(Solution) - One feature in international selling that is becoming more commo -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

Paper Format: APA

Pages: 5 Words: 1375

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One feature in international selling that is becoming more common is the idea of piggybacking; i.e., tying up with existing sales channels to distribute and sell your products. Examples include Dunkin? Donuts (as the name suggests, the confectionery chain) combining with Baskin-Robbins (the ice-cream chain) units to sell in Canada, Mexico, and Indonesia. According to business proponents of piggybacking, it allows a significant reduction in costs and risks by sharing resources such as dining space, staff, etc., leading to better profitability. However, the concern is that a foreign partner, often chosen as the piggybacking partner (unlike the example just stated) could devote less attention to the foreign product. If the piggybacking is with a unit in the same business, considerable cannibalization can also take place. Discuss the conditions under which a piggyback strategy would be appropriate and under which conditions it would not be appropriate.