The main issue posed in this case is whether Sympathy management ought to continue the relationships with their partners ProPack and POMS, and if they will decided to continue with the human relationships, how to structure them more effectively. Operating in a slumping economic climate, Aegis was worried about their particular level of sales resulting from the partnerships they’d entered into. The key goal intended for Aegis the moment entering into both partnerships was going to bolster sales, and not company got accomplished that. With the prospect of terminating possibly relationship, Aegis would have to discover another technique for improved sales.
With the absence of this strategy, it will probably be more fruitful for the organization to restructure their existing relationships. Taking a look at this case through the concept of proper alliances will assist you to find a technique that will take Aegis out of their downhill slide. For both relationships, Shin guard has created licensing and distribution deals.
POMS and ProPack include combined all their name with Aegis to get separate goods, as well as working together to disperse each other’s products. Sadly, in this condition economies of scale is not going to work to lower costs as a result of nature from the product as well as the industry Shin guard is competing in. Shin guard and its associates have developed a product that is the technological standard because of its category, but can continue to put value towards the product, so that it is desirable and useful in the near future. In my opinion, the simplest way to increase the benefits of these interactions is to engender an environment of trust and communication to work in.
This could mean returning to the legal agreements that are set up to redefine what every single entity wishes out of the agreement, and the best way to go regarding creating sales. If they can do this efficiently I believe the businesses will work better together, creating more quality for prospective customers. This will lead to an increase in sales for their goods.
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