licensing entry mode
DESCRIPTION
TRANSCRIPT
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Karen Xiomara Díaz Dussan Yina Jasbleidy Sánchez Prieto
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LICENSING Is a contractual agreement between
two companies of different countries, by means of
which a international company concedes to other
company abroad the right to use :
-A productive process
-A patent, a registered brand
-A trade secret or other intangible assets in
exchange for an initial fixed payment
- A royalty or both.
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LICENSOR LICENSE LICENSEE
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Parent company of international
enterprise
One or more of its foreign affiliates
International Enterprise Independent foreign, private or
government enterprise
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The licensee normally sells the product in the
domestic market with the same characteristics
that it was before.
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Is the right to exploit a
brand, product or service
in which the technical
knowledge or technical
advice is transmitted into
produce or sell goods
according to the methods
established by trademark
holder.
FRANCHISING
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Is a type of licensing that consists in establish a working
arrangement between the two companies. When licensor
permits the licensee to manufacture a product under the
brand of the first subject to compliance with certain quality
requirements.
MANUFACTURING
CONTRACTS
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Is register an invention that serves its creator
to protect against the manufacture or sale of
the mechanism by another member.
CESION PATENTS
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Low cost to
the licensor
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They can be
served markets
marginal
or inaccessible
Ability to use
knowledge
management
and policies
local marketing
No need for a
big investment
own resource
managers
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It requires little capital
investment and
usually provide a high
return on
initial investment
Wide range
of shapes
contractual
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.
.
.
Potential creation of future
competitors
Possible marketing
underperformance
may not be controlled
Limited flexibility to apply sophisticated technology
and marketing advances at a later stage.
Limited profit potential
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.
.
.
Policing the implementation of
the licensing agreement is very
expensive.
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The difference between Licensing and Franchising is:
In the Licensing there aren’t capacitation, product development, technical consultants; the license has more autonomy to realize that process agree to his way.
In the Franchising the franchisee receive technical support, capacitation, product development strategies and other supports of franchisor.
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REFERENCES
http://plataforma.unibague.edu.co/pluginfil
e.php/3001/mod_scorm/content/1/docume
nts/Chapter%208%20Entering%20the%20
international%20marketing.pdf
http://www.businessdictionary.com/
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www.themegallery.com