Sony Ericsson joint venture

One of the terms covered in the eighth chapter of the book “Collaboration Strategies” is Joint Venture. After reading some literature about this topic I was able to update myself with it and find that it is a very common business procedure that is being used for at least 30 years.
I good example of this type of alliance can be found on this article that talks about the situation between Sony and Ericsson who decided to Joint Venture creating Sony Ericsson to move into the Smartphone market. There were rumors that Sony may consider buying out Ericsson's stake in the joint venture, which has in recent years struggled with a sharp drop in market share and revenue.
This model differs from the Commercial Society, for the fact that both companies involved in a Joint Venture do not lose their legal status. These partnerships may well be dissolved soon after the completion of the project. Many companies use this tool, for example, market penetration, to join their quality or develop new technology.
It was interesting reading this article in the way it illustrate how big companies implements this business strategy and sometimes especially as a costumer it is hard for us to identify the benefits of it (cost, accessibility).

The link:
http://www.totaltele.com/view.aspx?ID=458753