...Research Paper: Market Structure Professional Sports ABSTRACT Economic theory introduces us to four different types of markets: perfect competition, monopolistic competition, oligopoly, and monopoly. Professional sports teams operate in an environment that is different than the typical business structure. The goal of this paper is to look at this industry, in particular the NFL, in an economics context and gain an understanding of the market structure of this unique industry. To do this I will discuss a brief history of the National Football League in the U.S. and how this organization is structured. I will also discuss typical market structures and type of market structure that professional sports may fit into. Further I will briefly discuss the economic concept of a monopsony and how sports leagues such as the NFL exhibit those characteristics. Market Structure and Professional Sports Teams Introduction Teams like the Carolina Panthers, New York Yankees or the L.A. Lakers are part of national leagues of professional team sports such as the NFL, MLB, and NBA. These professional sports teams operate in an environment that is different than the typical business structure. The National Football League is an economic juggernaut. As of 2011, it reportedly makes an estimated $6 billion per year in ticket sales, merchandising and contracts with television networks...
Words: 1995 - Pages: 8
...Porter’s competitive forces model, we need to look at potential entrants, suppliers, substitute products, and customers. Now potential entrants that could be competitors to the NBA could be less prestigious basketball leagues, national leagues, and other professional sports leagues that try to take away their customers like the NHL or MLB. As for substitute products other professional sports would also fall under this category as well along with amateur content uploaded onto other streaming sites that would lure consumers away from the NBA main website like Youtube for instance. As for customers, their bargaining power is very high in this business because they have several alternatives from television, to live games, and radio. One of the advantages that NBA.com has is its additional content when it comes to statistics and scores of other teams as well as insights and commentaries on matches. Akamai helps the NBA compete in the world market by allowing basketball fans throughout the world to access as fast as possible NBA’s virtual assets. It also allows the NBA to focus on specialized niche. 2. Using Porter’s generic strategies model, what do you think is the NBA’s overall strategy or strategies? The NBA’s overall strategy is differentiation. This is because they already have a focused fan base and they need to ensure that the NBA appeals directly to those fans. This can be done by improving their performance by using website like Akamai to deliver steaming videos to their...
Words: 674 - Pages: 3
................................................................ 1 Consumer Health Sees Moderate Growth in 2012 ................................................................... 1 Filipinos Evolve To Become More Health Conscious ............................................................... 1 United Laboratories Strengthens Its Foothold in the Market ..................................................... 1 Parapharmacies/drugstores Remains the Major Channel for Consumer Health ...................... 1 Consumer Health To See Positive Growth in Medium Term .................................................... 1 Key Trends and Developments .................................................................................................... 2 Generics Gains More Attention ................................................................................................. 2 Manufacturers Invest in New Product Formats ......................................................................... 3 Manufacturers’ Promotional Campaigns Strengthen Their Foothold ........................................ 4 New Product Variants Cater To Faster-paced Lifestyles .......................................................... 5 Social Media Nurtures Better Manufacturer/consumer Relationships ....................................... 6 Market Indicators .......................................................................................................................... 7 Table 1 Table 2 Table 3 Table 4 Table...
Words: 8867 - Pages: 36
...Description of marketing strategies applied by Nike Air Force 4.1 Challenges Forcing Nike to Focus More on Marketing Sportswear is defined primarily as apparel and footwear made for sports participation, though is now also includes casual clothes worn by people for daily activities (E. Ko, C. R. Taylor, et al., 2012). The sportswear market is one of the most price-competitive markets throughout the globe. Within the UK, items of sportswear are purchased by almost 90% of people under 35 years of age, and by 76% of the population as a whole (Mintel forecasts, 2006). The international sportswear market is worth nearly 41.5 billion US dollars at the wholesale level, with Nike, Adidas, as well Reebok comprising some 14% of this market (Jeroen, 2004) and more details are shown in Figure 1. International Athletic sportswear market: Share by brand in Millions of US dollars (Source: Sporting good intelligence, 2003) 4.1.1 Overview of sportswear industry through Porter’s Five Forces analysis Before the study regarding the marketing strategy of Nike Air Force, it is important to have a clear view of sportswear industry as a whole. Based on Porter's Five Forces model, the general characteristics of the industry can be described in the figure as follow. Based on the analysis, it can be concluded that the sportswear industry as a whole can be characterized as competitive and easy for new entrants. Such truth has raised challenges for existed companies, such as Nike. In addition to...
