Enter Foreign Market through Licensing and Joint Venture

By doing both collaboration joint ventures as acquisition could help them to be more flexible to demand that could arrive.

Example-a lot of financial consultants use only the basic Series 6 license. A lot less folks have registrations. I received my Series 7 many years ago as one of my first licenses. Eventually, about 10 years ago I studied and passed exams for my Series 9 and 10, Options Principal and General Securities Sales Supervisor. The knowledge acquired allowed me to have a lot better understanding of many aspects of this business and bring more value to the clients.

Advantages , Internet: Real-time agility, use of different languages ,visuals, text and sound, ease of searching for information.

· Easier communication, as marketing is done for specific segments of the market which are more likely to buy the service.

The advantages are that it provides a broad coverage and it comes with a low cost to the company.

In this business formation the business takes on all liability removing any personal liability from all involved partners.

Training encourages the evolution of a culture of learning. The company that has developed a reputation of focusing on employee learning, and training will have the pool of the best people to choose from in their near future particularly of the younger

A joint venture is characterised by the need to achieve a business transaction while remaining separate from each other. Each firm maintains its resources and independence while engaging in an activity, with the objective of achieving certain objectives. The need for joint ventures in the Pharmaceutical industry may be characterised by the need to reduce high R&D costs and by so doing, share costs through common equity (Roijakkers&Hagedoon,2005, p.8). Joint venture as a mode of market entry may

The advantages of having a business network are 3; Private information, access to various skill sets, and Power.

i. Business networking has many advantages. These include extending brand awareness and reach. Efficient networking reduces the costs of marketing and advertising and can improve personal promotional and business opportunities. An effective networking strategy is a necessity in the modern business environment.

“In the earliest phases of its build out; however, an infrastructural technology can take the form of a proprietary technology. As long as access to the technology is restricted—through physical limitations, intellectual property rights, high costs, or a lack of standards—a company can use it to gain advantages over rivals.” As Laura Acevedo notates in her article Business Benefits of Information Technology, “Companies using a first-movers strategy can use information technology to create new products, distance their products from the existing market or enhance their customer services. Companies that follow a low-cost product strategy can look to information technology solutions to reduce their costs through increased productivity and reduced need for employee overhead.” The contention is that once a technology has evolved from being considered a proprietary technology into an infrastructural technology then the differentiation from one company to the next is inevitably lost.

It is because through the joint venture, the company is more familiar with the situation of the company there. The negative outcome is that the management system different between the company. So it is hard to make a decision making. It is because there is different opinion of each person.

Licensing differs from contract manufacturing in that more value chain functions have been transferred to the licensee. In outsourcing production and downstream activities a licensor firm can concentrate on its core competences and therefore will remain technologically superior in its product development- for example Apple licenses its brand to manufacturers of accessory products, and the BBC licenses rights to broadcast TV shows around the world. However a lack of control over licensor operations and therefore quality may lead a company to use franchising (a sub variant of licensing) in which the franchisor gives a right to the franchisee against a

Joint ventures have further benefits. Joint ventures are based on sharing individual ability and resources for the purpose of achieving a mutually beneficial objective. Sony gains access to Ericsson’s market share and their network of infrastructure and handset technology. Ericsson can acquire Sony's experience on consumer electronics, fashionable designs and production processes. Hence, the joint venture overcomes Sony's low market share and strengthens Ericsson's ability of research and product development. Thus joint ventures resolve the opportunism issue with OEM, licensing and franchising.

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).