Explore BrainMass
Share

Explore BrainMass

    This post addresses choosing a joint venture partner.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A US inventor has developed and patented a new running shoe that can increase a runner's speed substantially.

    He got two proposals from two different companies who would like to form a joint venture with him. One company is a French sportswear giant which has a marketing and distribution system in every major city in Western Europe and massive capital resources. Another company is a privatized Hungarian firm that can offer substantially lower production costs.

    Which company should he choose as a joint venture partner and why?

    © BrainMass Inc. brainmass.com October 10, 2019, 2:59 am ad1c9bdddf
    https://brainmass.com/business/business-law/post-addresses-choosing-joint-venture-partner-402851

    Solution Preview

    Which company should he choose as a joint venture partner and why?

    He should partner with the sportswear giant for several reasons. Let's look at the pros and cons of each choice.

    Sportswear giant:

    This company already has a marketing and distribution system in every major city in Western Europe.
    - This indicates that the company is well-advertised, and therefore already well-known with an established name.
    - This also indicates that the product is getting out through an established, refined distribution system. The sportswear ...

    Solution Summary

    The solution provides a detailed discussion determining which company a US inventor that develops a new running shoe should choose.

    $2.19