Aes Corporation B Global Sourcing Initiative Online Case Study Solution

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Aes Corporation B Global Sourcing Initiative Case Study Solution & Analysis


NASCAR (National Association for Stock Vehicle Automobile Racing) is a company conducting series of Stock Car racing in United States and acting as an approving body for driving the guidelines for Stock Cars and truck Racing. 2) Stock Car Racing by NASCAR is the second largest spectator sport, with greatest number of sponsors. 1) The other sources of revenue for Aes Corporation B Global Sourcing Initiative Case Study Solution consists of; 10% of the overall revenue from television rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand name to business.

NASCAR has a closed business culture with the non-interventionist approach. Nevertheless this non collective technique brings stress in the sport. The structure of Vehicle of Tomorrow by Aes Corporation B Global Sourcing Initiative Case Study Analysis, with an intention of safety for the drivers, brought various stress among the stakeholders of the sport.
Executive Summary
The communication audit, carried out in 2010, revealed that in spite of the truth that the business highly depend on the interactions in between its stakeholders, there was no identifiable service interaction technique. The market's target clients, instructions and objectives were all unknown.

The audit explained different lacking of NASCAR in terms of absence of internal combination, absence of fan management strategy and lack of social and digital media of marketing. The business has intricate environment with independent tracks, chauffeurs and teams. This structure with closed business culture bring numerous obstacles in accelerating a change. Other partners in ecosystem includes the media networks i.e. television and radio, and corporate marketers.

Aes Corporation B Global Sourcing Initiative Case Study Solution viewers was highly faithful to the sport and the brand names related to the NASCAR, making it appealing for sponsors and corporate marketers.

Issue Declaration.

The business is presently facing the issue of decreasing rates of participation at racing tracks and rates of television viewers. This can put a considerable effect on its incomes from sponsors, media rights, and from other sources of profits.

Situational Analysis.

The company was rather successful till 2005 with its standard marketing methods, but quickly after 2005 the company starts facing various issues including decrease of its fan base. A number of external as well as internal aspects are responsible for the decrease. Internal aspects consist of; inadequate financial investment in social media and other digital medias of.

Fan base of NASCAR made up of married males with a typical age of 47, which passes their fandom to their children and develop generational loyalty. Other difficulties for NASCAR includes the shift of its fans to other sports as they were enhancing their fan's experience permitting access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, etc.

SWOT Analysis.


In SWOT analysis, strengths defined as company's qualities which are different from its rivals. These are company's core competencies on which company efficiency or business success based on. Aes Corporation B Global Sourcing Initiative Case Study Help core proficiencies includes it has rights of determining guidelines as approving body. Guidelines and policies concerning professional stock cars and truck racing are determined by NASCAR like if any team with needed skills and resources can participate in races by following guidelines and guidelines determined by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise consists of that it has title of second biggest viewer sport in the United States with having more fortune 500 sponsors based in United States. Its races were used to transmit in more than 150 nations around the world with more than $56 million incomes. The primary sources of their earnings originate from tv rights, approving fees, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise large resource of fans and business sponsors. Due to the fact that of greatest brand loyalty of fans towards brands marketed by NASCAR, all the occasions of NASCAR are sponsored by corporates. (See Appendix A).

Weak points.

Weaknesses in SWOT Analysis are thought about as external aspects. Weaknesses consists of the aspects that stops company to carry out at required level of performance. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist approach. They typically utilized to form guidelines and other needed procedures without intervention of others which leads to poor cooperation. NASCAR develops Automobile of Tomorrow without collaboration so result is that drivers did not like that principle. As this is racing sport so covering of sports by media is likewise tough. It was likewise discovered that NASCAR had no effective strategy for service interaction. They don't know how to deal with problem if it occurred off track. Ineffective service communication leads to that they don't have clear instructions for their long term goals. They don't know that where they want to see this sport in future.
Porter's 5 Forces Analysis

