Final answer:
The key to licensing strategy success is ensuring ongoing competitive advantage by using barriers to entry and creating strong brand awareness to prevent new competitors from entering the market and eroding the company's market position.
Step-by-step explanation:
The key to licensing strategy success is ensuring ongoing competitive advantage. This means leveraging barriers to entry such as economies of scale, and intellectual property laws like patents and trademarks, and creating strong brand awareness that distinguishes a company's products or services from its competitors. Monopolistic competitors must consider how to differentiate their offerings and maintain their market position, as new entrants are often tempted to enter the market when they see existing firms earning positive economic profits. For example, a company with a well-known brand name must invest in marketing and advertising to maintain brand recognition and prevent competitors from gaining a foothold in the market.