Franchising is a strategy employed mainly by service companies. The advantages of franchising are similar to those of licensing. The franchiser does not bear the…

Joint venture with a foreign partner to enter foreign markets has been the vogue in recent times. A 50:50 venture is quite common, in which…

A wholly owned subsidiary offers three advantages.  First, when a company’s competitive advantage is based on its technological superiority, a wholly owned subsidiary makes sense,…

International expansion represents a way of earning greater returns for companies by transferring the skills and product offerings derived from their unique competencies to markets…

Unique Competencies: are defined as unique strengths that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness. Location Advantages: are those that…

The dynamics of an industry plays a critical role in the formulation of a firm’s strategy. It can increase or decrease opportunities or a threat…

In today’s business environment, it is not clear what changes are taking place currently, much less predict which changes will occur in the future. Given…

Generally, a dynamic environment is characterized by newly formed or re-formed industries that have been created by technological innovations, the emergence of new consumer needs/…

Industries operating in a dynamic environment have to cope with the uncertainty and risk inherent in the industry environment. The industry structure is highly amorphous,…