Opportunities in SWOT analysis are external elements which can be beneficial to company or the external factors on which company is having competitive benefit. NASCAR usually utilized to rely on traditional media sources like regional newspaper for publicity of its sports. Normally these conventional media sources try to cover their home group and certain kind of occasions. NASCAR also came to know from these traditional media outlets that sport was challenging to cover. Media landscape also changed from traditional to digital landscape. Newspapers failed. NASCAR can deal with its capabilities to get optimal possible gain from this brand-new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its advantages. Digital rights of NASCAR were likewise offered to Turner Sports. NASCAR used to get pay check of around $15 million annually from Turner Sports. There are number of cons behind this deal. For example Aes Corporation B Global Sourcing Initiative Case Study Solution had to get approval from Turner Sport if it want to produce its Facebook page, twitter account and even mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track. Then they are required to pay licensing fees to Turner Sport, if media sources like papers, publications and cable channels want to publish videos of races on their particular pages. NASCAR can work on terms and conditions and attempt to work out with Turner Sports to get optimal benefits of it. Star power plays extremely important role in producing revenues from every sport. It was kept in mind that NASCAR is lagging in this area i.e. star power. When sports fans were asked relating to popular celebrities and stars then NASCAR driver was not discovered even in top twenty reactions. NASCAR can put efforts in this area too for earnings generation. They must direct their drivers that how they can end up being sport stars. Four tactical focuses which are created by research study group can also be functioned as opportunity for NESCAR. These 4 tactical focuses compares and analysis Aes Corporation B Global Sourcing Initiative Case Study Solution methods.


Dangers in SWOT analysis are defined as external elements that can danger to business's success. Because if there is financial down turn then people would be having less return on financial investment, Economic down turn was experienced in late 2000 which can be threat for NASCAR. Earning of people would be effected and they would be more mindful in spending their money. Economic down turn likewise leads to increase fuel rates which likewise impacted NASCAR. Since fans of NASCAR used to attend its occasion from long distances. NESCAR had a guideline of 65/25/10 for income circulation. 65 percent revenues from media rights would be distributed to race course, 25 percent profits would be dispersed to contending team and remaining 10 percent would be kept by NESCAR which is sanctioning body. Contending group wanted to increase their portion of revenue from 25 percent due to the fact that of boost in running cost of a race group and also there is decline in the variety of full-season sponsorship. NESCAR likewise faces dangers from other sponsors since they are making enormous financial investments to enhance experience of fans. For instance that includes updating existing avenues, constructing new avenues, supplying Wi-Fi center and also providing other interactive mediums to communicate sports on smartphones. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and create generational loyalty. So the difficulty is that the household system in America was changing leading to reduction of influence of married male fan base over their children. In addition to it perceptions about car was likewise changing with perceiving cars and truck a car to reach at point B from point A, instead of as an enjoyable job. If NASCAR make significant financial investments in brand-new segments which are based on brand-new customers then it might deal with negative remarks from its core fan base, now.

Porter's Five Forces Analysis

Porter's 5 forces is a model that is utilized to evaluate industry in which business is working. It helps in identifying what are strengths and weakness of any specific industry. It recommend that every market is various from one another. It is very important to understand market in which company is working because NASCAR's bottom line i.e. net revenue is heavily depends on this. There are 5 forces that are utilized to determine success, intensity and attractiveness of Aes Corporation B Global Sourcing Initiative Case Study Solution organisation.

Competitive Rivalry

This force suggests capability of rivals. Groups usually represents sponsors in NASCAR and the medium of advertising is motorists. Therefore it can be stated that drivers and race automobiles are competitors. These motorists can go against NASCAR if they improved opportunity in regards to rewards and tv direct exposure. If audiences enjoy other race cars and trucks and drivers more than NASCAR then audiences can move to those other intriguing cars and trucks and drivers. NASCAR could be having hazard from its two direct rivals that is Solution 1 and Moto GP. They require to create competitive advantages for motorists so they don't shift to other competitors.
Swot Analysis
Provider Power

The provider power suggests the variety of suppliers are readily available in market and what is the expense connected with provider if company shifts from one provider to another. Due to the fact that chauffeurs with required resources and skills are restricted, in this industry there is supply monopoly.

Buyer Power

In the case of NASCAR clients are its viewers. Audiences can switch to other rivals quickly due to the fact that viewers will having low changing cost.

