When talking about increasing your revenues via partnership, there are plenty of ways to do so in our 10 successful joint ventures examples (international and domestic).
If you are wondering what is a joint venture, The Balance defines it as “a cooperative enterprise entered into by two or more business entities for the purpose of a specific project or other business activity.” In plain English, two or more companies join in to earn money by investing in a mutual project of some sorts. For instance, in 2011 Ford and Toyota worked together to produce hybrid trucks. This also would be an example of an international cooperation. Should the companies originate from the same country, that is called a domestic joint venture. If you are thinking of creating one, you must be extremely careful and meticulous when constructing and signing the joint venture agreement, a document that defines the conditions of the alliance and can often be the reason for your success or your doom.
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Now would be a good time to discuss the international joint venture advantages and disadvantages. As is the case with any joint venture, the main advantage would be that you are entering a business project while still maintaining the rest of your business. Basically, the risk is lower since your immediate business isn’t closely connected to the new project, and you have a partner or two in the new venture. Whatever happens, you are splitting the profits and costs. Obviously, splitting the profits is inevitable, but sharing the prospective downsides cam be a plus. Huffington Post also offers some more advice on joint venture pros and cons. A successful joint venture can even provide you with access to new geographic markets or another company’s database. What’s yours is mine, right? Generally speaking, joint ventures are easy to set up and there is an option of using or developing new technologies. As for joint venture cons, the list is extensive as well. You could be working with a partner that is going to slow you down by running into conflicts and different management styles, or other unspecified objectives – all of these are possible negative scenarios.
However, there won’t be such scenarios in our list, because these are all successful and profitable collaborations. In order to provide you with the very best examples, we investigated different sources: The Telegraph, Christian Fea, Infomory, Reuters, Indian Oil Skytanking, Business Standard and Sahara Petrochemicals. The ordinal number on our list doesn’t really matter, but what matters is that all of the joint ventures, or JVs, have proved to be lucrative to both sides of the agreement, regardless of whether they exist now or the companies have parted. Speaking of which, you can take a look at the 5 Most Successful Joint Ventures In America for more examples.
Therefore, let us take a look at 10 successful joint ventures examples (international and domestic) and maybe you’ll get some ideas for establishing one yourself, too.
10. The Saudi Butanol Company (SABUCO)
Here is an example of a domestic JV from the Middle East. Saudi Butanol Company (SABUCO) was established in May 2013 as a mixed limited liability company between SAAC (Saudi Arabian Amiantit Company), Saudi Kayan Co. and Sadara Chemicals Co. Each of them had an equal part of 33.3% of ownership, and the capital of SABUCO is around 130 million dollars. Basically, the company was founded to manage and operate the n-Butanol plant and to distribute it evenly among the partners. So what is the big deal here? Well, just that it is the world’s largest butanol plant, as said by Mubasher. The profit is probably as such, but it is kept secret. Knowing the starting capital and that building the plant cost around $533 million, we can only imagine the revenues.
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9. IHS Holding and MTN Nigeria
We are continuing our list of successful joint ventures examples (international and domestic) with IHS, a tower building company, while MTN is a telecommunication company. Tower sharing is something that has become quite common in Africa. Good coverage of a mobile network is what brings telecommunication companies money, and in this case in 2014 the venture committed to $500 million for tower upgrades in order to ensure profit for both partners.
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8. Tesltra and Telkom Indonesia
This is an example of an international JV. Telkom Indonesia, the country’s largest telecommunications provider, decided to start a joint venture with Australia’s Telstra. The Australian reports Telkom has 51% participation, while Telstra’s part is 49%.
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7. Victus Networks
Victus Networks is a company created by two domestic rivals, Vodafone Greece and Wind Hellas, and it has been designed to bring money to both companies. Victus Networks employs more than 250 engineering staff from Vodafone, while Wind Hellas was going to invest over 150 million euros in construction and equipment.
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6. Toyota and Mazda
You may still linger on the old Ford and Mazda joint venture which produced several types of vehicles, but the latest news is that Toyota and Mazda are forming a JV. Reuters announces these two rivals will combine their efforts and build a $1.6 billion assembly plant in the U.S. Currently, Toyota is earning praise from president Trump for investing into the American market.
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5. Chery Jaguar Land Rover Automotive Company
This JV is one of the successful joint ventures examples (international and domestic). Perhaps you’re wondering how it happened that Jaguar, originally from the U.K, and Chery Automobile, a Chinese car manufacturer, started to do business together. As the Guardian claims, China was actually in the third place of Jaguar Land Rover markets, after the U.K. and U.S. Established in 2012, Chery Jaguar Land Rover Automotive Company is now a leading company in car manufacture and is producing new models for its niche market.
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4. Indian Oil Skytanking
IndianOil Skytanking Limited (IOSL), is a joint venture company which emerged from an agreement between Indian Oil Corporation Limited (IOCL) and M/s Skytanking Holding GmbH, Germany (ST) with equal equity participation. It has existed since 2006 and it is in charge of jet fuel. Practically, IOSL refuels one aircraft every two minutes.
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3. Tata Starbucks Private Ltd
Starbucks and Tata Global Beverages is an example of an Indian company entering a joint venture with foreign companies. Starbucks decided to offer coffee from India on its drinks list, while at the same time introducing its brand of tea to the Indian market. Tata Starbucks Private Ltd opened its first store in 2012, and now has 84 outlets, which is a record expansion in Starbucks’ 45-year history. Let’s se what’s next on our successful joint ventures examples (international and domestic) list.
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2. Verizon and Vodafone
This is an example of a venture that we could say was good while it lasted, and a fine example of how having a venture might come in handy when you need some cash. Verizon Communications teamed up with European wireless network giant Vodafone in 2000. They had a huge impact on North American market, but he JV ended in 2014 when Verizon offered to buy off its share for $130 billion. Even though the venture was highly profitable, at that time it suited Vodafone to sell its share and use the income for solving the issues within its own company.
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1. Sony Ericsson
Depending on how old you are, you might remember the original entities of our last member of the 10 successful joint ventures examples (international and domestic) list. If you recall, Ericsson was a Swedish technology expert specializing in mobile networks. Sony and Ericsson decided to start a successful joint venture in 2001 with 50-50 share in profits. The merger was so successful that hardly anyone remembered these are two different companies. However, nothing lasts forever in the business world, and The Guardian reports that the alliance ended in 2011 with Sony buying off Ericsson’s share for over one billion dollars because it wanted to improve the overall offer to the consumers.
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