This implies the need to identify each member and keep a track of his access to the company services.
The complete elimination of free rider possibilities by not creating any free services. This solution nevertheless is not sustainable from a marketing standpoint as it does not provide the prospective customers with the ability to test the companys services, and it as such does not raise consumer familiarity or interest.
The partial elimination of the free services with the division of a single service into an initial free part, and a paid continuation.
Based on the characteristics of each of the three alternative solutions, the final recommendation is that of providing demonstrative free services, which introduce the customer to the companys services and generate interest and demand. In other words, the third alternative should be selected.
d) Lobbying organization
By becoming a lobbying organization, the Sports Fan Coalition would gain an increased ability to influence the decisions of policy makers (Wright, 1989). In other words, it would reveal a real ability to influence legislations in favor of the sports entertainment industry. Today however, the companys ability to become an effective lobbying organization is rather restricted and this is because of the companys restricted size and importance within the field.
However, once it implements its growth strategies and becomes a stronger economic agent, it stands increased chances of enhancing its capabilities as an efficient lobbying organization.
This virtually means that it would reemerge as a reliable organization, able to gain the support of other players in the industry, and also able to attract the attention of political parties.
Overall, the Sports Fan Coalition is a reputable player in the sports entertainment industry, with tremendous potential. For the immediate period however, it is necessary for it to develop and implement a complex strategic endeavor, focused onto three directions — expanding the operations and the size, attracting new members and mitigating the free rider problem. Each of these objectives can be attained through particular organizational strategies, such as growth through product development or market expansion, new positioning strategy, the replacement of free services with demonstrative solutions, and finally, the strengthening of the organization to develop strategic partnerships within the industry and build power to influence legislators.
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Wright, J.R., 1989, PAC contributions, lobbying and representation, the Journal of Politics, Vol. 51, No. 3
Yoho, J., 1995, Madison on the beneficial effects of interest groups: what was left unsaid in “federalist” 10, Polity, Vol. 27, No. 4
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