Edison 2 - Corporate Innovation Study

Team 25: PeakProject Corporate Innovation Study
Edison 2: Corporate
Innovation Study
By PeakProtect
Publisher: Rutgers University Professional Science Master’s Program,

Piscataway NJ
[email protected]
19 March 2024
Table of Contents
Executive Summary:.............................................................................................................................................................................................................................................
Two Case Studies..................................................................................................................................................................................................................................................
Case 1: Atomic Austria GmbH....................................................................................................................................................................................................................
Case 2: Outdoor Master..............................................................................................................................................................................................................................
Comparison: To Edison’s model, and between the two cases..............................................................................................................................................................................
Capstone Company strategy, in light of Case Studies:........................................................................................................................................................................................
The Appendices.....................................................................................................................................................................................................................................................
Appendix A: Porter’s Framework...............................................................................................................................................................................................................
Executive Summary:
PeakProtect will look at two potential competitors through case studies within the snow sports
helmet industry. The first case study will focus on the large company Atomic Austria GmbH.
The second case study will focus on Outdoor Master. Then a comparison of these two companies
to each other and Thomas Edison’s innovation model will be completed. Finally, a
comprehensive strategy based on Porter’s Five Forces will examine how PeakProtect will stand
out from the competitive business landscape of the snow sports helmet industry.
MBS600 SP24 Rutgers University Page 1

Two Case Studies
Case 1: Atomic Austria GmbH
The largest snow sport helmet manufacturer in the world is Atomic Austria GmbH. The
company was founded in 1955 in Altenmarkt, Austria by Alois Rohrmoser. The company has
over 1000 in-house employees. Atomic produces snow sports equipment and protection such as
ski bindings, ski boots, helmets, goggles, and skis. In fact, each year the company produces
400,000 pairs of skis. The company markets products to both recreational skiers and professional
snow sport athletes and has offerings for men, women, and children. Atomic holds the values of
innovation, authenticity, and a pioneering spirit as part of its core brand identity.1
While the company specializes in a large array of snow sport equipment and apparel, it is the
Atomic’s helmet production that has attracted PeakProtect to investigate this company further as
a great case study example. The company separates its snow helmets into two broad categories:
Skiing and Touring. The Skiing helmets are designed for either recreational skiers or sports
professionals, while the company’s touring helmets are focused on being lightweight for
individuals who desire to ski for long distances. Atomic has introduced a number of innovative
helmet technologies in recent years and has set the gold standard of what ski helmets are capable
of in the current era2. Some of the technologies Atomic has recently integrated into their snow
helmet innovation pipeline include: AMID, Shocksense, Photochromic Lens Technology, HD
Lens Technology, and Anti-Fog Lens.
Atomic’s new helmet protection technology consists of AMID and Shocksense. AMID, or the
Atomic multi directional impact deflector, is a dual density foam damping system integrated
within many of Atomic’s most recent helmet designs3. The AMID system is fixed to the helmet's
core and moves in all directions when an impact occurs. Atomic claims the AMID system offers
up to 40% more impact protection than industry safety standards. Atomic's Shocksense
technology links helmet impact data to the customer's smartphone via Bluetooth4. The data
transmitted provides evaluations of head impacts, encompassing details regarding location, force,
and severity of the impact. If the helmet is found to suffer a severely high impact, then the
helmet has the ability to transmit an SOS alert to emergency services.
Atomic also offers three unique innovative lens technologies for some of its most recent helmet
designs. One of these innovations is the Photochromic Lens Technology which adjusts the tint of
the lens in response to changes in light conditions5. This feature protects skiers from extreme
changes in light. The cylindrical double has the ability to pick up more light as conditions get
1
Brand | Atomic USA. (2021). Atomic.com. https://www.atomic.com/en-us/brand
2
Inside the Atomic ski factory. (2023, March 23). Amer Sports. https://www.amersports.com/newsroom/inside-
the-atomic-ski-factory-the-making-of-a-perfect-pair-for-powder/
3
Atomic AMID | ski helmet technology. (February 3, 2020). Www.youtube.com. Retrieved March 19, 2024, from
https://www.youtube.com/watch?v=vlDoxHggYuc
4
Shocksense | Atomic International. (2024). Atomic.com. https://www.atomic.com/en/shocksense
5
FOUR PRO HD PHOTO: NEW ATOMIC GOGGLES FOR PROGRESSIVE SKIERS. (2023, February 1). Mynewsdesk.
https://www.mynewsdesk.com/atomic/pressreleases/four-pro-hd-photo-new-atomic-goggles-for-progressive-
skiers-3230653

