Question

If joint ventures are so beneficial to the firms involved, why would a firm want to do anything important on its own?

Answer 1

If joint ventures are so beneficial to the firms involved, why would a firm want to do anything important on its own?

• Joint ventures perform a task together with the combined workforce and leadership
• Inspite of being bound by a JV, each firm also has its own individual identity
• Both firms are aware of the fact that the JV might end anytime
• So both firms want to do anything important on its own so as to benefit in the future when they are running independently
• During a JV, both firms have their individual customer base, hence to increase the individual brand image both firms want to do anything important on its own