Company B signed a licensing agreement with the Company S nearly 50 years ago. This makes the Company B to build a strong basement in Country J. Recently Company B ends it agreement to open its own store in the Country J. This will lead to more cost and risk in the operation in Country J. To discuss: The limitation of licensing strategy and whether Company B expects theses drawbacks. Characters in the case: Company B Country J Introduction: Licensing refers to the right given to the licensee for purchasing and selling the products for some specified royalty fee on units sold.

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Chapter 8, Problem 2CDQ

Summary Introduction

Case summary:

Company B signed a licensing agreement with the Company S nearly 50 years ago. This makes the Company B to build a strong basement in Country J. Recently Company B ends it agreement to open its own store in the Country J. This will lead to more cost and risk in the operation in Country J.

To discuss: The limitation of licensing strategy and whether Company B expects theses drawbacks.

Characters in the case:

Company B

Country J

Introduction:

Licensing refers to the right given to the licensee for purchasing and selling the products for some specified royalty fee on units sold.

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