In the Economic climate, a firm or business may choose to grow in order to achieve a higher level of profit or acquire themselves at a higher position in that market. A specific example of how to do this is a joint venture. A company can choose to merge together with another in order to exploit other markets, or they can ‘join’ together to pursue a common goal. This is not the same as a merge (an example being the Cadbury/Kraft merge mentioned in my previous post), but merely a collaborative work in reaching a mutually strategic target. Firms may come together for joint-research projects. An example of this is with Google and NASA in recent years.
NASA Ames Research Centre, located in California’s Silicon Valley, and Google inc. decided to collaborate on numerous technology focused, R&D projects that will pair some of the world’s most influential technology. The companies signed an MOU that planned operations for large-scale data management, widely distributed computing, bio-info-nano convergence, and a development of the entrepreneurial space industry. It also highlights plans for Google to develop up to 1 million square feet within the NASA Research Park at Moffett Field.
NASA Ames Centre Director G. Scott Hubbard believes that the partnership ‘Presents an enormous range of potential benefits to the space program. Just a few examples are new sensors and materials from collaborations on bio-info-nano convergence, improved analysis of engineering problems, as well as Earth, life and space science discoveries from supercomputing and data mining, and bringing entrepreneurs into the space program.’ It is clear that the joint venture will benefit both companies in different ways, but G. Scott Hubbard believes that “While our joint efforts will benefit both organizations, the real winner will be the American public.”.
The companies may have chosen to do this joint venture because “Google and NASA share a common desire to bring a universe of information to people around the world,” said Eric Schmidt, Google chief executive officer. “Imagine having a wide selection of images from the Apollo space mission at your fingertips whenever you want it. That’s just one small example of how this collaboration could help broaden technology’s role in making the world a better place.” He believed that while it would benefit both companies in relevance to profits and an expansion in their individual markets, it would also benefit the consumers who use their products on a day-to-day basis.