Advantages And Disadvantages Of Mobike In Licensing Strategy

Decent Essays
Advantage Disadvantage
Licensing out their core technologies - High royalties fee collected
- Money can invest into R&D - Create competition from external, lower revenue
Licensing in core technologies that lack of - Can complement the lagging technology fast - High cost
- Low control in technology
Cross licensing with Ofo - Higher chance to become dominant power & design - Lower the barrier in competition

Table 2 Comparison of the advantage & disadvantage for Mobike in licensing strategy

Careful consideration is required. Recommendation is that Mobike can go for 2nd option, through licensing in core technologies that lack of. This is basing on the strong financial status that Mobike currently have. They might want to consider
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The 2 companies that come straight to the mind are ShangHaiLiangMing Tech Development Ltd & Chengdu Step and Share Tech Co.Ltd. ShangHai LiangMing has the most & strongest patent coverage in bicycle management/control, user interface & payment method, while ChengDu Step and Share has equivalent coverage in bike body system, power generation, & it share similar patent profile with Mobike. Mobike might want to form patent alliances or patent pools, in these few areas with the 2 companies, & provide licensing to Beijing Bikelock Ofo & all the rest of minor bike sharing company.
This will enable the fast establishment of dominant design of the bike sharing industry. All the complementary assets, such as application, user interface, lock, bike body design, business model can be formed in a fast manner. This will also reduce the chance of patent being infringed with more patent coverages from the other 2 parties holding substantial amounts of
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