Business Model and Strategy
The MIPS operation is run as an ingredient brand with a solution designed to improve the safety of the helmets by reducing rotational motion.
The product offering, for which the customer pays a price per unit, comprises development and implementation, kit components, licence, marketing and support, as well as the patented solution. For every new helmet implementation, testing, development and implementation of the MIPS BPS-solution is conducted on every model and size.
With regard to the helmet models that are aimed at consumers as the end-users, our customers are the large, global helmet manufacturers, who in turn sell their helmets to distributors and retailers who then sell them to the consumer/end-user. In the area of commercial helmets, sales are conducted directly with large, professional customers, who in turn, request tenders for specially designed helmets in greater volumes.
A scalable business model
An ingredient brand model together with outsourced production implies an optimal scalable business model comprising operational leverage and efficiency. With relatively few employees and limited overheads we can manage large volumes using our model.
We can identify more opportunities for continued growth. We will strive to attract new customers in both current and new helmet categories and with every existing and new customer we will increase penetration regarding helmet offering and volumes per type of helmet. The key points in our strategy are:
1. Defend MIPS’s position as the first choice and as partner in the global helmet brand and in various helmet categories, by
- strengthening our position in the existing customer base
- growing the customer base in existing consumer helmet categories and entering new consumer helmet categories
- working up the market in helmets for commercial use.
2. Continue to utilise the existing ingredient brand business model and operational structure.
3. Ensure long-term competitive advantage by continuously developing and strengthening the portfolio of intellectual property rights and solutions.
Based on scientific research and creative collaboration, MIPS develops technologies and products that offer improved preventive protection, thereby reducing the risk of injury.
The MIPS vision is to use technology solutions that reduce the risk of injury to ensure that helmets in all categories protect users significantly better than current test standards dictate. Protection equivalent to the MIPS offering should be a minimum requirement in all helmet standards worldwide, regardless of type of helmet or price point. MIPS will continue to be a pioneer in this field of research in order to offer the safest and most innovative solutions.