Joint ventures are primarily formed to achieve which of the following?

Joint ventures are primarily formed to enhance skills and secure supply. This type of collaboration allows two or more parties to pool their resources, expertise, and technologies in order to achieve a common goal that may be difficult to reach independently. By joining forces, companies can leverage each other's strengths, which might include technical expertise, market knowledge, or distribution networks.

In the context of supply chain management, this can be particularly beneficial as firms may seek to ensure a more stable supply of materials or products, mitigate risks, or enter new markets with the support of a partner that has established operations or knowledge in that area.

The focus on enhancing skills is critical, as partners can learn from one another, share innovative practices, and develop new capabilities that elevate their competitive ability. Securing supply through a joint venture can also help in maintaining a reliable and efficient flow of goods and services, which is essential in today’s fast-paced market environment.

While increasing market share through competition, managing production more efficiently, and reducing employee turnover are all important objectives in business, they do not encapsulate the primary reason for forming a joint venture as effectively as the ability to enhance skills and secure supply does. Joint ventures are more about strategic partnerships aimed at mutual benefit rather than just competition or