Licence Gives permission to use one’s product/service or intellectual property, usually within a certain timeframe & location Does give up the competitive value, hence competitive advantage of the product/service/IP
Modes of Entry that retains/ reduces Firm’s Control Loses Control Retains Control Licensing Joint Ventures Partnerships Collaboration Mergers & Acquisition Subsidiaries/Branch/Greenfield setups Franchise
Counter Trade Risk is quality of products /services/IP http://www.youtube.com/watch?v=vTswzfoejq4 http://www.youtube.com/watch?v=EWUySXjZ4ro
Student Request Gail Pizziis requesting her group to contact her: Email: email@example.com
GE Case Qs – Page 511 / 512 GE Used to have a preference for acquisitions or greefiled ventures as an entry mode, rather than JV. Why do you think this was the case? Why do you think GE has come to prefer JV in recent years? Do you think that the global economic crisis of 2008-2009 might have impacted upon this preference in any way? If so, how? What are the risks that GE must assume when it enters into a JV? Is there anyway for GE to reduce these risks? The case methods that GE has a well-earned reputation for being a good partner. What are the likely benefits of this reputation to GE? If GE were to tarnish its reputation by, example, opportunistically taking advantage of a partner, how might this impact the company going forward? In addition to its reputation for being a good partner, what other assets do you think GE brings to the table that make it an attractive JV partner?