Pearson eText Business in Action -- Instant Access (Pearson+)
Pearson eText Business in Action -- Instant Access (Pearson+)
9th Edition
ISBN: 9780135636459
Author: Courtland Bovee, John Thill
Publisher: PEARSON+
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Chapter 3, Problem 1CTQ
Summary Introduction

Case summary:

The case is about Company A, started by 3 people with a plan of playing the matchmaker among the people with empty or additional rooms for rent and the travelers searching for cheaper alternatives for hotels. They have utilized the transnational strategy for the success for international expansion of the firm. Thus, at the initial stage, they struggled and had many failure attempts, but at last, they reached great heights.

To discuss: Whether providing license of Company A’s business system to the other firm is a good way to set up the brand in different countries.

Expert Solution & Answer
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Explanation of Solution

From Person X’s point of view, providing license of Company A’s system to other firms would have been a better way to set up the brand in different countries. As the system will be widespread, the growth of the Company A would have been expanded drastically. However, Company A has utilized the smart way, that is, transnational strategy for global expansion of the business.

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