darker and dissipate light as conditions get brighter. Another innovation to lens technology
Atomic offers in its novel helmet designs is its HD tech. The HD lens technology delivers light
contrast in different weather conditions6. The HD tech increases the color, clarity, and contrast of
the customer’s visual field. Finally, Atomic also integrates Anti-Fog Lens technology into many
of its helmets. The company claims that this technology offers “<8x more anti-fog properties
than industry standards” due to its ability to withstand 240 seconds in controlled lab fog tests7.
All of these new helmet technologies and products have originated fairly recently with the
company (<5 last years). They all originate internally from the company and have the applicants
listed as ATOMIC Austria GmbH for all patents8. Atomic invests heavily in research and
development, and employs engineers and designers to constantly explore new materials,
construction techniques, and product designs9. The company collaborates closely with sponsored
professional athletes to get direct feedback on performance needs. It utilizes advanced computer
modeling, wind tunnels, and extensive on-snow testing to refine and validate new concepts
before bringing them to market. Many of the products are manufactured in Austria, however the
company also has major manufacturing facilities in Bulgaria, Ukraine, and the United States 10.
Once in the market, the company maintains a detailed CRM system by interacting with
customers and asking for feedback. The company has filed dozens of patents under its brand and
has patents dating back to the mid 20th century11.
Atomic grows its market size through a number of innovative strategies and pipelines. Atomic
consistently launches new products into the market to attract new potential buyers. These new
products often raise performance standards for professional athletes while also allowing the
company to charge premium prices. Due to Atomic offering a wide range of ski equipment and
apparel, the company has a wide horizontal share of the customer's winter sports market. The
company also pursues geographic expansion and is currently in 49 countries12. Most of its
customer base originates from Central and Northern Europe, however the company also has a
foothold in emerging markets that have expanding ski cultures such as China and Japan. Finally,
the company receives major endorsements from sponsored athletes including Hermann Maier,
Julia Mancuso, Mikaela Shiffrin and Marcel Hirscher13. All of these strategies maintain brand
awareness and allow the company to continue to grow.
6
Ski Goggle Lenses | Atomic.com United States. (2023). Atomic.com.
https://www.atomic.com/en-us/shop/sports/alpine/goggles/lenses.html
7
Alpine Ski Goggles & Accessories Men | Atomic Shop United States. (2023). Atomic.com.
https://www.atomic.com/en-us/shop/men/men-alpine-skiing/ski-goggles.html
8
Patents Assigned to ATOMIC Austria GmbH - Justia Patents Search. (n.d.). Patents.justia.com. Retrieved March 19,
2024, from https://patents.justia.com/assignee/atomic-austria-gmbh
9
Inside the Atomic ski factory. (2023, March 23). Amer Sports. https://www.amersports.com/newsroom/inside-
the-atomic-ski-factory-the-making-of-a-perfect-pair-for-powder/
10
Locations | Atomic USA. (2024). Atomic.com. https://www.atomic.com/en-us/locations
11
List of Atomic Austria Gmbh patents | 46 results. (n.d.). Golden. Retrieved March 19, 2024, from
https://golden.com/query/list-of-atomic-austria-gmbh-patents-BMAAY
12
Strategy | Atomic International. (2023). Atomic.com. https://www.atomic.com/en/strategy
13
Legends | Atomic USA. (2024). Atomic.com. https://www.atomic.com/en-us/legends

