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. pts [Alrbnb] American tech companles that use business models based on scale h

ID: 435280 • Letter: #

Question

. pts [Alrbnb] American tech companles that use business models based on scale have found China to be an attractive market. Groupon was concerned about thelr understanding of local culture and laws, and decided to partner with Chinese tech company Gaopeng which later falled. Alrbnb Instead decided to open a separate Chinese home-sharing start-up, Alblying, which is fully controlled by the Chinese branch of Airbnb in Beiljing. Groupon's market entry strategy is best characterized as Tencent to form online deal marketplace while Airbnb Is using aln) strategy O licensing: direct Investment joint venture; direct investment exporting; joint venture O direct investment; exporting O joint venture; licensing

Explanation / Answer

1) Joint investment, Licensing

The Groupon collaborated with Chinese firm so is a joint investment whereas Airbnb is termed as licensing as the entire control is with Chinese firm under Chinese branch

2) Customer service

It is very essential to have timely service, proper communication and convenience when dealing with customer to have long term business advantage

3) Prestige pricing

The high price of the watch makes it exclusive and very rare in the market. So, it is termed as prestige pricing