Question answer Assignment Example | Topics and Well Written Essays - 500 words

Question answer - Assignment Example This, to market observers, is an aggressive strategy that has led them to court over intellectual property with Apple. Samsung pivots and launches its products quickly with each product offering different features. It studies the market needs and pushes products that are successful while killing the failures. It has differentiated itself from Apple by developing phones with larger screens, impressive features, listening to consumer demands and successful marketing. Nestle is another example of a company that regards the USA as a foreign market. Being a global organization, Nestle adopts competitive strategies when entering into new markets. Most of its products are dairy-based and for this reason, it first undertakes direct investment in the dairy and other food businesses. In terms of sales, Nestle usually attempts to maintain low risk and low growth; this ensures that its growth is steady thereby maintaining the confidence of stakeholders. In the USA, a developed market, Nestle gains economies of scale through the aforementioned strategy; foreign direct investment. This investment is directed into big companies handling both dairy and food-related products. Another strategy that is effective is entering into partnerships with large companies. The most notable partnership is the one with Coca-Cola, which enable Nestle to benefit from the worldwide bottling system of Coca-Cola. Licensing despite being a solid foreign market entry strategy it has its own risks and downsides. Licensing refers to an agreement that involves the selling of rights to the licensee to reproduce intellectual property of the licensor. First, if the licensee firm is competitive and rapidly growing it may develop into a future competitor to the licensor firm. Another risk that should be taken into consideration is the misuse of the trademarks by the licensee firm, which often leads to the violation of the licensing agreement. The licensor