Advantages and Disadvantages of Licensing as a Mode of Entry Into Foreign Markets

The duration of copyright determines the length of protection. Limitations on this length exist to ensure works enter the public domain. Therefore, the length of protection is one of the most relevant and debated issues regarding copyright law. The proponents and opponents of copyright term extension make compelling arguments, but both sides agree that copyright law should encourage creativity and innovation. If Disney is successful in once again lobbying for an extension of duration, a substantial number of works will fail to enter the public domain in a timely manner. This will, consequently, lead to a stifling of creativity and a suppression of innovation that could be detrimental to progress in the realms of science and the useful arts.

Exporting, licensing, and using trading companies are preferred modes of international market entry for firms with a(n) ____ structure.

xx. Walt Disney has developed the ability to internationalize their brand through diversification in entertainment and products for different cultures.

Globalization is one of the crucial factors that have impacted the business. Without the proper utilization of the effects of the globalization, it is very difficult for a company to get the competitive advantage. There are many factors that need to be considered before rolling out the product in the global market. The first is to analyze the value chain of the company and to understand and decide on the position where they management wants the company to be into. Then comes the licensing,

|Innovating ideas on downloaded music’s popularity with consumers |Extremely fast demand for new games |

Globalization. Walt Disney Products and Services are found all over the world in different forms and areas. Disney has focused on growth internationally in the last few years. As a global brand, Walt Disney International provides oversight of the company’s

Globalization is forcing all companies, large and small, to focus on a larger competitive landscape. For many companies hypercompetition arises and they are left with stunted growth while competing with other businesses across the globe. Fortunately, Disney has constructed one of the world’s most recognizable and beloved brands in the entire world. To understand the external environment in which Disney competes, we must first discern which market we wish to analyze. Disney owns a plethora of companies across an extensive list of industries including publishing, game production, retail, theme parks, and software. By far the two largest segments of Disney’s business are its parks/resorts and media networks; those will be

In spite of the popularity of Disney’s iconic characters and the immersion into their world that park-goers experience, Disney’s expansion outside of the United

Market entry risks such as cultural differences, competitors, legislation, transportation issues, infringement of intellectual property rights and copyright.

Disney operates in very competitive industries such as media, tourism, parks and resorts, interactive entertainment and others. The competitive landscape changes quite drastically in the media industry, where news and TV go online and new competitors with new business models compete more successfully than incumbent media companies. Disney’s parks and resorts business segment also receives strong competition from local competitors who can offer better-adapted product. This results in growing competitive pressure for Walt Disney Company (Ovidijus Jurevicius).

In the future, licensing will keep increasing and its percentage of revenue will grow, especially if the management adopts a strategy of capitalizing on it.

There must be a balance between the developer of the intellectual property and the interest of the public. Intellectual property is already a big business among companies. Expanding the monopolies has the effect of allowing companies to negotiate and cross-licensing technology. Microsoft, as recently reported on the Wall Street Journal, is looking to expand the licensing of its technologies, after successfully licensing some video decoders to open source groups.

Lately, the international financial integration has increased. Over the years, the world economy has witnessed an increase in the number of individuals and businesses using international banking services. In today’s competitive global economy banks have the option to solely service their home market, to export services to foreign markets, or to establish a presence in that market. Essentially, banks have two options of expanding their operations in foreign markets. They can either service foreign clients through their domestic offices or they can establish a presence in the foreign markets. In general, the reasons for bank internationalization in

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

First the licensing may result in a firm's giving away its know-how that is giving away his competitive advantage to the competitor in the foreign market. Suppose Ford gives license to AvtoVAZ, one of the large Russian manufacture then it can start its own car manufacturing using Ford's know how. Second disadvantage is providing the license to the company there is no tight control over the subsidiary firm in foreign market. Ford wants to exploits the opportunity that it has in Russia by its own way. Licensee may not follow all instruction of Ford. The last problem with the giving license is that some terms of know-how can not be defined on a page or documented. Like service industry (Hospitality industry) that how to license the subsidiary for "how to well come and how to greet" as a part of the service.(Hill, 2003,p-215).