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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 company's 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 company's 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 company's ability to become an effective lobbying organization is rather restricted and this is because of the company's 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,...
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.
References:
Berger, C., 2008, Strategic sports marketing -- the impact of sport advertising upon consumers: Adidas -- a case study, GRIN Verlag
Hall, R.L., Wayman, F.W., 1990, Buying time: moneyed interests and the mobilization of bias in congressional committees, the American Political Science Review, Vol. 84, No. 3
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
Growth through product development, Business Link, http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1079050015 last accessed on December 15, 2010
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