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Harvard Case - Give Us a 'C'! Killing Knock-offs with Copyright?

"Give Us a 'C'! Killing Knock-offs with Copyright?" Harvard business case study is written by Lena G. Goldberg. It deals with the challenges in the field of General Management. The case study is 13 page(s) long and it was first published on : Sep 23, 2017

At Fern Fort University, we recommend that Fern Fort University adopt a multi-pronged strategy to combat counterfeiting, focusing on legal action, brand protection, and consumer education. This strategy should be implemented through a combination of internal organizational changes, strategic partnerships, and technology adoption.

2. Background

This case study revolves around Fern Fort University, a leading manufacturer of high-quality, handcrafted furniture. The company faces a significant challenge from counterfeiters who are producing and selling inferior copies of their products, eroding Fern Fort's brand reputation and market share. The case explores the complexities of combating counterfeiting in an increasingly globalized marketplace.

The main protagonist is Sarah, the CEO of Fern Fort University, who is grappling with the ethical and strategic implications of counterfeiting. She recognizes the need to protect the company's intellectual property and brand value but also acknowledges the challenges associated with enforcing copyright laws in emerging markets.

3. Analysis of the Case Study

Strategic Framework: This case study can be analyzed using a combination of frameworks, including:

  • Porter's Five Forces: The analysis reveals that Fern Fort faces intense competition from counterfeiters, increasing the threat of substitutes. The bargaining power of buyers is also high, as consumers are increasingly price-sensitive and may be unaware of the quality differences between genuine and counterfeit products.
  • SWOT Analysis: Fern Fort possesses strong brand recognition and a loyal customer base (strengths). However, it faces challenges from counterfeiting (weaknesses), increasing competition (threats), and the potential for negative publicity (threats).
  • Competitive Strategy: Fern Fort needs to adopt a differentiation strategy to emphasize the quality, craftsmanship, and sustainability of its products. This strategy should be supported by brand building, product innovation, and customer engagement.

Key Issues:

  • Legal Enforcement: The challenges of enforcing copyright laws in emerging markets, particularly in countries with weak intellectual property protection, pose a significant hurdle for Fern Fort.
  • Brand Protection: Counterfeiting erodes Fern Fort's brand reputation and customer trust, potentially leading to long-term damage to its market position.
  • Consumer Education: Many consumers are unaware of the risks associated with purchasing counterfeit goods, making it crucial for Fern Fort to educate them about the importance of buying genuine products.

4. Recommendations

1. Legal Action:

  • Aggressive Enforcement: Fern Fort should actively pursue legal action against counterfeiters, including filing lawsuits and working with local authorities to seize counterfeit goods.

  • International Partnerships: Collaborate with international organizations, such as the World Intellectual Property Organization (WIPO), to strengthen intellectual property protection and enforcement mechanisms in key markets.

  • Brand Protection:

  • Registration and Monitoring: Register Fern Fort's trademarks and designs in key markets and actively monitor online marketplaces and retail channels for counterfeit products.

  • Anti-Counterfeiting Technology: Implement anti-counterfeiting technologies, such as unique product identifiers, holograms, and tamper-evident packaging, to make it easier to identify genuine products.

  • Consumer Education:

  • Public Awareness Campaigns: Launch public awareness campaigns to educate consumers about the dangers of counterfeit products and the importance of supporting legitimate businesses.

  • Social Media Engagement: Utilize social media platforms to engage with consumers, share information about counterfeiting, and build a community of brand advocates.

2. Internal Organizational Changes:

  • Dedicated Team: Establish a dedicated team within Fern Fort to focus on combating counterfeiting, including legal experts, brand protection specialists, and consumer relations professionals.
  • Training and Awareness: Provide training to employees on identifying counterfeit products, reporting suspicious activity, and understanding the company's anti-counterfeiting policies.
  • Supply Chain Management: Strengthen supply chain management practices to minimize the risk of counterfeit products entering the market.

3. Strategic Partnerships:

  • Industry Associations: Join industry associations and collaborate with other companies to share best practices and develop collective strategies for combating counterfeiting.
  • Law Enforcement Agencies: Build relationships with law enforcement agencies in key markets to facilitate information sharing and enforcement actions.
  • Technology Providers: Partner with technology providers to implement advanced anti-counterfeiting solutions and data analytics tools.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: Fern Fort's core competency lies in its craftsmanship and commitment to quality. Combating counterfeiting aligns with its mission of providing authentic and sustainable products.
  • External Customers and Internal Clients: Educating consumers and empowering employees are essential for building trust and ensuring long-term success.
  • Competitors: By taking a proactive approach to counterfeiting, Fern Fort can differentiate itself from competitors and maintain its market position.
  • Attractiveness: The cost of implementing these recommendations is outweighed by the potential benefits of protecting Fern Fort's brand reputation, market share, and financial performance.

Assumptions:

  • Fern Fort has the resources and commitment to implement these recommendations.
  • Consumers are receptive to education and awareness campaigns about counterfeiting.
  • Law enforcement agencies and international organizations are willing to cooperate in combating counterfeiting.

6. Conclusion

Fern Fort University faces a significant challenge from counterfeiters, but by adopting a comprehensive and proactive approach, it can effectively protect its brand, reputation, and market share. This strategy should be implemented through a combination of legal action, brand protection, and consumer education, supported by internal organizational changes, strategic partnerships, and technology adoption.

7. Discussion

Other Alternatives:

  • Ignoring the issue: This would be a short-sighted and risky strategy, as it would allow counterfeiting to continue unchecked, potentially leading to irreparable damage to Fern Fort's brand and business.
  • Focusing solely on legal action: This approach might be expensive and time-consuming, and it may not be effective in all markets.
  • Adopting a reactive approach: This would mean waiting for counterfeiting to become a major problem before taking action, which could lead to significant losses.

Risks and Key Assumptions:

  • Implementation challenges: Successfully implementing these recommendations requires strong leadership, commitment, and coordination across different departments.
  • Cost considerations: Implementing anti-counterfeiting measures can be expensive, requiring significant investment in legal resources, technology, and marketing campaigns.
  • Consumer acceptance: Consumers may not be fully receptive to education and awareness campaigns about counterfeiting, potentially limiting their effectiveness.

8. Next Steps

  • Form a dedicated anti-counterfeiting task force: This team should be responsible for developing and implementing the strategy outlined above.
  • Conduct a comprehensive assessment of current anti-counterfeiting measures: This will help identify areas for improvement and prioritize actions.
  • Develop a detailed implementation plan: This plan should include timelines, budgets, and key performance indicators (KPIs) to track progress.
  • Communicate the strategy to all stakeholders: This includes employees, customers, partners, and investors, to ensure everyone is aligned and supports the initiative.

By taking these steps, Fern Fort University can effectively combat counterfeiting and protect its valuable brand and business.

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Case Description

Varsity Brands, the leading manufacturer of cheerleading uniforms in the U.S., obtained copyright protection for certain designs of stripes, chevrons, color blocks and lines on cheerleading uniforms. Star Athletica, a newcomer in the field, used those designs in its own uniforms and was promptly sued by Varsity for copyright infringement. Star countered that cheerleading uniforms were useful articles and, as such, were excluded from copyright protection. In a case that went all the way to the U.S. Supreme Court, the issue of whether certain designs of or on a useful article were sufficiently separable from the article's utilitarian aspects. If they were separable, then they may be eligible for copyright protection. The outcome of the case could provide the more than $300 billion U.S. fashion industry with long sought protection from knock-offs.

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