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Autodesk, Inc. (NASDAQ: ADSK) is an American multinational corporation that focuses on 2D and 3D design software for use in architecture, engineering and building construction, manufacturing, and media and entertainment. Autodesk was founded in 1982 by John Walker, a coauthor of early versions of the company's flagship CAD software product AutoCAD, and twelve others. It is headquartered in San Rafael, California.

Autodesk has arguably become best-known due to its flagship computer-aided design software AutoCAD. In addition to AutoCAD, Autodesk develops Digital Prototyping solutions[4] to visualize, simulate, and analyze real-world performance using a digital model during the design process. The company also develops Building Information Modeling software to generate and manage building data using a three-dimensional building model. Autodesk also provides digital media creation and management software from film and television visual effects, color grading, and editing to animation, game development, and design visualization.


The first group pertains to those companies that are focusing their branding in the luxury aspects. Prada and Diesel focuses in offering luxury sports products, more specifically apparel. That is the reason why there are only few product lines that are available. Moreover, Prada focuses to the demand of women only. These two companies hold the smallest share of the market because these companies offer few extent of branding as well as it has limited geographic coverage.

The second group is the mediocre group that is consists of Fila, Puma AG and Reebok. The said group has average extent number of branding and average extent of geographic coverage. Unlike the first group, this group of companies focuses on the different demands of customers from vast market segment. Reebok is available to over 140 countries, while Fila are available to approximately 50 countries. The said number of countries can be considered as huge market but if we are going to compare it to the two most important players, which are Adidas and Nike, it has a huge difference.

The last group is the major players in the sports apparel and equipment industry in the world. Both of the companies are offering vast extent of branding and offer huge line of products. Furthermore, both of the company has there distribution and relations to almost every part of the world.


Unlike its leading competitors Nike and Adidas, the company doesn’t have those much financial resources. One of this is the establishments of its subsidiaries in different part of the globe. This helps the company to have an additional financial source. If we are going to look at the situation using the perspective of accounting, we will see that the process of establishing or implementing subsidiaries will be an advantage for the company because there are different substantial tax advantages as well as legal protections. It can help to offset the profits as well as the losses of one part of a given business with another business on the case of the federal tax returns as well as in the state and international level. Furthermore, the profits as well as the losses of the subsidiaries will be taxed in the country where in those subsidiaries are located. That is why Puma AG is getting high profit in their subsidiaries, more specifically, to those countries that implementing low taxes. Another advantage of this resource is that the liabilities as well as the credit claims of the subsidiary will all be locked in the part of the subsidiaries, and it cannot be pressed to the parent company. That is why the assets as well as the credits of the parent company will be maintained and it will still continue its performance and process even the subsidiaries experience financial problems. Furthermore, it will also be helpful in starting the establishment of joint venture where in it is enable partnership of one or more companies that owns a portion of a new business operations. On the other hand, subsidiaries also have its own share of disadvantage, one of this is that the process of accounting that will become more complex and difficult and the process of the legal paperwork can be lengthy as well as expensive.

Puma AG is also has its licensing business that helped the company to produce €35.6 million in royalty as well as commission income during the 2001 (Puma AG.com 2007, p. 10). This enables the company to have more financial resource via the process of licensing or the process where in the company let other company or association to use their technology, processes, activities as well as the name of the product in order to produce new line of product. By doing the said licensing process, it will enable the company to share their knowledge and skills at the same time, earning money. Above all, it can also benefit the company, because it will also serve as an extension to their product line. Royalty fee is also a mass and it is included in the law with accordance to intellectual property. On the other hand, the main disadvantage of this method is that the company, the brand and product that will have the license from the company, will automatically have the image of the licensing company. Any problem with regards to the license product or brand can greatly affect the image of the licensing company. That is the reason why it is important to know the capability of different companies that are wishing to have a licensing agreement.
 
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