joint-venture-formation

Vocabulary Word

Definition

'Joint venture formation' is like two businesses teaming up to create a new business or project. They share the costs, risks, and benefits. An example could be two tech companies creating a new app together.

Examples in Different Contexts

In Market Expansion, 'joint venture formation' is often pursued as a strategy to enter new markets or sectors by partnering with local firms. A market analyst might explain, 'The joint venture formation with a local partner provides us with essential insights into consumer behavior and regulatory requirements in the new market.'

Practice Scenarios

Tech

Scenario:

Transformative technologies like AI could exponentially grow our portfolio. Nevertheless, it's clear we need more resources for it.

Response:

I agree. A joint-venture-formation with a tech company specializing in AI could provide the necessary resources for success.

Business

Scenario:

This market could be a profitable one for us. However, establishing ourselves there could be quite challenging because of local regulations.

Response:

Perhaps a joint-venture-formation with a local company could solve those issues and facilitate our entry into that market.