There are two kinds of markets which are the downstream markets and the upstream markets. The downstream markets are found to hand from the product team to the remote engineering team. They are found to have little say in the market. They are measured using the transactional measurements (Kraljic, 1983). The down streaming markets are often not based on nuanced strategies and are more focused on the marketing tactics. They are usually found to be safe for the interim. The up streaming market, on the other hand, is found to be less common. In this group, there are many researchers that interact with the markets to develop long term cohesive solutions that are bound to develop (Kaplinsky and Morris, 2001). These are found to be key market product teams that are used to define the future directions for the company. These groups are found to have challenges. In this schema, there are more risks involved (Peteraf, 1993). The companies such as IBM and ELT are found to change their downstream market strategy to reposition the products. For this, they have developed nuanced ways of risk sharing.
Risk sharing is found to occur between two parties as they identify the innate risks and jointly agree to face the consequences during the occurrence of the loss of the risk. This is done in joint ventures. In this, the people are found to share the equity risks and address the stakes in the value. Risk sharing is found to occur in the outsourcing transactions. In this, one of the parties has a physical control over the performance of the other party. The outsourcing transactions are found to involve typical repetitive business processes (Horvath, 2001). Outsourcing is a nuanced forms of joint ventures that are developed to understand the risk sharing. The innate issues of outsourcing and risk sharing are the returns that are expected for the company. There is considerable loss of control over the operation in the cases of outsourcing. There are many more actors in the particular schema and would cause issues in maintaining the conventional power dynamics in the company (Fisher, 2003). The companies are at risk for sharing their confidential agreement with the stakeholders. The companies need to ensure that they meet the demands of the stakeholders. Outsourcing has been a proven way to reduce costs and optimization of the resources (Smith and Tardif, 2009). There is a generally lesser risk involved in this process. These needs to be addressed in order to create a cohesive solution between the parties involved.
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