The Siemens Public Communication Networks Group is therefore represented by joint ventures in almost every CEE country. While the potential gains are great, the earlier joint venture euphoria has long since given way to a more realistic view. They also provide a platform for companies like Siemens to become key players in these new markets. But this strategy can only succeed if both partners are willing to commit them selves to long-term goals, rather than seeking quick profits. Catching up in communications.
Joint ventures are a particularly demanding form of commercial cooperation.
They can only succeed if the strategic aims of the partners can be reconciled, and if an attempt is made to realize the available potential for synergy. What is more, the question of ownership of real estate in CEE countries is in many cases not clear. Therefore it is necessary to make sure both parties are protected against claims from former owners. Of course, the best possible precautions must be taken for risks of all types, for example, to protect oneself from a rival company becoming the owner of licenses contributed to the joint venture in the event the local partner company is privatized. Legal certainty and protection against expropriation are indispensable conditions for direct investments abroad.