Aes Corporation B Global Sourcing Initiative Online Case Study Analysis

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Aes Corporation B Global Sourcing Initiative Case Study Solution and Analysis


Aes Corporation B Global Sourcing Initiative Case Study Analysis (National Association for Stock Car Car Racing) is an organization conducting series of Stock Automobile racing in United States and acting as an approving body for driving the guidelines for Stock Cars and truck Racing. The company was established in 1947, by "Big Expense" France. NASCAR set up Stock Cars and truck Racing events in United States with the presence of about 130000 viewers on average in 2005. It also relayed its events in about 150 nations. Stock Vehicle Racing by NASCAR is the second largest viewer sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its revenue. The other sources of revenue for Aes Corporation B Global Sourcing Initiative Case Study Solution includes; 10% of the overall revenue from tv rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand to business.

NASCAR has a closed corporate culture with the non-interventionist technique. 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 intent of safety for the chauffeurs, brought numerous stress amongst the stakeholders of the sport.
Executive Summary
The communication audit, carried out in 2010, revealed that regardless of the fact that the company extremely rely on the interactions in between its stakeholders, there was no identifiable organisation interaction technique. (

The audit pointed out numerous lacking of NASCAR in terms of lack of internal combination, absence of fan management strategy and lack of social and digital media of marketing.

Aes Corporation B Global Sourcing Initiative Case Study Solution viewers was extremely devoted to the sport and the brands associated with the NASCAR, making it appealing for sponsors and business online marketers.

Problem 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 significant influence on its earnings from sponsors, media rights, and from other sources of profits.

Situational Analysis.

The company was quite successful till 2005 with its conventional marketing techniques, however quickly after 2005 the business begins facing various problems including decline of its fan base. Several external as well as internal elements are responsible for the decline. Internal factors include; inadequate financial investment in social media and other digital medias of.

Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and develop generational commitment. Other difficulties for NASCAR includes the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, and so on.

SWOT Analysis.


In SWOT analysis, strengths defined as company's qualities which are various from its competitors. These are business's core competencies on which company efficiency or business success based on. Aes Corporation B Global Sourcing Initiative Case Study Help core competencies includes it has rights of dictating guidelines as approving body. Regulations and guidelines relating to professional stock cars and truck racing are dictated by NASCAR like if any team with required abilities and resources can enter into races by following rules and regulations dictated by NASCAR. So NASCAR has monopoly it this element. Its strengths likewise consists of that it has title of second largest spectator sport in the United States with having more fortune 500 sponsors based in United States. Its races were used to broadcast in more than 150 countries around the world with more than $56 million profits. The main sources of their profits come from tv rights, approving costs, 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 big resource of fans and business sponsors. All the events of NASCAR are sponsored by corporates due to the fact that of most significant brand name commitment of fans towards brands marketed by Aes Corporation B Global Sourcing Initiative Case Study Solution. (See Appendix A).

Weak points.

Weaknesses in SWOT Analysis are considered as external factors. Weak points includes the factors that stops business to carry out at needed level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collaborative. They have non-interventionist approach. They generally used to form rules and other needed procedures without intervention of others which results in poor collaboration. NASCAR develops Vehicle of Tomorrow without collaboration so result is that motorists did not like that concept. As this is racing sport so covering of sports by media is also difficult. It was likewise discovered that NASCAR had no effective strategy for company interaction. If it occurred off track, they do not know how to handle concern. Inefficient service interaction results in that they do not have clear direction for their long term goals. They do not know that where they want to see this sport in future.
Porter's 5 Forces Analysis