Atomic does not directly state if it uses a stage gate method to manage its new products online.
However, due to the large quantity of novel technology it produces for the snow sports industry
every year, it is safe to assume that they use a process that is very similar to the stage gate
method. The company looks at some of the most common problems and concerns skiers report
when interacting with snow sports equipment. The team generates ideas on how to solve it,
scopes and builds a business case around the innovative idea, develops and tests product designs,
and finally launches the finished design. Due to the company’s high output of new products and
its understanding of the importance of safety for its customers, Atomic most likely spends
considerable time researching and developing its new products before launching.
Atomic launches a number of projects every year. In 2023 and 2024, the company launched 7
new products. These products include Backland touring skis, Hawx Ultra XTD 130 BOA Boots,
Four Pro HD PHOTO goggles, Backland XTD Carbon 120, REDSTER G AND S Skis,
REDSTER X Skis, and REDSTER Q Skis14. Most of the company’s innovations are centered
around ski equipment for athletes and touring, however they also provided new products such as
goggles and boots last year. While the company does not generate a new helmet design every
year, the company has recently made innovations in its snow helmet options over the last 5 years
such as AMID and Shocksense.
Atomic Austria GmbH parent company is the Finnish multinational sporting equipment company
Amer Sports Group15. Atomic was sold to Amer Sports Group in 1994 after the company had
faced years of financial difficulties16. Amer Sports Group also owns Arc´teryx, Peak
Performance, Armada, Enve, DeMarini, Wilson, Suunto, Precor, Volant and Salomon. Amer
Sports Group is owned by the Chinese companies Anta Sports, FountainVest Partners, Anamered
Investments, and Tencent as of 201817. In 2023, Amer Sports Group had a reported revenue of
$4.37 billion. In January of 2024, Amer Sports Files for IPO and plans to trade on the New York
Stock Exchange this year. Atomic revenue was $160.7 million in the first nine months of 2023
and was up 2.4% compared to the prior-year period18. According to the United States SEC F1-
Form for Amer Sports Group in January of 2024, Amer’s breaks down their revenue streams into
three main categories: Ball & Racquet Sports, Technical Appeal, and Outdoor Performance 19.
The outdoor performance category includes Salomon, Atomic, Armada and ENVE. For the first
9 months of 2023, Outdoor Performance reported a revenue of USD $1,144.4 million. The
breakdown of revenue by channel was Wholesale (USD $2,051.1 million), Retail (USD $556.9
million), and E-Commerce (USD $445.4million) for all three categories.
14
ATOMIC PRODUCT HIGHLIGHTS 2023/24. (2023, October 4). Mynewsdesk.
https://press.atomic.com/pressreleases/atomic-product-highlights-2023-slash-24-3234594
15
Atomic Skis. (2022, August 28). Amer Sports. https://www.amersports.com/brands/atomic/
16
Austrian afterglow. (2003, January 6). Forbes. Retrieved March 19, 2024, from
https://www.forbes.com/global/2003/0106/026.html?sh=76f2520f3ffb
17
Taloussanomat. (2018, December 7). Kiinalaistaustainen konsortio tekee 4,6 miljardin euron ostotarjouksen
Amerista. Ilta-Sanomat. https://www.is.fi/taloussanomat/porssiuutiset/art-2000005924747.html
18
Updated: Arc’teryx, Salomon, Atomic Parent Company Amer Sports Files for IPO. (2024, January 4).
Thedaily.outdoorretailer.com. https://thedaily.outdoorretailer.com/news/brands-and-retailers/arcteryx-salomon-
atomic-parent-company-amer-sports-files-for-ipo/
19
tm2322981-10_f1 - none - 74.3175254s. (2024, January 4). Www.sec.gov. Retrieved March 19, 2024, from
https://www.sec.gov/Archives/edgar/data/1988894/000110465924001168/tm2322981-10_f1.htm#tMDAA