Danger of Alternative

Replacements are referred as options. The alternatives in this case can be other home entertainment means like viewers can shift to other sports. So there are vast array of substitutes are offered in this situation which recommends that threat of alternative is high.

Risk of New Entry

In the case of NASCAR threat of new entry is low. They require to build cars and racing tracks and likewise needs to pay large amount to chauffeurs for changing.

PESTEL Analysis


It can not be concluded from case study that there would be modification in resource allotments. NASCAR had actually got take advantage of lower taxation policies which leads to increasing in profits. They made heavy investments in the research and advancement. As NASCAR is operating in various markets so it needs to deal with different policies. It is likewise noted that Aes Corporation B Global Sourcing Initiative Case Study Analysis has actually dealt with increased scrutiny concerning regulatory. Every government has different concern so NASCAR needs to be prepared for it as priority can be shifted to other sector.


Economic aspects includes taxation rate, currency exchange rate, economic efficiency of that particular business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its competitors can be impacted if there is federal government intervention in the marketing and sales sector. NASCAR can leverage abilities of staff members to create brand-new chances and enhance existing chances.


Each has different social values and norms. It helps in understanding relating to society and choice of customers.


In this case of NASCAR it can be noted that companies are greatly spending for research study and advancement. NASCAR ought to likewise work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Because every nation has various legal terms and conditions, Legal plays an essential role in every country. Aes Corporation B Global Sourcing Initiative Case Study Help needs to be make certain that they secure their legal rights in every county so any company does not damage to its legal rights.


Ecological factors are likewise essential for every organisation. NASCAR needs to make sure that its cars are not generating contamination more than acceptable level.

7 P's of Marketing


The products of Aes Corporation B Global Sourcing Initiative Case Study Solution in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving guidelines for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).


Prices technique of NASCAR for its race occasions tickets is based upon the location and value of the racing occasions. Together with race events tickets, NASCAR likewise charge numerous service fees to its stakeholders and earns revenue. It charged sanctioning fees of $1-2 million per race on average in 2005.


Marketing method of NASCAR is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races.


NASCAR have its racing tracks in numerous cities in United States. The most important tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in the majority of the cities in United States to comprehend across the country appeal.


Nestle individuals method is consisted of offering better experience to its viewers, its fan base and to all of its stakeholders. Individuals are a crucial element of Aes Corporation B Global Sourcing Initiative Case Study Solution A marketing method as its occasions are the source of home entertainment for crowd. Its individuals method consists of efforts to provide better experience to its Fans, Race Drivers, Crew, Event Organizers etc., all of which come under people technique of NASCAR.


Numerous organisation procedures are needed to perform racing occasions in an effective way. These processes consist of; correct schedule of time, arrangement for spectators, offering tickets, plan of area for sponsors, handling logistics and so on. These all processes contribute I constructing NASCAR image, enhancing viewers experience and increasing fan base.

Physical Evidence.

Most important physical proofs for the NASCAR consists of the presence of its racing tracks, stock cars and trucks and racing events. Together with it, its merchandising brand names consisting of tee shirts, caps, goodies etc., likewise serve as a physical proof for NASCAR.

Product Life Cycle Assessment.

The racing events by NASCAR was introduced on June 19, 1949. At the very first stage competition for NASCAR was low, as the competitors drove the vehicles similar to the cars and trucks driven by ordinary individuals.


After conducting its first race effectively the company moved towards developing its own tracks. The first Aes Corporation B Global Sourcing Initiative Case Study Help based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by establishment of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the development of racing tracks the company moved towards transmitting its races on television in 1979. The first occasion transmitted on tv was flag-to-flag protection of Daytona.

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular company into one with worldwide fan base. He started a new age of financially rewarding sponsorships and television agreements for NASCAR.


The maturity duration for NASCAR started with the efforts of William France Jr., with the company having vast array of earnings sources. The company has about 500 sponsors with transmitting its occasions in about 150 nations. The company has large number of tracks in most of the cities of United States.


