THIS IS A STRATEGIC MANAGEMENT COURSE

Note: Limit your responses to a maximum of 250 - 300 words per question.

SCENARIO: Khoah Kim Electrical Equipment Ltd (KKE) in Vietnam is a manufacturer of high-quality electric accessories such as power bars, extension cords and LED bulbs. They want to expand into the North American market but realize that they have no brand strength in that market. KKE has approached Noma Inc., a company specializing in re-branding electrical accessory products under their Noma name. Noma does not buy, sell or distribute any products from any manufacturer. Noma's business model is to license their trusted name (for a royalty) to manufacturers who require brand awareness in a market. If Noma licensed their name for KKE products, Noma would assign a "Noma" product number code to each of KKE's products and provide access to North American distribution channels.

Topic Questions:

Question themes to be explored related to this scenario:

- Strategy components

- Bases of differentiation

- VRIO framework

1. Is KKE's strategy for North America using Noma's brand a good idea? Why or why not?

2. What does Noma have to consider if it allows KKE to use its name?

3. Noma's brand power is a resource they own. Use the VRIO framework to assess how well they are using this resource.