Case 2: Outdoor Master
One of the most dynamic companies in the winter sports helmet industry as of today is certainly
Outdoor Master. The company that has origins dating back to only 2015 is currently on the rise
in popularity amongst those that participate in both skiing and snowboarding. Outdoor Master is
currently a more niche company in its own industry and is fairly young, but the potential it
contains sees it being able to compete with staples of the winter sports helmet industry such as
Atomic and Oakley.20 With winter sports set to increase in popularity significantly (379% for
skiing and 180% for snowboarding) the current market Outdoor Master is focusing on is proving
to be crucial to their future success.21
Although downhill winter sports helmets are Outdoor Master’s flagship products, they also
produce helmets for cycling and rock climbing. In addition to helmets they also manufacture
sunglasses and sell equipment for water sports like steady water boards. This is a pattern that is
followed by the majority of large companies in Outdoor Master’s industry of sports equipment.
To be successful companies will begin by focusing on a single area of expertise (in Oakley’s
case it was a motorcycle grip) and then branching out into other sports. For Outdoor Master’s the
area of expertise was in winter sports. The founder Leo Liu was fed up with the current prices of
winter sports equipment as it sometimes inhibited the average consumer from enjoying winter
sports due to the financial dedication required to participate. He is quoted as saying, “some
winter goggles cost well over $200”22. This he found to be an issue as the manufacturing costs to
produce a pair surely were nowhere near that price. So, he sought out to design an affordable pair
of goggles making it so the average consumer would not need to struggle to purchase it. In 2015
the OTG Snow Goggles were listed on Amazon and by the end of 2016 1 million purchases had
been made with the average rating of the products being 4.75/5. The success sparked the idea to
build winter sports helmets and the company only continued to grow from there. Having an
Amazon Storefront can actually increase sales by over 30% which certainly contributed to
Outdoor Master’s success23.
Given the industry Outdoor Master is in it is essential that the helmet design allows the user to
participate in winter sports knowing they are less likely to receive an injury (especially a
concussion). There are five different helmets produced by Outdoor Master; they include the
Kelvin Ski Helmet, Diamond MIPS Ski Helmet, Diamond II MIPS Ski Helmet, ELK Ski
Helmet, and Lazurite Ski Helmet. The Outdoor Master’s most popular winter sport equipment is
the Kelvin helmet currently retailing for $40 compared to other ski helmets manufactured by the
popular brands in the industry and this is a significant difference in price as base product helmets
20
“Our Story.” OutdoorMaster, outdoormaster.com/pages/our-story.
21
Gates, Samantha. “Tracking Your Winter Sports Activity Is Becoming Increasingly Popular.” SnowBrains, 5 Feb.
2024, nowbrains.com/tracking-your-winter-sports-activity-is-becoming-increasingly-popular/.
22
Ma, Yiwanning. “8th Anniversary: A Letter from Founder of Outdoor Master.” OutdoorMaster, OutdoorMaster, 6
June 2023, outdoormaster.com/blogs/om-blog/8th-anniversary-a-letter-from-founder-of-outdoor-master.
23
SupplyKick. “Increase Sales with Amazon Stores.” SupplyKick, www.supplykick.com/amazon-
stores#:~:text=Also%20known%20as%20Amazon%20Storefronts,30%25%20increase%20in%20Amazon%20sales.

typically retail for well over $100. Implemented in this base model helmet is the ABS shell &
shock-absorbing EPS core, this is certified by the ASTM, a product certification and with the
Safety Equipment Institute ensuring equipment is up to industry standards and will actually
protect the wearer24.
Outdoor Master does also sell higher-end equipment in the Diamond MIPS Ski Helmet which
still retails for under $100 (at $90) and incorporates the industry standard Multi-directional
Impact Protection System (MIPS) design. How this helmet specifically protects the user is by
allowing the head to rotate inside the helmet reducing rotational movements that would typically
transfer to the brain and drastically reducing pressure put on the neck during a collision. This
helmet is built in layers to keep the friction experienced by the user at a minimum.
Although there are no features implemented in any of the products designed by Outdoor Master,
that does not mean their company is lacking in the innovation department. The innovation they
brought to the sports equipment industry and more specifically the down hill winter sports
industry is the distribution of reasonably priced equipment.
The success Outdoor Master has had comes down to their ability to sell their helmets at such a
reduced cost compared to its competitors with extremely similar, if not the exact same safety
ratings. Given that more than half of skiers annual income is over $100,000 it comes as no
surprise that most people cannot afford the required costs to participate in the sport25. What
Outdoor Master is doing is tapping into the market of people who would like to ski that are not
financially advantaged. This ability has landed them great success on Amazon’s website which is
a fantastic position for any company on the rise to be in. This success is extremely sustainable as
interest in skiing is steadily increasing and there will always be people in less fortunate financial
situations that will be required to purchase cheaper equipment26. New revenue typically comes
from people that are beginners to the down hill winter sport scene as the products sold by
Outdoor Master are inexpensive and still provide protection. It is also important to note that
Outdoor Master has recently become the official supplier to the U.S. Ski Team27. This is an
essential component of the company’s successful marketing and proves that even new and
smaller companies can find success when they identify their market.
Comparison: To Edison’s model, and between the two cases
Both Atomic and Outdoor Master have embraced these lessons, while staying true to their brand
identity. On one hand, Atomic has embraced innovation and growth, expanding to all areas of the
snowsports market. The company is constantly developing and working to improve the products
they offer, allowing them to achieve large profit margins and name recognition within the
industry. On the other hand, Outdoor Master has embraced the lessons of Edison by recognizing
24
“Certification - Products & Services.” ASTM International - Standards Worldwide, www.astm.org/products-services/certification.html.
25
Team, Kenver. “The State of Us Skiing and Snowboarding: 2022-2023.” Kenver, 30 Aug. 2022, kenver.com/blogs/news/state-snow-sports.
26
Bring More Diversity to Skiing, www.powder.com/stories/extend-the-family.
27
Blehhh, Mayi. “Outdoor Master Is Now an Official Ski Goggles and Helmet Supplier For.” OutdoorMaster, 21 Sept. 2022,
outdoormaster.com/blogs/om-blog/outdoor-master-is-now-the-official-snow-goggles-and-helmet-supplier-for-the-united-states-ski-and-
snowboard-association.

