Top 5 successful joint venture in the world
A joint venture (JV) is a business entity created by two or more individuals, corporations, or governments. The purpose of this collaboration is to effectively combine wealth, resources and expertise to operate one business body with a common interest, collective management as well as profit and loss sharing. Here are 5 successful joint ventures that are making good money.
It is an essential step for a joint venture to have a contract agreement, specific and time-bound objectives, a unique status of the body, to have a proprietary interest, similar objectives, sharing of profit/loss, and management. With increasing globalization, expansion in business horizons and generally receding economies in the atmosphere of extreme aggressive markets, it is an opportunity for many entities to join hands for their own interest.
1 Siemens AG and Nokia Corp Joint Venture
In 2006, Germany based Siemens AG and Finland based Nokia Corp established a joint venture titled Nokia Siemens Networks U.S, and is headquartered at Espoo, Greater Helsinki, Finland. The development of this joint venture was suggested by the collaboration of firms like Alcatel with Lucent. The need of collaboration also arose after the increasing tendency in the low-cost Chinese executers like Huawei Technologies Co. Ltd. The collaboration was announced on June 19, 2006, while the company was officially launched in February, 2007 in Barcelona at the 3GSM World Congress.
2 Cadbury Schweppes PLC and Carlyle Group
Just behind Mars, Cadbury Schweppes plc is the second largest confectionery producer in world. From1969 till its demerger in 2008, the company was officially called Cadbury Schweppes PLC. Soon after merger, the chief confectionery business separated from its U.S. beverage unit, namely, Dr. Pepper Snapple Group. The company is currently headquartered in Uxbridge, London and successfully operates in 50 countries. With a target to acquire 2 soft drink bottlers called Beverage America and Select Beverages for $724 million, the company collaborated with an investment company, the Carlyle Group. It also needed a different distribution network, and the association of these two firms arose due to the increasing competition from Coca Cola Co. and Pepsi Co., Inc.
3 Microsoft and General Electric
Back in December, 2011, Microsoft Corporation and General Electric established a joint venture which is basically a health IT organization. Their universal objective was to improve patient’s experience and the business of health and wellness through providing the healthcare setups with required system-wide data and intelligence. The joint venture is known as Caradigm and aims at bringing together technology and clinical applications to convert it into intelligence which is easily used by care providers.
4 The Hisun-Pfizer
World’s biggest drug company, Pfizer, and a China based pharmaceutical company, Zhejiang Hisun, collaborated in Hang Zhou, China. The company is officially known as the Hisun-Pfizer joint venture and has a registered capital of U.S. $250 million. Hisun holds 51% while Pfizer own 49% of the stake in the company. Factories of Hisun-Pfizer joint venture are situated in Fuyang, while its operations are held in Shanghai and Hang Zhou. The urgency of collaboration was prompted by the sudden decline in sales of Pfizer due to the termination of its various products.
5 The Dow Corning
While Dow Chemical Company is amongst the top three chemical manufacturers in the world, Corning Incorporated is an acclaimed American manufacturer of glass. Aproblem faced by the airlines in 1942 brought the two firms closer in order to solve the problem. The existence of moisture and the Corona discharge was causing a severe problem for the aircraft to fly at higher altitudes. The corona discharge also resulted in the production of hazardous products like ozone. Eventually in 1943, both the firms formed an equally owned joint venture titled ‘Dow Corning’. The company is headquartered in Michigan, USA.