs6080]

Hi FinanceKid, do you have the references of the studies ?

[@moviedude22]

do you ave anything relating to what a Sister company is?

[@sassobello]

Hi Robert, thank you for uploading this video. Great help. Wanted to see if you ever take calls on this subject. I’m in the middle of having to make a decision of working with a large company. It’s a very gut wrenching moment. Let me know if your ever up with me picking your Brian. Again thank you for the help in this video. :)

[@financekid3163]

Thanks for watching, I would be happy to offer any help. Best thing to do is email me first and let me know what questions you have. You can reach me at [e-mail] Looking forward to your email. Happy New Year!

[@minidas244]

sassobello

[@immypretty9170]

Explain the Nemo day rule and it's exceptions

[@darrenharney2]

This was a really informative video for me. I have been considering selling my business, but maybe I would be better to form a strategic alliance. I could be a reciprocal contracts focusing on each company's core competencies.

[@financekid3163]

Yes, if you can find a partner to advance your technology or provide the funds needed to scale to the next level, it may be worthwhile to partner first with a larger group and wait a few years before you sell. In some instances, your JV partner ultimately becomes the best buyer for your business. Good luck!

[@darrenharney2]

Thanks for the reply, look me up Savonnette Montreal. I watched your bio video nice.

[@ivalinapasse2469]

No Venture No Trust I have my own Business Successful with Trust worthy People or Partners

[@jenyrajakumar8137]

Explain the cost and risk of strategic alliances

[@TheDsantander]

competitive advantage, not comparative (it is for countries)