The decrease in the company's offerings started after 2005 with typical presence rate per race decreased by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The significant reasons for decline include the monetary crisis of 2008, which increased the cost of reaching tracks for viewers due to increasing fuel rates, and the moving of its fan base towards other sports.

Market Segmentation.

The marketplace segmentation of Aes Corporation B Global Sourcing Initiative Case Study Analysis can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Aes Corporation B Global Sourcing Initiative Case Analysis is based upon the geographical existence of its tracks in various states and cities in United States, and the television broadcasting of its occasions in numerous nations. The business has 23 tracks in about 20 states of America and has tv broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation provides the business regional as well as international fan base.


The demographic division of Aes Corporation B Global Sourcing Initiative Case Study Help is also highlydiverse based upon the gender, earnings and age of the consumer. To increase the group sector of its market NASCAR need to revise its marketing methods to attract more age groups and lower its rates to enter in the market sector with a low typical income.


The psychological attributes of most of the fans are quite comparable. NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to purchase tickets and see the races once in a week. 71% of them prefer to purchase products with a NASCAR brand. They are quite extrovert and are willing to mingle with other fans while racing. They desire quality racing with low price at convenient area. NASCAR has tried to increase the quality of its racing by introducing phase racing, they also have actually attempted to lower prices and make the event more practical by introducing live racing.


Behavioural division of NASCAR is based upon the behaviour of fans in terms of watching the race live on the television or by going in the events. Currently, the fans preference is towards viewing the race at house on tv rather than going, as the customer experience at NASCAR tracks is not beneficial as well as pricey.

Target audience.


One of the possible target market of NASCAR was Hispanics; the young and growing population of United States. The market section has great potential for NASCAR as the population was growing at a higher rate and it was expected to end up being thrice after forty years and the segment has increasing wealth rate with about $1 trillion of wealth in 2014.


Kids are likewise one of the potential target audience section for NASCAR, as they are more connected socially than other groups. Developing fan base amongst kids can supply a possible increase in the number of fans for racing due to their connection. Kids spend the majority of their times in using mobile phones and playing computer game. Car racing video games developed by Aes Corporation B Global Sourcing Initiative Case Study Analysis can be a potential source of getting attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital features related to kids are not efficient in acquiring the attention. NASCAR requires more attention towards customizing and enhancing its digital features to bring in the kids target market.

Generation Y.
Generation Y target market consists of those who invested 5 times more resources on discretionary costs i.e. purchasing tickets for racing events, than others. This huge expenditure makes the sector potential for NASCAR marketing method of increasing its fan base. The marketplace sector is also easy to method as 81% of the Y Generation consumer utilizes Facebook every day and the usage is two times of utilizing tv and radio. The marketplace segment views sports as a get-together, instead of adherence to sport. The marketplace section thinks about NASCAR as an organization lacking in developing a multiculturalism atmosphere. Aes Corporation B Global Sourcing Initiative Case Study Solution ought to take numerous actions to enhance the experience of Generation Y customers in its occasions.

5 C's of Marketing

5 C's of marketing helps in taking decisions concerning marketing.


It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, environmental and legal and is mentioned above.


NASCAR is an auto racing business with having USP of high quality auto racing with an international structure. Its sector is sports group and occasions. Its target market is males in the age group of 15-60 years. Business has actually closed corporate culture and having non-interventionist approach.


Collaborations includes distributors, providers and alliances of NASCAR. NASCAR used to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application.


The consumer of Aes Corporation B Global Sourcing Initiative Case Study Help are its audiences. They target customers with having age of 15-60 years. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and produce generational commitment.


The direct rivals of NASCAR are Solution 1 and Moto GP. Groups usually represents sponsors in NASCAR and the medium of advertising is chauffeurs. Therefore it can be said that drivers and race cars and trucks are competitors. These drivers can go against Aes Corporation B Global Sourcing Initiative Case Study Analysis if they improved opportunity in regards to rewards and television direct exposure.

Marketing Strategies.