Words: 7441 - Pages: 30
...Calgary, Alberta, Canada T2N 1N4 Received 24 April 2007; accepted 31 July 2007 Abstract This article reviews ‘event tourism’ as both professional practice and a field of academic study. The origins and evolution of research on event tourism are pinpointed through both chronological and thematic literature reviews. A conceptual model of the core phenomenon and key themes in event tourism studies is provided as a framework for spurring theoretical advancement, identifying research gaps, and assisting professional practice. Conclusions are in two parts: a discussion of implications for the practice of event management and tourism, and implications are drawn for advancing theory in event tourism. r 2007 Elsevier Ltd. All rights reserved. Keywords: Event tourism; Definitions; Theory; Research 1. Introduction Events are an important motivator of tourism, and figure prominently in the development and marketing plans of most destinations. The roles and impacts of planned events within tourism have been well documented, and are of increasing importance for destination competitiveness. Yet it was only a few decades ago that ‘event tourism’ became established in both the tourism industry and in the research community, so that subsequent growth of this sector can only be described as spectacular. Equally, ‘event management’ is a fast growing professional field in which tourists constitute a potential market for planned events and the tourism industry has become a vital stakeholder in their...
Words: 22067 - Pages: 89
...American sports apparel company with headquarter in Maryland, US. Kevin Plank had the idea of making a t-shirt that is able to enhance athletes’ performance by controlling the body’s temperature and acting like a second skin. In only 14 years, Plank has succeeded in building Under Armour into a worldwide operating company that offers a wide range of premium priced sport articles including performance apparel, footwear and accessories. As of 2010, Under Armour was able to generate sales revenue of $1.06 billion of which the majority comes from Canada and the United States. Under Armour’s vision is to become the world’s leading performance athletic apparel by pursuing the mission of making “… athletes better through passion, science, and the relentless pursuit of innovation” (Ireland et al., 2013, p.378). The following report provides an analysis of the company Under Armour based on information from Ireland et al. (2013) in Management of Strategy. The paper is divided in the following three parts: 1. Five Forces analysis of the sportswear industry 2. Value chain analysis of Under Armour 3. Under Armour’s generic strategy. 1 2 Five Forces Analysis of the Sportswear Industry The following section provides a detailed analysis of the competitive environment in the sportswear industry using Porter’s Five Forces Model. The aim is to determine the attractiveness of the sportswear industry as well as forces that will have a significant impact on competitors’ strategies in the future...
Words: 3728 - Pages: 15
...large, “well known” company, and they have many resources to advertise to the public. As “Kick’em Back” enters the second stage, market growth, sales will quickly rise. The company should move through the stage slowly because customers will be satisfied with the product and continue to buy it. As competitors begin to enter the market, they will try to copy the product or make it better (Cannon, McCarthy, & Perrault, 2009, p. 262). At the end market growth, sales and profits will decline for Coca-Cola. According to Cannon, McCarthy, and Perrault (2009, p. 263), market maturity occurs when industry sales level off and competition grow tougher. Some companies will drop out of the market because they are not efficient and cannot compete. The sports drink from Coca-Cola should move through this stage slowly. If Coca-Cola can effectively market the product and make it stand out from the competition, “Kick’em Back” should...
Words: 1570 - Pages: 7
...strategic direction, the club had detailed analyses of its own existing situation as well as the environmental analyses. The strategies were made upon these analyses, such as prescriptive approach that indicated the club should have a plan in advance. On the other hand, it used emergent approach, which could support the club to maintain its sustainability development. Finally, the club evaluated their strategies frequently. Through the evaluation process, the club reflected itself. And then, it could provide useful information for them to sustain competitive advantage. For keeping the club running effectively, they should consider more activities and events to entertain the members. 1. Introduction An awareness of the importance of the strategy to the sport organization has been recognized over these years. According to Johnson and Scholes (2002), strategy decided the direction and scope of an organization’s activities, and connects its external environment. In addition, as Hoye et al (2009) state, strategy can be an explanation of how sports organizations survive with competitions and sustentation. As Forster (2006: 72) claims that “sport is intermediated, controlled and contested by great numbers of organizations” and “every sports organization must consider its own situation before developing a strategy and should not necessarily follow the strategy or direction of another” (Watt, 2003: 53). However, this does not mean to let the circumstances lead all activities. According...
