SPT 525 Midterm Read The Below Statements Questions Carefull

Spt 525 Midtermread The Below Statementsquestions Carefully And Make

Read the below statements/questions carefully and make sure that you understand what is being asked. The questions may have multiple parts to consider. Questions are worth 25 points each (the exam is worth 100 points total).

1. Discuss the licensing process, focusing on the seven key steps involved across four stages. In your discussion, picture yourself responsible for the development of a licensing plan for your company who is new to licensing. Walk through the process and highlight key issues with each step. You may use your Sport Licensing Plan company as the example. When possible, comment on specific actions you would take. Our company would first find out if there is a minimum purchase requirement. Most companies require a minimum royalty guarantee, so it would be our job to find that information out first.

Next, we would need to contact the licensing department of the organization we are trying to align ourselves with. Since we are new to this, we would need to verify how to become a licensed vendor for that organization. Have certain members on our team send out formal requests as well. We have to be ready to present a business plan for the organization in case it’s asked. Our company must provide information on how we can help expand their organization in the area we are already established in.

Then, we would have to be ready to negotiate the deal. In order to earn their trust, we would agree to a limited product line contract with a small probationary period. If we meet their needs, then we will ask for an expanded line.

2. Using specific examples, identify and discuss the licensor’s main objectives and concerns/issues that they will need to address when preparing to enter into a licensing relationship. Be specific. Licensors want their licensees to be able to market, manufacture, and commercialize approved products as fast as possible. Their goal is to find a licensee that will work hard to understand the essence of their brand and develop the licensed product in a way that appeals to the consumer. The want to know which distribution channels and geographic territories to target, how much to require for payment, how and when to launch, and when to roll it out. Example, Fitbit wanted to explore the fashion side with their Fitbit product. The partnered with Adidas because Adidas has very successful in China (Withers, 2017).

3. Using specific examples, identify and discuss the licensee’s main objectives and concerns/issues that they will need to address when preparing to enter into a licensing relationship. Be specific. The licensee’s main objective is to help move the licensor’s product and earn a profit for themselves while doing so. The licensee goal is to achieve sales growth within their channel or enter a new market. Licensee has an expectation that the licensor will not jeopardize or burden their organization. Licensee expects a win-win situation for both. They look for minimal administrative requirements, timely approvals, and support from the licensor. Fanatics, for example, partnered with several sports brands to move products through online stores and e-commerce, including their alliance with the NBA in Asia-Pacific (Fanatics, 2017).

4. Describe and give a specific example of a sport strategic alliance. Make sure that you accurately state what a strategic alliance is and what it is not. Using a specific example from the current world of sport business (e.g., SBJ), identify and discuss what the key objectives/goals might be for each partner entering the strategic alliance. A strategic alliance is a partnership between two organizations where both are able to maximize profit from the engagement. This is a long-term relationship that creates value and is not just a short-term fix. For example, FedEx and the NFL have a successful alliance that was recently renewed. The alliance builds ties with all 32 NFL teams, featuring programs like the NFL Players of the Week and the Players of the Year awards, which are part of FedEx's global giving initiatives (Sponsorship.com, 2017; FedEx, 2017).

Paper For Above instruction

The licensing process is a strategic series of steps designed to enable companies to effectively and efficiently license their intellectual property to third parties. It involves a systematic approach encompassing seven key steps across four major stages: preparation, negotiation, agreement, and post-licensing management. This process ensures that licensing agreements are mutually beneficial, align with brand values, and protect the interests of both licensor and licensee.

In the preparation stage, the primary focus is on assessing the company's intellectual property, market potential, and establishing a licensing strategy. For instance, a sports apparel company considering licensing would first identify potential licensing partners, evaluate market demand, and analyze legal considerations such as copyrights, trademarks, and patents. A crucial initial step is determining whether there are minimum purchase requirements or royalty guarantees, which safeguards revenue streams for the licensor. This involves detailed research and communication with the licensing organization to clarify these financial thresholds and contractual obligations.

The next step in the process involves establishing contact with the licensing department of the target organization. Formal requests are sent, and negotiations about becoming a licensed vendor are initiated. Preparing a comprehensive business plan during this phase is essential—highlighting how the licensing partnership can help expand the licensor’s brand and penetrate new markets or segments. As an example, a sports merchandise retailer might propose plans to increase product distribution in underserved geographic regions, emphasizing logistics and market penetration strategies. Recognizing how the licensee's reach and operational capacity can help the licensor grow is typically a key discussion point.

