Across our economy, we find evidence of successful joint ventures. Look in the newspaper. Check it out on the news. Find it on billboards and advertisements. The most popular JVs have had a great influence on our society, our economy, as well as technological developments.
In the United States, and in the most advanced countries in the world where the government has great influence and regulation on mergers and acquisitions, companies find that joint ventures are an excellent way to join forces without strict government oversight. Below are some of the joint venture examples and the results you see almost every day.
Sony and Ericsson joint venture
Japanese electronics giant Sony has been a leading manufacturer of consumer electronics, including audio, video, and communications, for decades. Along with its established manufacturing ubiquity, Sony has had global marketing dominance on all of its products, including motion pictures and music recordings. With all their experience in marketing, they still needed an expert in innovative technology to develop a marketing relationship.
Enter the Swedish tech expert, Ericsson. Ericsson specialized in developing innovative telecommunications equipment for mobile networks. In 2001, Sony and Ericsson joined in a 50-50 joint venture now known worldwide as Sony Ericsson to develop and establish their innovative brand as the most attractive and dominant in the mobile phone industry. Their successful joint venture has resulted in the development, production and marketing of some of the best handheld mobile phones available today.
Verizon and Vodafone joint ventures
And continuing with the mobile communications industry, who hasn’t seen the nice guy asking, “Can you hear me now?” for Verizon Wireless? Verizon Communications was a leading provider of broadband and other wireless communications products. In 2000, they wanted to break into the mobile wireless network provider industry and found a partner with the European wireless giant, Vodafone.
Vodafone was the world’s leading international mobile communications group, providing wireless services to hundreds of millions of customers. They were able to access the North American market with a strategic joint venture with Verizon Communications. By combining Verizon’s cell phone, PCS and pager assets with Vodafone’s wireless communications technology and marketing, they have now become the nation’s most reliable and largest wireless network.
Joint venture between Mazda and Ford
Ford Motor Company had an available parts foundry facility located in Flat Rock, Michigan. Mazda saw an opportunity to purchase and rebuild the plant to begin producing a line of cars. After Mazda had success with its MX-6 models and produced the Ford Probe, Ford partnered with Mazda to form a joint venture, AutoAlliance International in 1992. Since then, they have produced some of the leading car models, including the Ford Cougar, Ford Mustang and Mazda 6 lineup.
These are just a few examples of the most visible and popular joint ventures in North America and the world. Although these joint ventures are large-scale launching into international business and marketing, even small business owners can learn from them. The combination of capital, technology, and marketing know-how are just a few of the ways that business owners and entrepreneurs can create joint ventures. Using creativity and business experience, there is virtually no limit to the way two or more companies can combine to form a joint venture.
Copyright (c) 2009 Christian Fea