Joint Ventures Reduce the Risk of Major Capital Investments
APRIL 6, 2016
If a company does not invest, it faces several problems: lagging behind competitors in terms of production technology; being unable to meet customer needs for better-performing or cheaper products; not having facilities and equipment ready by the time demand picks up again; or failing to comply with stricter regulatory requirements for safety or emissions. The model can be a win-win as long as the two companies address different customer segments. Benefits and risks of co-opetition.