The alliance with aids will be an excellent opportunity for growth at Polar. It seems that growth potential Is somewhat unlimited as they can target new market segments outside their niche and move Into many new markets. However, their resources are limited, so the partnership with aids will be a critical aspect of future growth. Aids will bring Polar to their many flagship stores around the globe. Also, Polar can ride along into vast distribution network.
Pros and Cons of the Partnership
Lastly, the international name recognition of aids will help Polar to gain more notoriety and perhaps help them reach outside of their core group of athletes to the argue group of everyday fleetness enthusiasts. 2. Pros: ?-?¬g?S Polar name recognition and visibility will increase with sales in the aids stores and the aids distribution network ?-?¬S?S Complementary products can increase sales of both aids and Polar equipment I.
For example, if a customer chooses to buy a pair of Dallas shoes that can hold the Polar Stride Sensor, the customer will be more likely to buy the Polar Heart Rate Monitor to complement the shoes ?-ҐG?S Cross marketing opportunities allow the companies to work together to advertise their products this can reduce marketing costs for both and attract sat aids customers to try a Polar product (and vice versa) ?-?¬S?S Loyal Polar customers have the option to buy clothing and accessories to complement and increase the functionality of their Harms I.
Partnership allows Polar to offer these items to their customers without having to Independently make the Investment Into apparel Cons: ?-ҐG?S A much smaller partner like Polar could be dominated by aids in partnership agreement issues I. Who owns the intellectual property rights to Jointly- developed products? I’. Can technology or ideas be offered to other companies outside the agreement?
Aids could try to team up with an industry leader like pod to make their shoes function with more products ?ВЇ?¬S?S The close partnership could be setting Polar up to be bought out by Dallas ?-?¬S?S Aids could learn so much about the technology that the company may decide to develop a competing product after the partnership terminates 3. If the alliance fails, it is unlikely that aids will be interested in acquiring Polar. We do not see the products being successful, and this is likely to be the downfall of the partnership.
The Integrated tops are not attractive due to the large black Polar ringmaster that has to be connected on the outside of the clothing. Athletes and exercisers who spend a premium for high-quality fitness apparel want the clothes to help them look good, and this clothing sure Further, Polar offers plenty of heart rate monitors that do not require a special sensor inside a user? shoes or an ugly transmitter on the outside off shirt. Polar customers are likely to choose these products Instead of buying the integrated Dallas apparel after already spent over $200 on the HARM. We do not think the partners Is Kelly to last until 2