Subject category:
Marketing
Published by:
Ivey Publishing
Version: 2002-06-06
Length: 22 pages
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Abstract
Battery Technologies Inc is a Canadian company that has developed a new rechargeable battery technology. They have decided to license the technology to larger, established battery manufacturers. Problems have arisen due to the reluctance of the larger companies to purchase these licenses, both because BTI has little credibility and because they fear cannibalization of their main product lines. BTI has responded by attempting to bring new players into the battery industry and licensing them. This strategy has not worked. BTI is currently facing a financial crisis and must evaluate the viability of their licensing strategy. The alternatives are for BTI to manufacture the battery themselves, or to effectively sell out to a major US-based, non-battery manufacturing corporation.
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Abstract
Battery Technologies Inc is a Canadian company that has developed a new rechargeable battery technology. They have decided to license the technology to larger, established battery manufacturers. Problems have arisen due to the reluctance of the larger companies to purchase these licenses, both because BTI has little credibility and because they fear cannibalization of their main product lines. BTI has responded by attempting to bring new players into the battery industry and licensing them. This strategy has not worked. BTI is currently facing a financial crisis and must evaluate the viability of their licensing strategy. The alternatives are for BTI to manufacture the battery themselves, or to effectively sell out to a major US-based, non-battery manufacturing corporation.