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Polar Adidas Case Study
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Polar Adidas Case Study


A case study on the partnership of Polar Heart Rate Systems and Adidas from 2005 until 2007

A case study on the partnership of Polar Heart Rate Systems and Adidas from 2005 until 2007

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  • 1. Polar Adidas
    Brian Smith · Jo Anne Lotfallah · James McCartneyJosh Dafoe · Nastania Mullin · Jason TaylorTrevor Dufresne
  • 2. http://www.youtube.com/watch?v=196Y90fl1uA
  • 3. Agenda
    Problem Identification
    Situational Analysis
    Organizational Objectives
    Implementation Plan
    Q&A Period
  • 4. Introduction
    Established in 1977, Polar is a tech driven leader in sports medical science
    Employs over 1 200 people worldwide, has 26 subsidiaries globally, and manages a distribution network supplying over 35 000 retail outlets.
    First heart rate monitor developed in 1982
  • 5. Problem Identification
    Contradicting sizes of both companies result in a strain on the relationship
    Lack of adequate resources on Polar’s end
    Very tight schedule and deadlines for releasing the finished product
  • 6. Problem Identification
    Engineering is shared between the two
    Asks the question: Who owns what?
    The rights for Project Fusion in the air as a result
  • 7. Situation Analysis - Strengths
    Influx of R&D capital for product diversification
    Access to market data once unobtainable
    Exposure to new markets
  • 8. Situation Analysis - Strengths
    Increased cash balance of foreign currency
    Ease of movement within Europe
  • 9. Situation Analysis – Weaknesses
    Size differences of companies could create difficulties and strains
    Production capabilities to match the demand
  • 10. Situation Analysis - Weaknesses
    Risk of downgrading quality of current product
    Lack of resources to deal with set-backs and failures
  • 11. Situation Analysis - Opportunities
    Influx of R&D capital for product diversification
    Access to a market once beyond Polar’s reach
    Exposure to new markets that will only benefit Polar
  • 12. Situation Analysis - Opportunities
    Entry point into Europe
    Backdoor into foreign markets through German trade agreements
    “Top-Grade Seal of Approval”
  • 13. Situation Analysis - Opportunities
    High brand equity of adidas can increase Polar’s brand equity
    Increase in exposure
    “Big Brother Effect”
  • 14. Situation Analysis - Threats
    Ownership and rights to the product
    “Predators” trying to steal/sabotage Polar’s technology
  • 15. Situation Analysis - Threats
    The difference in sizes of both companies
    Marketing strategy decisions: Where does Polar fit?
  • 16. Organizational Objectives
    PE aims to improve the quality of life for its consumers
    Wants to establish itself with the already successful adidas brand with its heart monitors
    Increase brand loyalty and company equity
  • 17. Organizational Objectives
    A means of gaining brand awareness
    The technology can be used for other applications
    Learn from adidas
    Gain assistance in development
  • 18. Alternatives
    Do nothing
    Joint Venture  Establish a third company
    Acquistion by adidas
  • 19. Recommendations
    Take a more controlled approach to future textile alliances
    Continue to be a technological trend-setter
  • 20. Recommendations
    Staff training at the retail level
    Finland expansion on Research and Development
    Assembled products
  • 21. Recommendations
    The Michael Porter Value Chain
  • 22. Implementation Plan
    Address the issues of exclusivity
    Address the joint marketing efforts
    Media, Joint Websites, Etc.
    Areas regarding management must be determined
  • 23. Question Period
    Do you agree with our assessments?
    What do you think this alliance became?
    What are the market positions of these two companies today? Why?
  • 24. Thank You