Selling the product to a competitor essay

Selling the product to a competitor may be a part of the exit strategy. The main reason for selling the product is the possible threat to the further maintenance of the position of the product in the market (Clarke, 2000). For instance, the risk of the tightening competition may need additional investments being made to enhance the development of the product. In such a situation, selling the product to a rival may be a better option than investing into the product, especially if the sale meets the exit strategy.

At the same time, franchising can help to promote the product and to expand the market share. Franchising means the partnership with other companies, granting them the right to manufacture and sell the product or service, according to the company’s standards (Peters, 2007). Franchise eases the workload because the franchise owner grants franchises, while business partners develop their business dealing with legal and financial issues. However, the franchise owner still has to maintain the control over the performance of companies using the advantage of franchise to maintain the high quality of products and services.

Question 2

The article “Are Americans Saving Enough for Retirement?” by Mark Miller focuses on the problem of the retirement plans of Americans. The author argues that Americans maintain their traditional attitude to retirement, which is totally wrong today because the traditional approach to their retirement plans. Today, they have to increase their investments into their retirement plans since retirement savings should match ten year salaries plans. Instead, Americans rely heavily on the social security, which provides them with the essential support. Today, 63% of retired Americans rely on the Social Security, while 80% of Americans count on the Social Security and their families’ support, when they retire (Miller, 2013). In such a way, the author concludes that Americans need changing their attitude to retirement and their retirement plans.