A primary disadvantage of a licensing strategy is the need to:

Question

Quizplus · Accepted Answer

Licensing involves granting rights to use a company's intellectual property to another firm. This means that the licensee may have some degree of control over the competitive offering, including marketing, pricing, and distribution. The licensor may lose control over their brand and quality standards, and this may affect their reputation. Therefore, one of the primary disadvantages of licensing is the loss of control over the competitive offering. Monitoring the licensing agreement, safeguarding proprietary know-how, and working with reputable firms are other considerations for a licensing strategy but are not the primary disadvantage.

A Primary Disadvantage of a Licensing Strategy Is the Need