Gentlemen,
Joint venture and acquisition was once a popular business model
from the 90s to mid 200.., but today, people see it failure due to
differentiation in views and decison making that actually delay
project and created more politics within the organisation
structure,
One of it benefit is economic of scale, meaning sharing of calls
centre, admin etc etc all come under one roof, and being
competitors, now become joint venture, it take away competition
within and can become the market price taker, meaning they can
command the price instead of having to slash here and there to
compete each other.
And naturally, when you joined, you become big, so the smaller
ones will start to lower their prices to compete with you. And in a
long run, you lost competition and yet have to pay out a high wage
bills to those good for nothing executives who command higher wages
due to operating a bigger organisation.
So, after the mid 200.., the model of today business changed,
its is more of a global sense, and diversification of business.
Global is because of the liberation of the nets whereby business
become borderless, eg you can buy a cam anywhere in the world with
a click and paypal.
Diversification is more of doing business out of it core
business, meaning car rental company venture into taxis business,
gas company venture into taxis business, taxi companies venture
into food or logistic business, such venture allow business to
expand and learn more, therefore it is no more a venture of
same business that created internal politic and stagnation
progression.
You can find many older model of business joint ventured and now
going separate way or in trouble, Euro is a typically a failure, so
is sony ericssion and so on.
So let not go too far, take TD, it is hard to find a click
between a relief and hirer, what joint venture do you want to talk
further??