1. Preserving and establishing Facebook Page.
One of the potential target audience sections for NASCAR is Hispanics which is the growing population section of USA but sadly NASCAR had actually been unable to bring in the this targeted sector. In order to bring in the young growing generation the NASCAR should market by using social networks like Facebook. It should establish a Facebook page consisting of the information concerning the races and the areas of tracks to make the customer useful about the core operations of Aes Corporation B Global Sourcing Initiative Case Study Analysis. It needs to also update its Facebook page on everyday basis to supply information about its upcoming occasions. This would make the target audience segment more informative about business and would result in drawing in large fans base.
2. Developing and Upgrading Accounts of Key Drivers.
NASCAR drivers has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Display). The significant reason behind it is that, the racers primarily play in teams and are unable to construct a key account and maintain a close contact with fans. The poor contacts with fans result in less tourist attraction of audiences towards the racers and a low star power. Star power is a crucial aspect for attracting audiences towards tracks and towards television. The star power for the motorists at NASCARA could be enhanced by creating and upgrading accounts of crucial motorists by NASCARA itself. This would eliminate the requirement of forcing motorists to maintain their accounts and would result in increasing fans attention towards NASCARA drivers.
3. Establishing New Games and enhancing present games for kids.
Kids spent the majority of their time on playing video games and utilizing smartphones. However sadly, kids playing NASCARA have a worst experience of playing its video games. As an outcome, they are less brought in towards the sport. In order to draw in these kids, NASCARA ought to improve its present racing video games by introducing personalization in the automobiles i.e. changing colours, selection of speed, presenting group racing in the video game, using better graphics related to the racing tracks and introducing various levels in the video game. All these modifications in the present video game would provide much better experience to kids.
In addition to it, NASCAR ought to also build brand-new video games associated with racing like kids racing with kids characters as chauffeurs, cartoon racing with racing between different animation characters with an option of picking the favourite animation character for the kids. These techniques would make it possible for the business to bring in among its possible target segments.
4. Introducing multiculturalism at occasions.
Aes Corporation B Global Sourcing Initiative Case Study Help events are consisted of fans with very couple of multiculturalism, due to expense of arrival in events, making it unsightly for the consumers perceiving sport occasions as affairs i.e. Generation Y customers. As the Generation Y clients are a possible target market for NASCAR, for that reason the business needs to take specific measures to attract this prospective target market. It should embrace strategies to bring in the clients far from the tracks area with different culture. The method to do so might be providing special discount rates on tickets or complimentary tickets to audiences originating from a specific range or from another state. It would increase multiculturalism of the fans and would make Generation Y clients more satisfied.
5. Improving Client Experience at Tracks.
Since on the race day audiences got disappointed, NASCAR needs to work on infrastructure and features at tracks. Because in very same industry other business are providing much better services than NASCAR, audiences have numerous expectations from Aes Corporation B Global Sourcing Initiative Case Study Analysis. IF NASCAR don't deal with this concern then its fans may shifted to its rivals. According to fans there were not adequate centers were available as compare to other sports providers. NASCAR ought to make sure that it supply sufficient centers that includes cleaned up washrooms, comfortable seating plan. They should likewise offer WIFI services and accessibility of charge card throughout that track. It ought to be likewise ensure that there suffice jumbo turns placed at all required places. There must be also food stalls that offer quality food to viewers. In this method viewers will be having pleasant experience at the day of event. (See Appendix B).

Marketing Spending plan

Marketing spending plan made on the basis of the above techniques for the period of 5 years from 2011 to 2015, reveals the cost associated information for the marketing techniques. (See Appendix B). It can be seen that strategy 5 of enhancing consumer experience at tracks would require highest initial financial investment and cost and technique 4 of presenting multiculturalism will require most affordable initial investment with most affordable further per year expense. The business should prioritize the resource allocation on these techniques on the basis of its offered resources and the potential benefits which the technique would supply.
KEEP IN MIND: The values about expense are assumed on reasonable basis due the absence of figures and facts related to cost in the case research study. Inflation rate of United States is assumed to be 10%.

On the basis of deep analysis of the external and internal aspects of Aes Corporation B Global Sourcing Initiative Case Study Solution causing the decrease of tv viewership rate and attendance rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long run. These strategies would handle internal factors like poor consumer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., along with with external factors like moving of fans towards other sports, demographical changes in America and changing domesticity designs.