The definition of consortium is the union of several entities that have common objectives and that choose to join forces in a joint strategy. The consortium concept should not be confused with the merger of companies, since in the first case each company maintains its independence but adopts a framework of relationships with the same objective.
As a strategic modality, the consortium can be applied to any type of sector, be it tourism, commerce, industry or the field of insurance. This grouping of companies implies the creation of a new legal organization.
The aim of the consortium is to join individual efforts to achieve greater economic and social benefit, that is, greater competitiveness of the entities. In this case, unity is strength.
Consortia are legally regulated by a business collaboration contract. Through these agreements, the members that make up the consortium are associated to take part in the activity shared by the different participants of the same.
Despite the union, no individual entity loses its legal personality. In the event that two companies incorporated as corporations are integrated into a consortium, the two will continue to be independent public limited companies.
Contracts are usually of the associative type, where the body that is created acts by sharing and complementing the resources of each member. The established agreement must specify what are the services or benefits of each of the components of the consortium.
One of the consortium examples is the following case. In a town where the main source of income is tourism, those economic agents who intend to promote the area and its attractions can bring together hoteliers, merchants' associations and the administration around a consortium. In this way, by working together they would have a better chance of carrying out marketing campaigns and promoting themselves.