Question

Which of the following is key to licensing strategy​ success?

A) Enabling a company to​ borrow another​ company's resources
B) Ensuring ongoing competitive advantage
C) Limitation of market share
D) Creating new competitors from licensees
E) Brand awareness

Answer 1

The key to successful licensing strategy is ensuring ongoing competitive advantage, which involves using a company's resources in a way that maintains its competitive position without creating new competitors. Examples of barriers to entry include government-enforced measures like licensing limitations, legal requirements for operation, trademarks, control of physical resources, and natural monopolies arising from economies of scale.

Step-by-step explanation:

Key to successful licensing strategy is B) Ensuring ongoing competitive advantage. This entails leveraging a company's existing resources, like brand awareness, patented technology, or proprietary processes, in a way that maintains a strong market position and does not create new competitors from the licensees. A successful licensing strategy allows a company to capitalize on its capabilities and intellectual property, contributing to long-term business success.Intellectual property laws such as patents and trademarks provide legal protection for businesses and are key factors in forming monopolies or oligopolies by creating barriers to entry for competitors.