Joint Ventures Reduce the Risk of Major Capital Investments
Harvard Business Review
APRIL 6, 2016
Driven by economies of scale, container ship size has been increasing for decades, with the largest ships now costing roughly $200 million. Building a large-scale biopharmaceutical facility requires up to $500 million. Model 1: Virtual operator. This all presents CEOs with a tough dilemma. Model 2: Asset capacity pooling.
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