After developing the new Personal computer with special functions the company would need to be cautious. Although there are patents out protecting the design of this new computer it is still possible for others to see the design and create something similar based off of it. Although licensing the brand would greatly benefit the cost of production and relieve most of the cost from transportation it would be wise to not give another company the opportunity to see the design. Creating the company in the home-country and exporting would help keep the design to ourselves and is therefore safe. However, doing this will increase the cost of transportation significantly. A third option that the company has is to wholly own a subsidiary. This will allow the company to control all matters regarding the production strategy as well as the marketing aspect. Setting up a wholly owned subsidiary is expensive and a major risk as it requires the parent company to commit 100% of the equity contributed. It also means that the parent company will take the entire loss if it by chance fails. Doing this though would likely decrease the cost of production and transportation of goods or services. Considering where the company wants to go and sell, I would think it is wise to go with the third option. A strong PC is likely to do well in Western Europe and I do not see reason to expect failure. Going with this option would allow the company to keep its design private as well as reducing the costs of transportation and possibly production. please help reply to this discussion post
After developing the new Personal computer with special functions the company would need to be cautious. Although there are patents out protecting the design of this new computer it is still possible for others to see the design and create something similar based off of it. Although licensing the brand would greatly benefit the cost of production and relieve most of the cost from transportation it would be wise to not give another company the opportunity to see the design. Creating the company in the home-country and exporting would help keep the design to ourselves and is therefore safe. However, doing this will increase the cost of transportation significantly. A third option that the company has is to wholly own a subsidiary. This will allow the company to control all matters regarding the production strategy as well as the marketing aspect. Setting up a wholly owned subsidiary is expensive and a major risk as it requires the parent company to commit 100% of the equity contributed. It also means that the parent company will take the entire loss if it by chance fails. Doing this though would likely decrease the cost of production and transportation of goods or services. Considering where the company wants to go and sell, I would think it is wise to go with the third option. A strong PC is likely to do well in Western Europe and I do not see reason to expect failure. Going with this option would allow the company to keep its design private as well as reducing the costs of transportation and possibly production.
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