Business to Business Marketing: Question 1:What are the other alternatives that Acme could look at that would create a working relationship between Southern Technologies and Acme? Acme could look at many other alternatives that will help in the better working relationship between Southern Technologies and Acne. One of them is joint venture. Joint venture is the independent partnership of different organizations and companies. Joint venture can even be within individuals, the only condition for joint venture is the formal agreement between the parties for joint venture to work in together for a particular project within a specified taxonomic group or particular region.
It is a planned coalition among two or more entities to appoint in a particular plan or undertaking. Joint venture is almost like a partnership but a little difference is that partnership but they have significant differences in the implementations for the parties that are involved. Partnership refers to a long term relationship or collaboration between two parties but joint ventures are for a specified project or a business unit. Moreover, a joint venture has a particular term or life span, whereas a partnership is often for an undefined term.
So getting into partnership at once is not known to be very helpful, as there is no idea that how the collaboration will actually work, so it is somewhat risky. The joint venture carries out a single or limited number of projects so reveal to the companies how there collaboration actually works. In a joint venture both the companies share a specific percentage of expenses and revenues as according to the percentage of investment they have made. It would be beneficial for Acme to do joint venture with Southern Technologies for any of the innovative projects.
The Southern Technologies and Acne can jointly provide the best facilities for internet services and other wireless services if they both combine their best skills in a project. The joint venture is thought to be a very good option always. The benefit will go to both Southern Technologies and Acne for the joint venture, as they both are doing their best in their respective fields, and a combination of those can introduce them in the market with a new fame.
The new developed project can not only enhance their business to business clients but can give them popularity among the public as well. As both the businesses have very strong skills and potentials and their growth rate is well, and the both have innovative ideas for their projects and are known for providing best products. Their joint venture can give them more resources for the projects, as well as greater capacity for dong a work, technical expertise will be increased, and they could enter into the other market, (that of the coalition partner) and hence greater access to new markets and distribution channels is made possible. There are a lot of good quality business and accounting motives for Acme to participate in a Joint Venture.
Collaborating with a business that has harmonizing aptitudes as well as possessions, as instance distribution channels, finance, or technology, has always enjoyed a great importance in a business. And these are the factors that Acme can easily found in Southern Technologies. Even if the pundit’s claim come true in the coming 4, 5 years, the ventures done with a well reputed company would make the high profile of Acme, though Acme itself is a popular company and pioneer in its products, still if in four or five years, Acme happens to come across any crises, the joint venture done with the other company would be proven as helpful to it, as by entering into the other markets without any difficulty, and the projects.
The company will not be novel in those projects and the markets, as it would have been introduced to other market through its joint venture with Southern Technologies.