3. Licensing and Business Strategy

Licensing in business allows companies to permit others to use their brand, technology, or products in exchange for payment. This strategy helps businesses expand their reach and earn revenue without directly producing or selling the products themselves. For example, a toy company might license a popular movie character, allowing them to create and sell toys based on that character. This not only boosts sales for the toy company but also helps the movie brand gain wider visibility. Essentially, licensing can enhance growth and profitability while leveraging established brands and innovations.