Opportunities in SWOT analysis are external aspects which can be beneficial to company or the external factors on which business is having competitive advantage. NASCAR usually utilized to count on standard media sources like regional paper for promotion of its sports. Usually these conventional media sources attempt to cover their house group and specific type of events. NASCAR likewise came to know from these conventional media outlets that sport was hard to cover. Media landscape likewise changed from traditional to digital landscape. Newspapers failed. NASCAR can deal with its capabilities to get maximum possible take advantage of this brand-new digital landscape. NASCAR have underinvestment in digital resources. So it can capitalize in social and digital media to get its benefits. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR used to get pay check of around $15 million each year from Turner Sports. There are number of cons behind this deal. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application. Turner Sport also had rights of each and every single video which is shoot throughout race at track. Then they are required to pay licensing costs to Turner Sport, if media sources like papers, publications and cable television channels desire to post videos of races on their respective pages. NASCAR can work on terms and conditions and attempt to negotiate with Turner Sports to get maximum benefits of it. Star power plays extremely essential function in generating profits from every sport. It was kept in mind that NASCAR is lagging in this area i.e. star power. For example when sports fans were asked relating to popular celebrities and stars then NASCAR motorist was not found even in leading twenty actions. NASCAR can put efforts in this location too for income generation. They should direct their drivers that how they can end up being sport stars. Four strategic focuses which are created by research study group can also be served as chance for NESCAR. These four strategic focuses compares and analysis Aes Corporation B Global Sourcing Initiative Case Study Analysis methods.


Dangers in SWOT analysis are defined as external factors that can threat to business's success. Since if there is economic down turn then people would be having less return on investment, Economic down turn was experienced in late 2000 which can be hazard for NASCAR. Earning of individuals would be effected and they would be more mindful in investing their loan. Economic down turn likewise results in boost fuel rates which also affected NASCAR. Due to the fact that fans of NASCAR utilized to attend its event from long distances. NESCAR had a rule of 65/25/10 for income distribution. 65 percent earnings from media rights would be distributed to race course, 25 percent income would be distributed to contending group and staying 10 percent would be retained by NESCAR which is sanctioning body. Completing group wished to increase their part of earnings from 25 percent because of boost in operating cost of a race team and also there is decline in the variety of full-season sponsorship. NESCAR also faces threats from other sponsors since they are making huge investments to improve experience of fans. For instance which includes upgrading existing opportunities, building brand-new avenues, supplying Wi-Fi center and likewise providing other interactive mediums to communicate sports on mobile phones. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their youngsters and develop generational loyalty. So the obstacle is that the household system in America was changing leading to reduction of impact of married male fan base over their children. Along with it perceptions about cars and truck was likewise changing with perceiving vehicle a car to reach at point B from point A, rather than as a fun job. Now if Aes Corporation B Global Sourcing Initiative Case Study Solution make substantial financial investments in new segments which are based upon brand-new clients then it may face negative remarks from its core fan base.

Porter's 5 Forces Analysis

It is essential to understand industry in which company is working because NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are utilized to recognize success, intensity and attractiveness of NASCAR business.

Competitive Competition

These motorists can go versus NASCAR if they got better opportunity in terms of rewards and television exposure. If audiences take pleasure in other race automobiles and drivers more than NASCAR then viewers can move to those other intriguing cars and chauffeurs. NASCAR might be having threat from its 2 direct competitors that is Formula 1 and Moto GP.
Swot Analysis
Supplier Power

The provider power suggests the variety of providers are available in industry and what is the expense related to provider if company shifts from one supplier to another. In this industry there is supply monopoly because drivers with needed skills and resources are limited.

Buyer Power

This force is concerning to clients that is it easy for customers to move to other items. Then clients are less most likely to switch, if there is more changing expense is associated. When it comes to NASCAR consumers are its audiences. Due to the fact that audiences will having low switching expense, viewers can change to other rivals quickly.

Danger of Substitution

Substitutes are referred as options. The alternatives in this case can be other entertainment indicates like audiences can move to other sports. So there are vast array of substitutes are available in this situation which suggests that hazard of substitute is high.

Hazard of New Entry

In the case of NASCAR hazard of new entry is low. They need to construct automobiles and racing tracks and also requires to pay hefty quantity to chauffeurs for changing.

PESTEL Analysis


As NASCAR is working in various markets so it needs to face various guidelines. It is also kept in mind that NASCAR has dealt with increased scrutiny regarding regulatory. Every federal government has different top priority so NASCAR has actually to be prepared for it as priority can be moved to other sector.


Economic factors includes tax rate, exchange rate, economic efficiency of that specific business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its rivals can be affected if there is government intervention in the marketing and sales sector. NASCAR can leverage abilities of employees to develop new chances and enhance existing opportunities.


