Identify and analyze an actual global joint venture that has

Identify and analyze an actual global joint venture that has occurred over the past few years?

Solution

A global joint venture occurs when two businesses based in two or more countries form a partnership.

An example of an actual global joint venture is that between Starbucks and Tata Global Beverages. This joint venture was formed in the year 2012. Both Starbucks and Tata beverages have an equal stake in the venture. The venture owns and operates Starbucks cafes in India.

The joint venture has resulted in creation of synergies. Starbucks brings unique retail expertise that it has in this business worldwide. Tata brings in local expertise and know how.

The joint venture is tasting reasonable success in India. The venture currently owns and operates 76 cafes accross 7 cities in India. It has managed to create a premium equity for its offerings and thus charge a higher price from competition like Barista and Coffee Cafe Day.