Which of the following modes of entry is suitable for service firms where the risk of losing control over the management skills or technological know-how is not much of a concern, and where the firms' valuable asset is their brand name?
A)Exporting
B)Franchising
C)Licensing
D)Turnkey projects
E)Cross-licensing

Question

Quizplus · Accepted Answer

The competitive advantage of many service firms is based on management know-how. For such firms, the risk of losing control over the management skills and technology to franchisees or joint-venture partners is not that great. These firms' valuable asset is their brand name, and brand names are generally well protected by international laws pertaining to trademarks. As a result, many service firms favor a combination of franchising and subsidiaries to control the franchises within particular countries or regions.

Which of the Following Modes of Entry Is Suitable for Service