Question

Discuss the problems associated with Burberry’s licensing arrangement in Japan. What were the benefits of establishing a relationship with Sanyo Shokai in the country?

Answer 1

Answer:

Problems: For details refer below

Benefits: For details refer below

Explanation:

Problems associated with Burberry’s licensing arrangement in Japan

1) Licenser creates potential competitors

2) There is a lower control in licensee

Benefits of establishing a relationship with Sanyo Shokai in the country

1) Less costly as compare to Foreign direct investment

2) Responsibility can be shared with the third party