The second option that is available to the company for operating and entering clock & watch industry in Czech Republic pertains to joint ventures. Through a joint venture a company can share ownership of the operations with a local business.
The advantage of this is that the risks associated with operating in a new market are diminished through the expertise of the local company and shared amongst the two parties. Additionally there is also joint financial strength. The disadvantages however that can plague a joint venture pertain to the fact that the partners do not have full control of the management as it is split between the two, it may also be impossible to recover the capital and that the partners may be of different points of view down the road in terms of the strategic vision and mission of the business and its objectives.
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