Every society is different from each other. Each has different social values and norms. It helps in understanding concerning society and choice of customers. Social aspects consists of customs, culture, mindsets towards specific services and products, demographics, standards, interests and so on. It can be concluded that marketing through other ways rather than standard (i.e. newspaper) can be chosen in this society.


In this case of NASCAR it can be noted that companies are heavily investing for research study and development. NASCAR must also work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Because every nation has various legal terms and conditions, Legal plays an important role in every country. Aes Corporation B Global Sourcing Initiative Case Study Analysis requires to be make sure that they secure their legal rights in every county so any business does not harm to its legal rights.


Environmental factors are also crucial for every business. NASCAR needs to make sure that its cars are not creating contamination more than appropriate level.

7 P's of Marketing


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


Prices method of NASCAR for its race events tickets is based upon the location and importance of the racing occasions. Along with race events tickets, NASCAR likewise charge different service fees to its stakeholders and makes revenue. For example it charged approving fees of $1-2 million per race on average in 2005.


Promotional strategy 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 various cities in United States. The most crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in the majority of the cities in United States to comprehend across the country appeal.


Nestle individuals strategy is consisted of supplying better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an important element of Aes Corporation B Global Sourcing Initiative Case Study Solution A marketing method as its events are the source of entertainment for crowd. Its people strategy consists of efforts to offer better experience to its Fans, Race Drivers, Team, Occasion Organizers and so on, all of which come under people method of NASCAR.


Numerous company procedures are needed to conduct racing events in an efficient method. These procedures include; appropriate schedule of time, arrangement for viewers, offering tickets, arrangement of area for sponsors, handling logistics etc. These all procedures contribute I building NASCAR image, improving spectators experience and increasing fan base.

Physical Evidence.

Crucial physical evidences for the NASCAR includes the existence of its racing tracks, stock automobiles and racing occasions. Together with it, its merchandising brands including t-shirts, caps, goodies and so on, likewise serve as a physical evidence for NASCAR.

Product Life Cycle Assessment.

The racing occasions by NASCAR was presented on June 19, 1949. At the very first phase competition for NASCAR was low, as the rivals drove the automobiles comparable to the vehicles driven by common people.


The first NASCAR based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. After the development of racing tracks the business moved towards transmitting its races on tv in 1979.

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 decades, he changed NASCAR from a regional Sport popular company into one with international fan base. He started a brand-new age of lucrative sponsorships and television contracts for NASCAR.


The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide range of profits sources. The company has about 500 sponsors with broadcasting its events in about 150 nations. The business has large number of tracks in the majority of the cities of United States.


The decline in the business's offerings began after 2005 with average presence rate per race declined by 22% from 2005 to 2010 and tv viewership rate declined by 30% from 2005 to 2010. The significant causes of decrease consist of the monetary crisis of 2008, which increased the expense of arriving at tracks for viewers due to increasing fuel prices, and the moving of its fan base towards other sports.

Market Division.

The market segmentation of Aes Corporation B Global Sourcing Initiative Case Study Analysis can be divided into 4 sectors; 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 numerous states and cities in United States, and the television broadcasting of its occasions in numerous countries. The company has 23 tracks in about 20 states of America and has television broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical segmentation supplies the business regional as well as worldwide fan base.


The market division of NASCAR is also highlydiverse based upon the gender, income and age of the customer. Its existing fan base is majorly consisted of male married fans with an average age of 47 years and an earnings around $30-50 thousands. Nevertheless currently NASCAR is attempting to increase its target market to the young growing population and kinds also. To increase the market segment of its market NASCAR must modify its marketing strategies to attract more age and lower its costs to go into in the market sector with a low typical earnings.( htt1).


The mental qualities of the majority 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 choose to acquire products with a NASCAR brand. They are quite extrovert and are willing to join other fans while racing. They desire quality racing with low rate at practical place. Although Aes Corporation B Global Sourcing Initiative Case Study Analysis has tried to increase the quality of its racing by presenting stage racing, they also have tried to lower rates and make the occasion more convenient by presenting live racing.