how they fit into the larger market picture. Instead of spending time and money innovating the
technology that goes into their products, they have chosen to focus on innovations within the
supply chain and manufacturing processes. This choice sets them apart from Atomic and other
major competitors within the snowsports industry, but allows them to fill an underserved market
need.
Atomic primarily finds success in their depth of scale and their ability to innovate within the
field. The company has been able to make a name selling equipment for all snowsports needs for
several decades, and with that longevity they have been able to create brand recognition and
develop a reputation for producing quality products. As the company sells almost all of the
equipment a recreational skier would need, they can present themselves as a “one stop shop” to
consumers. This has allowed them to generate large revenue streams, which they have in turn
invested into new product development and innovations. Atomic has successfully developed
several innovative products, and has helped to push snowsport helmet technology forward.
Research, design, and innovation have become strengths of Atomic, and they use this to help
retain repeat customers while attracting new ones. As they have developed a longstanding culture
of quality innovation, consumers feel confident investing in the products they produce.
Atomic’s primary weakness lies in their lack of independence and close competition. Atomic is
owned by Amer Sports Group, which owns several other snowsport equipment and apparel
companies including Salomon and Armada. These are direct competitors of Atomic, and while
they all operate as separate entities they are owned by the same larger corporation, and it is
unknown how much influence Amer Sports Group may have on the individual organizations.
This close competition, both with fellow owned companies and with others, is a weakness of
Atomic. The snowsports industry, while large, is not infinite, and Atomic is competing with
numerous other companies for consumer attention. While their innovations do help to set them
apart, their close competitors are often developing innovations of their own to compete in the
same market segments.
Outdoor Master’s strength is in their ability to find an untapped space in the snowsports market.
Through supply chain and manufacturing innovations, Outdoor Master has been able to offer
affordable snowsports gear, many of which retails for half the price of other competitor products.
The company has worked to find ways to further reduce overhead and development costs, and
has chosen to pass those savings onto customers. This allows Outdoor Master to both fill the
unmet market space of having lower cost equipment options, while allowing them to create an
opportunity for new customer acquisition. Snow sports can be expensive, however having lower
priced equipment options creates an opportunity for individuals new to the sport to try it by
lowering the financial barrier to entry. This business approach is beneficial to Outdoor Master,
and will help them to stand out within the industry.
Outdoor Master’s primary weakness is in their lack of technological innovations or higher-priced

options. The top-tier helmet sold by Outdoor Master retails for $90, still far less than the average
price of low and mid-tier competitor helmets. Outdoor Master has chosen to focus on
affordability, and has had to sacrifice technology innovation within the product as a result. The
lack of cutting edge technology may deter some customers from the product, and could result in
Outdoor Master being only viewed as the “budget helmet” option. This lack of innovation

