The main benefits and advantages of Alliance/Joint Ventures are:

• Provide companies with the opportunity to gain new capacity and expertise
• Allow companies to enter related businesses or new geographic markets or gain new technological knowledge
• Access to greater resources, including specialised staff and technology
• Sharing of risks with a alliance / venture partner
• Alliance/Joint ventures can be flexible. For example, a joint venture can have a limited life span and only cover part of what you do, thus limiting both your commitment and the business' exposure.
• In the era of divestiture and consolidation, JV's offer a creative way for companies to exit from non-core businesses.
• Companies can gradually separate a business from the rest of the organisation, and eventually, sell it to the other parent company. Roughly 80% of all joint ventures end in a sale by one partner to the other.