JL Racing Case Study

Equally important JL Racing uses celebrity marketing as most recently in their cycling line Nicky Haden. Celebrity endorsement is a highly effective strategy to gain consumer interests and brand loyalty in a cluttered marketplace. Furthermore, as stated in (Hung, K. 2014) celebrity endorsement literature in three ways. First, it delineates aspiration and play as two main types of motives consumers hold toward celebrities in the entertainment process. This complements current studies that regard celebrities as opinion experts and credible spokespersons in their buying decisions. Second, It centers on the encounters between the consumer and the celebrity in various media contexts, such as movies, shows, and games. As studies on celebrity worship

In doing so they are still able to maintain their logo inside the clothing well the logo for Adidas is placed outside of the clothing. A strategic international alliance is a business relationship established by two or more companies to cooperate out of mutual need and to share risk in achieving a common objective (Cateora, Gilly, & Graham, 2011). Furthermore the strategic alliance of Adidas and JL Racing opened up a market for Adidas in which it was weak in well increasing competitive strength with the JL Racing logo. The competitive strengths are that the company’s distinctive competence and product profitability are over those of competitors (Liu, W. K. 2009). Furthermore, in creation with the alliance a company can begin to have access in markets where it has not been able to enter yet. In addition companies could access to the resources and technologies easily with the form of strategic alliance. More over the advantages of a strategic international alliance there are some disadvantages for reasons of as stated in (Liu, W. K. 2009) a strategic alliance is the form of cooperation with their current or future competitors, companies would worry that the strategic alliances provide their competitors convenient way to acquire low cost of technologies and access market. Strategic alliances would strengthen the capability of their competitors and

Expanding internationally has helped in increase sales and profits, well providing stable operations and new product designs. Therefore, JL Racing does not believe in laying off their workers, in order to be successful in refraining from laying off they are able to continue with production outside of the American rowing season due to the different rowing seasons internationally. Furthermore new product designs have entered into the American market where colors where boring there is a trend of the use of pastels and more vibrant colors that the Europeans use in the American market. JL Racing major concern is the exchange rate between the different countries, the added cost incurred by exchange rate fluctuations on day to day bases should be considered when pricing products (Cateora, Gilly, & Graham, 2011). Failing to recognize the risk can lead to the risk of a company’s market value changing from unexpected exchange rate fluctuations. When the currency exchange rate rises or falls, the cost of production and sale price can be affected by the change which may in turn affect profits (Hou,