Words: 5039 - Pages: 21
...LO2 - Segmenting, Targeting and Positioning 05 Macro and Micro environments factors that influence marketing 05 Segmenting strategies 05 Targeting strategy 06 Buyers’ behaviour activities that affect marketing 07 Positioning strategy 07 Section LO3 - Marketing Mix 08 Extended marketing mix 08 Product development and sustainable competitive advantage 09 Distribution strategy 09 Pricing strategy 09 Promotional strategy 10 Section LO4 - Marketing Mix in different context (activity) 11 Planning marketing mix for two different segments in consumer markets 11 Marketing products and services for B2B markets 11 International marketing strategy 11 Credits and references 12 A BRIEF OVERVIEW OF NIKE, INC. Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of US$18.6 billion in its fiscal year 2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and Precision Castparts are the only Fortune 500 companies headquartered in the state of Oregon, according to The Oregonian. The company was founded in January 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became Nike, Inc. in 1978. Nike markets its products under its own brand as...
Words: 4982 - Pages: 20
...QUESTION 1: THERE IS NO SUCH A THING AS GLOBAL PUBLIC RELATIONS-ONLY LOCAL PUBLIC RELATIONS.DISCUSS “It is widely accepted amongst economists that since World War II, the world has been integrated into a single market by lowering trade and investment” (Hill, 2001, p.17). Under this lowering integrated and interdependent world economy, often described as “global economy,” individuals’ nation’s economic gains are much greater than the losses through free flow of goods, services, and capital. The multilateral negotiations among nations, the international organizations to monitor and develop international trade and monetary system, World Trade organization, International Monetary Fund, and World Bank are good illustrations to represent this trend of world economy. Further, Phatak (1997, p.3) claimed that globalization of world economy leads to globalization of other societal entities such as politics, education, and culture etc. Conversely, in the field of public relations, this environmental change led by globalization means opportunities and challenges to practitioners as well as scholars. According to Cutlip, and Broom (2000, p.6), public relations is the management of function that establishes and maintains mutually beneficial relationships between an organization and the public’s on whom its success and failures depends. In other words, public relations is all about the liaison between an organization and the public. Without a clear definition...
Words: 3883 - Pages: 16
...brand New entry barriers * It's moderate in industry * There are already many players in industry like Nike, under armour which mainly focus on different market which is outdoor game like football, basketball which is men’s wear. * Lulu lemon is basically for the women wear. There are many players who design for women like Lucy, athleta, Gap, Bebe but they for sports wear not for yoga appeal. Rivalry among sellers into the industry * Bigger brand has more influence into the customer * Brand image play bigger role customer buy product because of brand name * Continuously innovation and new technology updates product which is similar to the other brands * Number of stores effect to increase sales and capture the market among the industry Substitute products * Substitute products are high * Customer can use other low cost dress for yoga like cotton shirt ,shorts,tees * Nike, under armour ,adidas offering sports appeals can substitute yoga clothing Swot analysis Strength * Strong relation Lulu lemon has strong relation with fitness professionals through which they will get appropriate feedback regarding the product innovation and style. * High quality product...
