D Manufacturing Case Study

D is a manufacturer specialized in electronics that are protected by patents and have been around for 5 years. In those 5 years D manufacturer has been able to have a monopoly in its own country. However, D manufacturing has experienced some limited growth capabilities and is now looking to keep the company growing outside of its home country. D Manufacturing focuses on tagging and tracing equipment for the police department as well as the prisoners. Their board has agreed to implement a growth strategy in which they will export their products and hopefully continue their growth. The board is hopeful that within 5 years the company will have developed presence in markets of the world, and will be operating in the number of countries they will …show more content…
Licensing is when a company of the outside country agrees to let D manufacturing use their resources, their trademark, manufacturing or even skills the outside company might poses in return for a payment. Some of the advantages of licensing include an easy point of entry, less financial risk for D manufacturing, it benefits both companies, there is no startup cost and some of its property licenses include the trademarks, their technology, and their technology know-hows, and all business …show more content…
The reason being, that D manufacturing deals with electronic tracking equipment that is used by police forces, and when it comes to licensing there has to be a codified knowledge available, and a strong property right such as the police forces around the world. Also, Licensing lacks the ability to becoming a competitor and that would benefit D manufacturing greatly. Finally, the speed of entry is quick and it would have a high ROI and the risk and investment is