Helen Keller once quoted, “Alone we can do so little; together we can do so much”. Modern-day business strategies make use of collaboration and joint ventures to expand their business and grow at an unbelievable pace. Apart from Joint Ventures, there are 6 more approaches to enter the foreign market. They are eCommerce, licensing, new foreign office, distributors, acquisition and strategic alliances. We will look at International Joint Ventures in today’s blog and what are their benefits. Supplier4Buyer is a B2B online marketplace which is expanding their business through joint venture. Let us see how.
When you as an individual brand or an organization join hands with another firm or business for a specific task or a project then it is known as a Joint Venture. Joint Ventures means sharing your resources, responsibilities, profits, losses and budgets to accomplish a task. Most of the retailers and manufacturers in India are using JV for the purpose of expanding business in the international market.
International Joint Venture of Supplier4Buyer
A company that wants to extend its distribution network to new countries will benefit from a JV arrangement to sell goods to a local business, taking advantage of an already established distribution network. This is exactly what Supplier4Buyer is focussing on. A detailed account of the same is given below.
- Supplier4Buyer is the top B2B portal in India having verified suppliers connecting you to the huge marketplace which involves industries like packaging, handicraft, textile, corporate gifting, and machinery. It is looking forward to collaborating with foreign organizations and helping them connect with the vast Indian marketplace for buying and selling goods.
- The outburst of Covid19 is giving a hard time to humankind. Survival has become almost impossible for those who rely on daily wages. In these situations, businesses are also affected. International JV comes as a solution to make headway in such circumstances.
- The idea behind joint ventures revolves around an elementary story of ‘connect and support’. For instance, if the verified suppliers of Supplier4Buyer are not able to get sufficient buyers, then buyers from the international market will be definitely available to purchase because of the joint venture and vice-versa.
- With over 12m+ buyers and suppliers on board, national and international organizations get access to larger marketplaces with brand coverage, instant connection & digital user experience.
The biggest benefit of a joint venture is international exposure. B2B portals can get an added advantage of expanding it online. Three major reasons why you should consider forming a Joint Venture are given below:
1. Combined Resources
A joint venture could take advantage of both corporations’ collective resources to achieve the venture’s target. One firm may have a well-established production process, while the other may have stronger distribution channels. Foreigners are also restricted from entering some countries, making a joint venture with local manufacturing industries is almost the only way to do business in the region.
Two parties are leveraging their resources for a common cause. These can also include experts or professionals from a particular domain, share of skill sets and financial support.
2. Revenue Growth
Both companies in the Joint Venture will leverage their output at a lower per-unit cost than they could individually by using economies of scale. This is especially true when it comes to technological advancements that are expensive to introduce. Other cost benefits that can be achieved as a result of a JV include the sharing of ads and production costs. The business to business portals has also experienced larger economies of sale.
A joint venture between two businesses or parties may have different histories, skill sets, and expertise. Each business may benefit from the other’s experience and talent within their company when they form a joint venture. A joint Venture might lead to the production of new products in new geographic locations using the expertise of two corporations.
Supplier4Buyer is associating with the international market and providing help for small, mid-sized and big business organizations. Join them now.