Question 1: What are possible strategic partnerships that the company could develop that would help promote sales of the Ladybug?
The Ladybug for cell phones has been developed by the company Zerofon. It has become a great brand with huge brand equity and product demand in the entire world. The product is a simple device shaped like a ladybug which sticks to the cell phone and provides complete protection from the electromagnetic radiations emitted by the cell phone. The device cancels the electromagnetic field generated by the cell phone and also reduces the heat generated within it (Hopkins, 2012). Consequently, anyone with the device on the cell phone can even put the phone in their breast pockets provided it has not been set on vibration mode. Further, the device is available in pink, red, and white colors, at a varying retail price of $11.97 to $12.5 (Cosby and Company, 2009).
Today, additionally successful businesses and companies are adopting ways of strategic partnerships to achieve objectives which could not be attained otherwise. Consequently, these strategic partnerships have even seen the collaboration agreements and partnership agreements among competitors. These cooperation agreements and strategic alliances between competitors in the market are known as coopetitions. We do not recommend any coopetition for Zerofon as it would not be possible. The competitors in the market have their own products that are perfect substitutes for the cell phone Ladybug. These competing products are although less popular and attractive than the Ladybug, yet pose some competition in the high-technology products for preventing electromagnetic radiation from cell phones.
The most common form of strategic alliances today is the joint venture. The joint ventures between or among partners exist on a continuum that ranges from loosely-coupled joint ventures to moderately-coupled joint ventures, to tightly-coupled joint ventures. The joint venture brings the resources of the partners together along with pooling of their expertise and core competencies.
Zerofon must enter into a joint venture agreement with one of the online sellers of technology products (Wallace, 2004). Zerofon must enter into a joint venture agreement with Gunnar, an online technology eyewear seller. This new joint venture will pool the resources from the two companies to start a new business that sells online technology products including Gunnar eyewear, Zerofon Ladybugs, and other new technology products which will be researched and developed by the joint venture. Zerofon and Gunnar could form a joint-venture with an ownership ratio of 1:1. This joint venture will provide the necessary online selling expertise and brand equity to Ladybug which was not available before. Also, Gunnar will be able to diversify with the inclusion of other Zerofon products, in addition to their online sales of their own products.
In addition, the Zerofon company will engage with many other companies to make them strategic partners in various marketing activities. The company will co-market its Zerofon Ladybug product with these companies. These companies will include the Zerofon Ladybug in their own product packages...