Gore-Tex Patents Essay Example | Topics and Well Written Essays - 500 words

Gore-Tex Patents - Essay Example At the end of the patent protection phase, the best strategy is to increase R&D investment as well as repositioning the product whose patent is expiring at a lower price point in order to continue to generate sales. 2. The fabric technology of the firm has been utilized in a wide range of products. The company has applied for winter coats, backpacks, shoes, and trousers. The firm has been able to obtain prestigious contracts such as the 1969 contract that enabled the company manufactured cables to reach outer space US-led moon missions. The firm has diversified product portfolio with multiple application which includes: new standards for comfort and protection for work wear and active gear; advanced the science of regenerating tissues destroyed by disease or traumatic injuries; next-generation materials for printed circuit boards and fiber optics; and new methods to detect and control environmental pollution. 3. The emphasis on technology and innovation has helped Gore become a multinational firm whose market value exceeds one billion dollars. Despite the company’s success, the continuous emphasis on technology is a strategy that has drawbacks and increases overall business risk. Once the patent of technology expires any firm can imitate the company’s product without incurring in any of the original research and development investment the firm incurred in. Another major drawback about placing a high emphasis on technology is that these types of products at times become obsolete very fast as other more advanced technology begin to appear in the marketplace. When a company becomes a victim of obsolete technology all the inventory of the product that became obsolete becomes worthless.