Question

When a firm expects rapid imitation of its core technology by competitors, what should it do? A. Revert to old technologies B. Offer franchise agreements to the highest bidders after waiting several months C. License its technology as rapidly as possible to foreign firms D. Take on green-field investments

Answer 1

Answer: C. License its technology as rapidly as possible to foreign firms

Explanation: Core competencies are an important special capability or expertise that afford a business sustainable competitive advantage. It is also the optimal entry mode for firms into new markets. However, when such competencies are at risk of being imitated such as core technology, such as when it perceives its competitive advantage to be transitory, it might want to license its technology as rapidly as possible to foreign firms. This is done in order to gain global acceptance for its technology before it is imitated.

Answer 2

Answer:

C. License its technology as rapidly as possible to foreign firms.

Explanation:

When you are expecting other firms or your competitors to follow you or imitate your technology then it is the right time to license your technology so that one cannot use it without permission. This would not only help the firm stabilize and work efficiently as compared to its competitors, but will also be a way of earning big profits as compared to its peers.

Good luck buddy.