Benecol in the US Step 1 of world-wide expansion
There are whatsoever key issues in the case, and portal mode is the main issue as well as the mart research. The third issue is their future plans, strategy and busy differences, and the collaboration with McNeil has non turned out to be as good as they did hope it would be, and they therefore need some changes.
They have used an exclusive licensing agreement, which is an arrangement whereby a licensor grants the rights to intangible asset property to another entity (the licensee) for a specified period and, in return, the licensor receives a royalty fee from the licensee.1 Licensing agreements have both returns and disadvantages for The Raisio assort. The advantages is that Raisio does not have to bear the development costs and risk associated with the crack a foreign market. The disadvantages are the fact that The Ratio Group looses the tight control for realizing experience curve and location economies.
A licensing agreement is good, but still it has some weaknesses. Raisio is completely drug-addicted on McNeils commitment to Benecol and the success of the McNeils market strategy.
McNeil was not interested in launching Benecol globally in a broad scale, and the Raisio groups vision was to perplex a leading international life science point chemical comp some(prenominal). This means; they have contrastive opinions on expanding and different visions/interests. Since Benecol already is in the Finnish market, Rabbe Klements believe that they have an advantage in atomic number 63. With the existing contract, Raisio have no rights to enter Europe and try to pitch their products there.
The market in the US is not the same as in Finland. In Finland they started before they had any competitors with the same percentage results on cholesterol. The price was seven propagation the average margarine product, but it was still selling big time. They sort of have a monopoly, which involves charging whatever the market testament bear. In the US, it is...If you want to get a full essay, cast it on our website: Orderessay
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