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Essay / Research Paper Abstract
A 6 page paper in two parts, one consisting of a memorandum addressing strategic alliance considerations, the other discussing Wal-Mart's attempts to enter the difficult Japanese retail market. In part I, the owner of technology of interest to the petroleum industry examines how it can make that technology available to worldwide refiners while avoiding entering the industry or giving up rights to the technology. The paper recommends that it form a strategic alliance with a US manufacturer, which will also provide skilled maintenance and repair personnel. The company sells license to the technology, retaining ownership of both the technology and the equipment. Part 2 discusses obstacles and opportunities that Wal-Mart faces in pleasing demanding Japanese consumers. Bibliography lists 1 source.
Page Count:
6 pages (~225 words per page)
File: CC6_KSstratPTI.rtf
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Unformatted sample text from the term paper:
From: Subject: Making PTI Technology Available to Customers Date: July 16, 2002 This memo is in response to the questions of how to make
PTI technology available to customers while still retaining rights to it, and addresses issues of manufacturing and maintenance responsibilities. Maximizing Profits PTIs goal
is twofold: maximize profit on our technology and retain rights to the proprietary information comprising that technology. The most straightforward method of use of PTI technology would be
for the company to enter the oil industry, but that approach is not one seen to be workable. It is not consistent with the goals of the company, and
entry into the industry is immensely capital-intensive. The preferable route is to find strategic partners to which PTI can license the technology, profiting from its creation in the form
of licensing and usage fees. Joint Venture A common route to collaboration forming a strategic
alliance is to form a joint venture with one of the companies currently operating in the industry. The company needs to be an industry leader or have the potential
for becoming such a leader. Otherwise, the profits possible from the joint venture for PTIs purposes will be limited. The venture target needs to bring a significant share
of the market to the venture. Otherwise, profits for PTI will be limited while the refiner seeks to increase its own sales.
A joint venture can be immensely profitable. Its greatest detriments in this case are that (1) PTI would need to assign rights to its proprietary technology to the organization
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