This post addresses choosing a joint venture partner.
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?
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.
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