Company lacks some important resources

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Reference no: EM1399691

A joint venture is a gorgeous way for a company to enter a new industry when: The pool of attractive acquisition applicants in the target industry is relatively small.
It wants better access to economies of scope in order to be cost-competitive.
The industry is growing slowly as well as adding too much capacity too soon could create oversupply conditions.
The firm has no prior experience with diversification as well as the industry is on the verge of explosive growth.
The opportunity is too risky or complex for a company to follow alone or when a company lacks some important resources or competencies and needs a partner to supply them

Reference no: EM1399691

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