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Dear OpenTuition,
I am struggling with assigning correct risk category to scenario when I produce certain products let’s say in Asia and the manufacturer copycat my product and sells it cheaper in Asia themselves. Please see relevant article in link below:https://www.engineering.com/story/what-should-we-do-about-copycat-manufacturing
Would this be business, reputational or ethical risk to my business?
Many thanks in advance!
This is:
1 A business risk because the copycat will be stealing some sales, impacting the profitability of the business.
2 A reputational risk because the copycat product could be poorly made or even dangerous.
There is no reason why an event cannot create more than one risk and the copycatting could even be a strategic risk because if the product is easy to copy reasonably well and is sold in a country with poor consumer protection or intellectual property laws, how will the business ever overcome it?
I don’t see that ethics comes into it as the company is not being unethical – it is the copycat business which is.
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