extends to other products - unlike many snowsports companies, Outdoor Master does not sell
skis, snowboards, boots, or much of the other equipment necessary for the sport. As a result they
are unable to compete as a “one stop shop” for all of an individual’s equipment needs.
Upon comparison to each other, both Atomic and Outdoor Master have clear areas where they
stand out. Atomic has the advantage of being a longstanding, major competitor within the
snowsports equipment market. They have been able to use their reputation of providing high
quality goods to regularly innovate and push technology within their products forward. Atomic
has the clear advantage of being able to market themselves to consumers as a company that can
supply high quality, cutting edge products that fulfill all of an individual's equipment needs.
Outdoor Master, on the other hand, has the advantage of holding a unique position within the
market. They have been able to market themselves as a low-cost yet high quality option, and are
able to appeal to a wide range of consumers. Outdoor Master also has the advantage of appealing
to an untapped consumer market, leaving them with an exponentially large pool of potential
customers.
When Atomic and Outdoor Master collide, we predict that their strengths will align to help
minimize their individual weaknesses. Outdoor Master will benefit from Atomic’s long history
and culture of innovation, while Atomic will benefit from the unique supply chain Outdoor
Master has created and their expanded customer base. Combined, the two will have the ability to
produce a line of comparatively low-cost, innovative products that can fill all of a consumer's
snowsport equipment needs. Developing a full suite of products that take advantage of recent
technological innovations while maintaining a relatively low overall cost will allow the
combined company to appeal to a large number of current and future snowsports enthusiasts. In
the spirit of Thomas Edison, a collision will allow both companies to successfully dream big
while maintaining a realistic understanding of current market conditions.
Capstone Company strategy, in light of Case Studies:
After assessing two competitors PeakPortect will face as it enters this market, an examination of
what should be done with this information should follow. More specifically, the questions of
how competitors will be dealt with in this competitive business environment, how PeakProtect
will build a sustainable competitive advantage, and what course of action will be taken when
PeakProtect and its’ interest run up against these competitors. These questions will be answered
in the context and framework of Porter’s Five Forces with the incorporation of information
obtained through the thorough analysis shown earlier in this document of two competitors,
Atomic GmbH and Outdoor Master, as well as past examinations of other competitors. A
detailed graphic of Porter’s Five Forces can be seen in Appendix A.
Peak Protect, as a new entry to the market of athletic helmets, specifically with winter sports,
will need to analyze those things which successful entrants have done, and unsuccessful ones
have not. As a company heavily reliant on our intellectual property the threat of new entrants is
not something that can be ignored. As a new entrant to the market this company is particularly
sensitive to other new entrants, as PeakProtect will not have the long brand history, relationship
with distributors, and many other things that the competitors mentioned earlier in this document
do. This will make cultivating, as quickly as possible, these relationships with customers and

businesses important for PeakProtect, and an early goal of our business plan to create sustainable
advantages. Assessing the fundamental structures of Atomic GmbH which have led to their
multi-decade success in the face of new entrants is a valuable strategy for protecting PeakPortect
from new entrants coming to the space with innovative intellectual property of their own.
Innovation in the field of concussion protection will continue at private companies and public
research institutions and this must be accounted for in our go to market strategies.
Porter, in his 1979 paper, identifies six major sources of barriers to entry. Among these, there are
two which have served Atomic particularly well and warrant examination on the part of
PeakProtect, these being product differentiation and access to distribution channels 28. The
assessment of these two barriers to entry serves two purposes, developing strategies to overcome
them and gain market share from competitors such as Atomic, and utilizing barriers to entry in
our long-term business plan to create a sustainable competitive advantage.
In terms of dealing with these two barriers to entry as a new company, particularly in relation to
Atomic and Outdoor Master, PeakProtect will have a two-fold plan. Product differentiation is
largely a result of brand identification 29, our strategy for overcoming this will be firstly one
marketing and distribution plan that focuses on ski helmet rentals. Atomic and other large
competitors have long and positive brand images with winter sports enthusiasts, giving them a
strong advantage with the individual consumer making a purchase themselves at retail locations
or online.
New and casual skiers are, however, more likely to rent a helmet and a large proportion of lodges
now require rental or ownership of a helmet. This is a sales opportunity whereby the safety
attributes of PeakProtect’s core IP are of particular interest to lodges interested in minimizing the
severity and number of head injuries, and consequently the costs of litigation and emergency
services. This enables marketing materials we develop for lodges, as opposed to individual
customers, to go into more depth on the safety profile then otherwise may be possible. The large
number of purchases a lodge makes allows us to invest in detailed sales pitches, and the
decisions of a business should be less brand-biased and more focused on utility then would be
expected for individual consumers shopping for a winter sports helmet. Outdoor Master has not
focused on safety profile to the same extent as PeakProtect will, and this will be an advantage
when speaking with ski lodges.
This strategy of focusing initially on rental helmets also helps to overcome the barrier of
distribution channels, by minimizing the number that must be acquired. This allows PeakProtect
to directly sell helmets in large quantities to lodges, avoiding the costs and time associated with
distributing through a retail outlet.
Porter lays out multiple qualities which make a buyer or supplier particularly powerful. In regard
to buyers two qualities which make them powerful are if there are few who make large purchases
and if the products are undifferentiated 30. In the case of athletic helmets, particularly for winter
sports, this scenario is not found. The competitors examined in this document capitalized on the
28
Porter, M. (1997). How competitive forces shape strategy. https://asiakas.kotisivukone.com/files/laatuoptimi2013.kotisivukone.com/tiedostot/
porter_5competitive_forces.pdf
29

