A joint venture is an attractive way for a company to enter a new industry when

the firm has no prior experience with diversification.

search costs are higher than monitoring costs.

the firm is missing some essential skills or capabilities or resources and needs a partner to supply the missing expertise and competencies or fill the resource gaps.

the firm needs access to economies of scope and good financial fits in order to be cost$-$competitive.

the firm has not built up a hoard of cash with which to finance a diversification effort.