Entrance Strategies Essay Example | Topics and Well Written Essays - 750 words

Entrance Strategies - Essay Example is reason, it is assumed that the license has benefits to both members of the agreement; otherwise, they would not be partisan to the license in the first place. In the corporate scene, the licensor usually receives royalty fees due to the permission granted to the licensee. Unlike in the past, an increased number in licensing agreements has been witnessed, especially in the corporate sector. Although different licenses contain different attributes with respect to the nature of the transaction, it is possible to tell an attractive license from one that is not attractive. Acknowledgement of these characteristics is a sure way of ensuring insulation from anticipated loss because of an unfavorable license agreement. Licensing is unattractive to a firm if: Previous knowledge describes competitive advantage as the ability of a firm to overpower its rivals. It is the condition experienced when a firm it is able to combine elements of its production process in an effective way that outperforms the rivals (John, 1996). Propriety technology is a specific process or item that tends to posses some great deal of benefit to the individual owning it. In actual sense, it may involve a special combination mix whose manipulation yields very rewarding results to the owner. As such, the ability to produce a proprietary technology individually yields an asset that can be quantified in terms of value. It is to be noted that, the proprietary technology is transferrable from one individual to another through sale for instance or even licensing making the tool volatile. This is made possible thanks to the ability to separate the technology from the individual who produced it. Therefore the source of the technology reaps benefits inform of royalties in th e case of licensing it out. Now, based on the adequate background information shared, it is clear that proprietary technology is highly valuable given the high regards associated with it. However, the volatility attribute of the same