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However, in the given situation, the US firm's manufacturing processes is the firm's competitive advantage, and it is allowing the firm to be extremely profitable by cutting costs by 50%. If you were to grant another firm in another country a license to your product, how would you ensure the same profitability and manufacturing procedures would be controlled abroad, as one of the main limitations to licensing is losing control over manufacturing processes, the firm's competitive advantage? Would you be concerned that the firm abroad would obtain inside know-how of your product and manufacturing procedures, and could later become a competitor?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91903233

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