'Joint Ventures can be extremely valuable and chances of their failure can be reduced to a great extent, if strategically formed' Comment on important strategies of joint venture.

Joint ventures can be very effective for growth and success of a business. Their chances for failure can be reduced to a great extent if the following strategies are formed: (a) Joint Venture Partner should never be weak or untrustworthy partner, as it would definitely lead to failure of the joint venture. On the other hand, JV with strong and trustworthy partner would generate enormous benefits for both the partners and Joint Venture entity. (b) Development of Strong Joint Venture Relationship: Partners must strive to develop joint venture relationships that are easy to maintain, financially profitable, intellectually rewarding, and long-lasting. After a necessary period of negotiation and implementation, the Joint Venture relationship should grow well and quickly and painlessly. (c) Equal Contribution: Joint Venture Partners must make sure that all the partners have equal contribution in the Joint Venture entity in terms of skills, intellectual resources, marketing resources, capital, and so on. Unbalanced or unequal contributions are never healthy for the success of a Joint Venture entity. (d) Written Agreement: The agreement between two or more parties always be written and must clearly define all the terms, relates to rights and responsibilities of each partner. The language of the agreement must be simple and there should be no ambiguity, also there should be no clashing of interest. (e) Well defined business model: The firms in a JV must clearly define the nature of the new venture including the proposition to the customer, the channels and relationship management, the value chain, the structure and roles, investments, income, costs and payments, success factors and the timetable for delivery. A well-defined business model provides a base for the legal and financial frameworks. (f) Establishment of Exit Routes: JV Partners much establish clear protocols in the beginning itself for amending or unwinding the relation if it fails to meet the expectations or in case there arises any dispute.