widespread buyer segment and the opportunity for specialization in products, with Outdoor
Master creating multiple lines that target specific winter sports demographics. PeakProtect will
need to make sure flagship products are differentiated to mitigate buyer influence, while also
highlighting the differentiation products have in marketing.
The primary strategy for dealing with buyer power, with consideration to main competitors, will
be focusing on the specialization and safety profile offered by core IP. In order to differentiate
PeakProtect products from competitors such as Outdoor Master, product marketing will need to
go beyond just the safety benefits of the ideal damper for concussion protection, to speak to what
this IP offers beyond currently available solutions. This will be in the form of quantified
improvements versus competitor products gathered through testing and summarized
appropriately for individual distribution channels. The core IP of PeakProtect is heavily reliant
on scientific data, and as such any conflicts in relation to product differentiation should be solved
the same way. The plan of PeakPortect will be to back up, and resolve conflict with competitors
through testing and data on safety profiles.
Substitute products described in Porter’s Five Forces are not a threat readily apparent, in the
sense that the only alternative to wearing a helmet is not wearing one. There is of course, the
threat of alternative helmets or technologies for helmets that can reduce the risk of concussion.
Porter states “the more attractive price-performance trade-off offered by substitute products, the
firmer the lid placed on the industry’s profit potential” 31. This dynamic proposed by Porter is of
benefit to PeakProtect as its products will be the alternative in the early stages of
commercialization. Creating a sustainable competitive advantage will require zeroing in on
pricing that optimizes that price-performance tradeoff for customers, and highlights the same in
marketing.
It is not nearly enough to have a product that is optimizing performance and safety as
PeakProtect’s do, the customer must be aware of the added benefits of choosing this alternative
helmet. PeakProtect will conduct market research on helmet pricing by quality category and
brand, as well as customer focused research to determine what different demographics of winter
athletes are willing to pay for helmets they perceive as offering additional safety.
Offerings from competitors such as Outdoor Master have focused on lowering price to optimize
the price-performance nexus. Others, such as Atomic, are heavily reliant on brand image and
benefits of perceived performance that brand has. Dealing with competitors in the area of
substitute products will require PeakProtect to focus on what is different about its products and
the added benefits to safety, which will require detailed marketing to ski lodges and individual
athletes. This firm will focus on intellectual property in this pursuit of becoming the preferred
alternative.
Several of the market situations which Porter believes lead to increased jockeying for position, or
competitive rivalry, are not present in the winter sports helmet market. These include a
30
31

perishable product, lack of switching costs, and slow industry growth32. Helmets are not
perishable and a helmet is a major investment for any individual athlete and will be used for a
long time period, and the winter sports industry is growing rapidly in multiple geographies. One
attribute of PeakProtect’s products may help in avoiding the competitive rivalry that is a race to
the bottom, and that is differentiation. Atomic has a positive brand image but helmet offerings
are not highly differentiated. Outdoor Master has differentiated their products, but mainly on cost
and not for safety profile. Lack of differentiation can lead to increased jockeying for position 33.
The IP of the ideal damper for concussion protection is a key differentiator of this company’s
products from others. PeakProtect will focus on its foundational IP to avoid running into
competitors directly as much as possible. When competition does happen, as it is bound to in
some form, PeakProtect will similarly look to differentiate products from competitors,
specifically in the form of safety profile. Differentiation in both core product attributes and in
marketing around those attributes will be the main response to running up against competition,
and the intellectual property of PeakProtect allows it to do so effectively.
32
33

The Appendices
Appendix A: Porter’s Framework

Edison 2 - Corporate Innovation Study

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Team 25: PeakProject Corporate Innovation Study

Publisher: Rutgers University Professional Science Master’s Program,

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Two Case Studies

Case 1: Atomic Austria GmbH

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Case 2: Outdoor Master

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Comparison: To Edison’s model, and between the two cases

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Outdoor Master’s primary weakness is in their lack of technological innovations or higher-priced

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Capstone Company strategy, in light of Case Studies:

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Appendix A: Porter’s Framework

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