Advantages And Disadvantages Of Co-Marketing

Decent Essays

cases, co-marketing is not enough to enter a foreign market. This is why expansion in joint ventures are more successful than co-marketing agreement.
A successful joint venture must increase the value of its individual partners. Additionally, if the joint venture is highly reliant on one of the partners and mostly building value in that partner, there is going to be an opportunity for the others to connect their equity in the joint venture that is the key partner of the venture. This kind of events cannot take place in co-marketing so it makes joint venture beneficial for all partners that are tied to the joint venture.
There are also disadvantages of joint ventures against co-marketing
One of the key characteristics of the joint venture is …show more content…

For Heart, the ‘digestibility ‘of the targeted assets, itself a function of the size and organizational structure of the firm that owns them, is the crucial determinant of the choice between joint ventures and acquisitions (Hennart S. , 1997). Digestibility is also a determinant of the choice that is made when firms are not sure whether to choose joint ventures or acquisitions. while Balakrishnan and Koza are concerned with transaction costs in the market for firms, Heart's focus is on the costs of integrating the target firm’s labor force (what has been called the post-acquisition integration problem). (Hennart S. , 1997)The understanding of the choice between joint venture and acquisition allows us to understand how the logical decision can be made.
There are 4 types of exact reasons why to choose joint ventures over acquisitions, invisibilities, management costs, difficulties in assessing the value of the target firm and governmental and institutional barriers according to Hebbart and

Get Access