Joint venture paper Research Example | Topics and Well Written Essays - 2000 words

Joint venture - Research Paper Example One of the benefits of forming a joint venture therefore is to gain access to the new markets as two entities; one foreign and one domestic and as such foreign entity often bring in new technologies which can benefit the domestic entities due to technology transfer. In US, Joint ventures are mostly regulated by Partnership laws, Contract Act as well as commercial transaction laws. In order to successfully formulate a joint venture, it is really important to consider due diligence, business plan as well as the allocation of the income must be decided before formation of the joint venture contract. This report will present an analysis of the joint venture between NIKE and Adidas, the business potential and the international aspects of NIKE as well as performing a due diligence of the potential joint venture between the two. 1. Nike own and operate various retail stores, ecommerce, independent distributors as well as franchisers across the United States and World. Nike has one of the unique business models in place where it manufactures its products through its contract centers located across the world. This provides NIKE necessary cost advantage over its competitors. 2. Nike manufactures and sells branded footwear, apparel as well as equipment and different accessories. This range includes various brands offered across the world either supplied locally or through franchising. 3. Make its supply chain more competitive as well as efficient through strong operational discipline. NIKE’s supply chain is truly a global supply chain due to the fact that it involves different stakeholders at different points in the supply chain. Besides, these stakeholders are spread across the world. 4. Achieving strong cost advantage through adoptive lean manufacturing philosophy. NIKE has adapted a very unique manufacturing philosophy