This assignment takes the form of a case study. The decision of four companies in the late 20th
Century to license or not license their technology has impacted the lives of many Americans.
In the early 1970's Sony Corporation introduced the first video tape system designed for home use, the Betamax®. The Betamax® was generally considered a superior format in terms of picture quality to the VHS® format, which was subsequently introduced by JVC (Victor Company of Japan, Ltd.) in 1976.
At roughly the same time, Apple® Computer developed the first mass produced "home computer." Subsequently, Bill Gates and Paul Allen formed Microsoft® and marketed the "DOS" operating system. DOS was considered by most knowledgeable people to be inferior to Apple® technology. (Even today, many consider Macintosh® technology to be superior to that of Windows®.)
Obviously today, Windows® and DVDs dominate their fields while the Macintosh® and the
Betamax® lost what should have been significant market shares.
Research the history of these four products and ascertain how licensing may have impacted
consumer acceptance. Your analysis should generally be between 750 and 1,000 words.
In reference to the issues associated with licensing in regard to Sony's Betamax and JVC's VHS, there were mistakes made by Sony, who focused on the traditional approach of hoarding the technology and refusing to license it to manufacturers for fear of losing its patent or intellectual properties associated with the new technology. This approach to licensing was the slow approach wherein the company collaborated with as few outside sources as possible to deliver their product as to prevent any inside information from being shared that would allow competitors or anyone else to duplicate their innovation. Therefore, Betamax's better technical format was nullified by its inability to engage in collaborative marketing of its product wherein it quickly licensed dealers not associated with Sony to sell the merchandise. In contrast, Sony's rival JVC was quick to license its technology and collaborate with manufacturers such as Panasonic and Mitsubishi to engage in a clever marketing campaign that extolled the virtues of the VHS format in contrast to the Betamax.
Some of these ...
Franchising and licensing is examined.