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London Olympics Case

In: Business and Management

Submitted By fince
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London 2012 Olympic Games Case

1. The core problem or issue in the case

The core issue in this case is the “tradeoff decision between revenue generation and attendance”. Further, we can say that these issues are problematic like: * Maximizing ticket revenue without charging high price for it. * Peoples’ willingness to pay for specific event * Appeal of the sport (global and local) * Stage events (opening and closing ceremonies) * Particular team or athlete * Limited guidance for pricing tickets from past events. * Every city’s taste and preferences matter * Reach of the games by location * Internet ticketing * Recent global financial crisis * Maximizing attendance by selling to the right person and ensuring their presence. * Generating genuine enthusiasm is important * No empty arenas and stadia * Knowledgeable spectators * Selling ticket for the infamous sports in preliminary rounds like table tennis, archery, handball, etc. * Price differentiation among each sport. * Promoting every sport * Delicate issue * Secondary market for tickets.

2. The dilemma of Williamson – explain the stances and support one of them

Paul Williamson, head of ticketing for 2012 Olympic Games, he and his team is facing the dilemma while developing policies for pricing and distribution of tickets for the games. The following are the options available to them:

I. It is mentioned in case that due to the importance of ticketing for the games they have strong incentives to maximize revenue from this source. It contributes around $650 million to the revenue. This is very important for the financial legacy of these games.

II. Maximizing attendance with a motive to promote all the events which are famous (swimming, football, opening ceremonies, etc.)

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