Words: 1606 - Pages: 7
...chain of the gaming industry, Garena functions as an integrated developer, publisher as well as a retailer. Garena moved from a focused differentiation strategy towards a broader scope while maintaining their differentiation approach. Customers were the key consideration in dictating their business level strategy, which resulted in both core competencies and value creation being customer-centric. Recommendations have been made to strengthen Garena market leadership and tapping new opportunities by analysing both micro and macro environmental factors and using SWOT analysis to identify internal strengths and weakness or its external opportunities and threats. Company Overview Garena is founded under the name of Forrest Li and his 9 friends in Singapore and it started off as an E-sports community in 2007. It basically focused on providing all sorts of services by hosting online games for the rapidly growing gaming community. Due to their passion to bring the online gaming experience to another whole new level, they are being motivated to build a great gaming company together. Therefore, Garena was established on 2009. During 2010, Garena launched its best online gaming social platform called Garena+. It’s for online gamers play games online with each other and they could use it to meet, chat, share tips and strategies etc. Within one year, it’d reach to over 1 million monthly active users after its first launch and expanded its presence to various countries such as Taiwan...
Words: 2606 - Pages: 11
...target market is centered on the youth otherwise known as the ‘Generation Y’. Red Bull started with the Red Bull Energy Drink (a slick silver 250ml can with a European look and feel) and later added three(3) of it functional product that is the Red Bull Sugar free, Red Bull energy shot and Red Bull cola. Big global companies such as Coca Cola and Pepsi has introduced their own energy drink versions to their product base and are strongly competing with the Red Bull brand. MARKETING STRATEGY It was generally acknowledged that Red Bull's success was the product of the company's integrated marketing communication efforts to constantly develop the brand. The information below discusses the marketing strategy adopted by Red Bull in the case. - The company's effective employment of buzz marketing in new markets that target trendy shops, clubs, bars, stores, convenience stores(gym, colleges and supermarket) to create widespread brand recognition - Sponsorship of sporting activities, especially extreme sports including the annual flugtag, Red Bull air race to enhance its image, - Viral marketing tactics depicting videos of athleticism and bravery on their web site providing consumers with information about how to find Red Bull events. The technique is to evoke the rush people seek from drinking the product. - Personal Selling Sampling is another very important part of the marketing system. The...
Words: 1974 - Pages: 8
...Shanzida Yesmin Account Head Phone: 01682 61 46 55 Table of content A. Executive Summary 3 B. Company History 4 C. Business Industry Profile 5 1. Industry analysis 5 I. Overview 5 II. Significant Trend 5 III. Growth Rate 5 IV. Key Success Factor 6 V. Five Forces Model 7 2. Growth: Expansion of the business in the future 8 3. Goals and Objectives 8 D. Business strategy 9 1. SWOT Analysis 9 2. Competitive Strategy 9 I. Cost leadership 9 II. Differentiation 10 III. Focus 10 E. Description of the Firm’s Product or Service: 11 1. Description 11 I. Product line 11-12 II. Customer Benefit: 13 III. Warranties and Guarantees 13 IV. Uniqueness 13 * Executive summary Choice and taste differs from person to person. Everyone wishes to have thing like their own and uniqueness in their things. Now a day’s a huge number of people in our country are using private vehicle. Most of them desire to have something different than others; they wish to have a exotic or sports type vehicles or at least a different look to their vehicles. But owning an expensive car is not always possible for everyone. Therefore the increasing demand of vehicle modification stuffs has gathered our attention for to be interested in opening a business of modifying vehicles. The business is all about modifying 4 & 2 wheeler vehicles. In our business we are going to import vehicle customization stuffs of renowned...
Words: 1444 - Pages: 6
...Generic Benchmarking University of Phoenix MMPBL/520 June 7, 2010 Generic Benchmarking Introduction Organizations and companies face many new and increasing complex challenges in today’s complicated business world. Because of the nature of our society and changes in our workforce resolving these challenges are becoming more and more difficult for today’s managers. Today, if a company is to be successful, management and the leadership groups must consider many things besides the bottom line. Management must ensure that their vision and mission statements reflect the true meaning of the company’s goals and objectives. This communication of the goals and objectives can be done in several different methods. Organizations must take a hard look at their management and leadership styles and if fits into the culture the organization. Management must also ask themselves if they are developing company loyalty from the employees and if the working environment is encouraging employees to be committed to the fulfilling the goals and objectives of the company, thus being about motivated employees for the success of the company. Management should also be willing to solicit feedback from employees, shareholder and customers to determine how they are communicating a common message of what management desires the organizational culture to be and to ensure that the vision and mission statement is clear for all to...
Words: 2416 - Pages: 10
