FOCUS 8


INNOVATIVE JOINT


VENTURES ARE GENUINELY CHANGING THE BUSINESS LANDSCAPE.


Q A


Have you seen an increase in joint venture activity recently?


“The pace of growth in joint ventures has been phenomenal: in 1980 they accounted for just 2% of global corporate revenue; today that number is over 35% – and growing.”


Q A


Why are joint ventures so popular?


“The main drivers are desire for growth combined with capital constraints. When companies fi nd that growth in their own markets has stagnated, they look for ways to access faster- growing markets, particularly in China and the


Q A


other BRIC nations. A joint venture is often the only permitted route into emerging markets and may be a faster, less capital-intensive alternative. More recently, though, we have seen a trend towards more game-changing joint ventures.”


‘Game changing’?


“What we mean is when two quite different parties come together to create a win-win. Recent examples include a joint venture between an OEM and a supplier to develop new technology and between two OEMs looking to share capacity as a prelude to plant closures. Such innovative joint ventures are genuinely changing the business landscape.”


© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.


BACK TO CONTENTS


JOINT VENTURES


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35