A consortium is the union of several entities that, by sharing common objectives, decide to ally themselves in a joint strategy. This is not a merger of companies but each entity maintains its independence but adopts a framework of relationships with a shared purpose.
The consortium as a strategic modality is applicable to any type of sector, related to tourism, industry, commerce, the field of insurance or other activities. In general, consortia involve the creation of a new legal organization, usually a company.
The purpose of a consortium is clear: to join individual efforts to obtain a greater economic benefit. In other words, the objective is to achieve greater competitiveness according to the criterion that unity is strength.
Some general characteristics
Generally speaking, consortia are legally regulated by a business collaboration contract. Through these contracts, the members of the consortium are associated to participate in the activity shared by all the members of the consortium.
In the union that the consortium represents, no individual entity loses its legal personality (for example, two companies that are public limited companies that create a consortium will continue to be independent public limited companies).
Consortium contracts are normally associative type contracts, in which the association that is created acts by sharing and complementing the resources of each entity. In this sense, it is important to underline that the contracts that are established must specify what the benefits or services of each of the members of the consortium are.
Example of a consortium in the tourism sector
Let's imagine a town whose main source of income is tourism. In it, the different economic agents are interested in promoting the area so that it is visited by a greater number of tourists. Faced with this circumstance, the hoteliers, the administration and the merchant associations decide to create a consortium with a global strategy.
To do this, they design a strategic plan based on the following sections: citizen activities for the benefit of the tourist offer, promoting international markets that operate with the tourist destination and managing actions that enhance the tourist offer. As can be seen with this example, all the sectors involved (public and private) have common objectives, so the consortium formula assumes an alliance that aims to benefit everyone equally.
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