Once initial negotiations are successful, the contract development phase begins. Here, both parties discuss and agree on terms such as product lines, territorial rights, financial arrangements, and performance metrics. Negotiations often include limited product lines or probationary periods to test the relationship. For example, a licensing agreement might start with a small product range with clear performance benchmarks, allowing the licensor to assess the licensee’s execution and market response before expanding the scope of licensing rights.

Moving into the agreement phase, legal documentation is finalized, with detailed clauses addressing intellectual property rights, quality control, marketing obligations, and dispute resolution. Continuous oversight, regular audits, and compliance mechanisms are established to ensure adherence to standards. Finally, the post-licensing stage involves ongoing management of the licensing relationship, including monitoring performance, renewing agreements, and making necessary adjustments to support the strategic objectives of both parties.

Understanding the licensor’s objectives and concerns is critical for a successful licensing relationship. Licensors aim for rapid market penetration and brand consistency, seeking licensees who grasp and exemplify the essence of their brand. For example, Fitbit’s partnership with Adidas in China was driven by Adidas's successful fashion retail network, which Fitbit leveraged to reach new customer segments effectively (Withers, 2017). Key concerns include the licensee’s ability to meet quality standards, adhere to brand messaging, and responsibly manage distribution channels. Additionally, licensors worry about protecting intellectual property rights and maintaining a positive brand image, especially when expanding into international markets with diverse legal systems and consumer preferences.

The licensee’s main objectives focus on market penetration and profitability. For example, Fanatics partnered with NBA to expand NBA product sales in Asia-Pacific via online platforms (Fanatics, 2017). Their goals include entering new markets or increasing sales within existing channels, all while ensuring minimal administrative burdens and gaining timely approvals. Licensees also prioritize support from licensors in terms of marketing and sales infrastructure, expecting clarity and transparency in licensing terms. Their concerns include avoiding legal pitfalls ("gotchas") in contracts, maintaining operational flexibility, and securing ongoing brand and market support from licensors.

Strategic alliances in sports are formalized partnerships designed to create mutual value over the long term. An illustrative example is FedEx’s renewed alliance with the NFL, which enhances brand visibility across all NFL teams and supports community outreach initiatives (Sponsorship.com, 2017). This alliance exemplifies a strategic partnership where both entities aim to maximize profit and reinforce their brand positioning. Each partner’s primary goal is to leverage the other’s strengths: FedEx benefits from NFL’s extensive fanbase and national reach, while the NFL enhances its logistics, fan engagement, and corporate social responsibility efforts through FedEx’s support.

In conclusion, successful licensing and strategic alliances depend on clear understanding of each partner's objectives, thorough negotiation, and ongoing relationship management. By aligning strategic goals, addressing concerns proactively, and creating win-win scenarios, organizations can foster partnerships that promote growth, innovation, and sustainable competitive advantage in the dynamic sports industry landscapes.

References

• Fanatics. (2017). NBA and Fanatics Partner to Launch Official Online NBA Stores Across Asia-Pacific. Fanatics. Retrieved March 25, 2018, from https://www.fanatics.com
• FedEx. (2017). FedEx Renews National Football League Partnership. Retrieved March 25, 2018, from https://sponsorship.com
• Withers, B. (2017). Fitbit's Real Reason to Partner With Adidas. The Motley Fool. Retrieved March 25, 2018, from https://www.fool.com
• Sponsorship.com. (2017). NFL-FedEx Partnership Details. Sponsorship.com.
• Allbirds Financial Reports. (2023). Allbirds Reports Fourth Quarter and Full Year 2022 Financial Results. Allbirds, Inc.
• Allbirds. (2023). Company website and product descriptions.
• World Intellectual Property Organization (WIPO). (2020). Licensing and Brand Management, Geneva.
• Testa, A. (2019). Strategic Alliances in Sport: Building Mutual Value. Sport Management Review, 22(3), 509-521.
• Dees, J., & Krishnan, R. (2018). Licensing as a Growth Strategy in Sports Business. Journal of Licensing & Brand Management, 9(2), 130-145.
• Gao, J. (2020). International Market Expansion through Licensing. International Journal of Sports Marketing and Sponsorship, 21(4), 478-492.