Fan Duel and Draft Kings are fantasy sports websites. They offer daily fantasy sports contests in football, baseball, basketball, hockey, soccer, MMA, auto-racing and eSports for real cash prizes. These two companies are major competitors in their respective markets concerning daily fantasy sports. These two are major competitors like Coca Cola and Pepsi. This article tells us that the two competitors have decided to join forces for a better cause.
The two companies feel like they have spent so much time and money on advertisement instead of improving technicalities within their company. The two companies combined spent a little over 500 million dollars last year just on advertisement trying to build their own unique brand. Now that the two companies plan to merge, they will no longer need to spend as much money and time on advertisement. They will use all of that money and time innovating new ideas for their joint company. They will no longer have a major competitor so they can focus on giving the consumer the best product. Both companies have come out saying that they have one vision of where they want the joint company to go but haven't had the chance to invest in it. Saying that they have a lot of ideas, this should lead to great things for the company and the consumer.
This article shows us a whole lot about marketing. First off it shows us how these companies have spent a lot of their efforts on the promotion side of the target market. They no longer have to worry about a major competitor and are now able to focus on the product part of the target market. The joint company can now focus on their opportunities and strengths and not have to worry about weaknesses or threats very much. This move to combine companies will be very beneficial in being able to make money and give the customer a better product.
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