Respuesta :
The main reason was that for 50 years Burberry licensing arrangement with Sanyo Shokai generated them a revenue of $800 M and the company need not spend money on developing its iconic brand in japan
Explanation:
Why did Burberry first license in Japan?
The main reason was that for 50 years Burberry licensing arrangement with Sanyo Shokai generated them a revenue of $800 M and the company need not spend money on developing its iconic brand in japan
What limitations of Burberry's licensing strategy became apparent over time? Should they have expected these drawbacks?
The most important factor was the pricing caused problems because the product of Burberry was priced lower than the company charged in other countries
Was terminating the Japanese licensing agreement and opening stores the correct strategic move for Burberry? What were the risks?
Burberry had little /no choice left but to end the agreement with Sanyo Shokai .Yes opening its own stores in japan was the correct strategic move for Burberry . Burberry now assumes all costs and risks of operating in Japan.
To what extent does Internalization theory explain Burberry's experience in Japan?
We can say that Burberry's experience is consistent with internalization theory - while the company licensed its brand initially,it ended its licensing arrangement in favor of wholly-owned operations to gain better control over its brand and how it is was being used