Behavioural segmentation of NASCAR is based upon the behaviour of fans in terms of enjoying the race live on the tv or by going in the occasions. Presently, the fans preference is towards viewing the race at home on television rather than going, as the customer experience at NASCAR tracks is not beneficial as well as costly.

Target audience.


Among the potential target audience of Aes Corporation B Global Sourcing Initiative Case Study Solution was Hispanics; the young and growing population of United States. The marketplace section has great potential for NASCAR as the population was growing at a greater rate and it was anticipated to end up being thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014. The section shows affinity with automobile culture, but require a more concentrated marketing towards welcoming the sector towards racing.


Kids are likewise one of the potential target market segment for NASCAR, as they are more linked socially than other groups. Vehicle racing video games developed by Aes Corporation B Global Sourcing Initiative Case Study Help can be a potential source of acquiring attention of kids towards NASCAR track racing. NASCAR needs more attention towards personalizing and enhancing its digital features to attract the kids target market.

Generation Y.
Generation Y target market consists of those who spent five times more resources on discretionary expenditures i.e. buying tickets for racing events, than others. This huge expense makes the section potential for NASCAR marketing strategy of increasing its fan base. The market section is also simple to approach as 81% of the Y Generation customer uses Facebook the usage and every day is twice of using tv and radio. The market section views sports as a social occasion, rather than adherence to sport. The marketplace section considers NASCAR as a company lacking in producing a multiculturalism environment. Aes Corporation B Global Sourcing Initiative Case Study Help should take different actions to improve the experience of Generation Y consumers in its occasions.

5 C's of Marketing

5 C's of marketing helps in taking choices 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, ecological and legal and is mentioned above.


Aes Corporation B Global Sourcing Initiative Case Study Analysis is an auto racing company with having USP of high quality automobile racing with a worldwide structure. Its sector is sports group and occasions.


Collaborations consists of suppliers, providers and alliances of Aes Corporation B Global Sourcing Initiative Case Study Analysis. It is collaborated with various racing teams which are taking part in racing. It also collaborated with Turners Sport for digital rights. NASCAR utilized to make money check of around $15 million annually from Turner Sports. There are variety of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every video which is shoot throughout race at track.


The client of Aes Corporation B Global Sourcing Initiative Case Study Solution are its audiences. They target consumers with having age of 15-60 years. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and produce generational loyalty.


Teams usually represents sponsors in NASCAR and the medium of marketing is motorists. These chauffeurs can go against NASCAR if they got much better opportunity in terms of prizes and tv direct exposure.

Marketing Strategies.

1. Maintaining and establishing Facebook Page.
One of the potential target audience sections for NASCAR is Hispanics which is the growing population section of U.S.A. but unfortunately NASCAR had actually been unable to bring in the this targeted segment. In order to attract the young growing generation the NASCAR should market by using social networks like Facebook. It should establish a Facebook page including the details relating to the races and the places of tracks to make the customer helpful about the core operations of Aes Corporation B Global Sourcing Initiative Case Study Analysis. It needs to also upgrade its Facebook page on everyday basis to supply details about its upcoming occasions. This would make the target audience section more useful about the business and would result in drawing in big fans base.
2. Establishing and Updating Accounts of Secret Drivers.
NASCAR chauffeurs has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Display). The major reason behind it is that, the racers mostly play in groups and are unable to construct an essential account and preserve a close contact with fans. The poor contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is an important aspect for attracting audiences towards tracks and towards tv. The star power for the motorists at NASCARA might be improved by creating and upgrading accounts of essential chauffeurs by NASCARA itself. This would get rid of the requirement of forcing chauffeurs to maintain their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Developing New Games and improving present games for kids.
Kids spent most of their time on playing games and utilizing mobile phones. But unfortunately, 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 bring in these kids, NASCARA ought to enhance its existing racing video games by introducing customization in the cars and trucks i.e. altering colours, selection of speed, presenting group racing in the game, utilizing much better graphics connected to the racing tracks and presenting different levels in the video game. All these adjustments in the present video game would supply better experience to kids.
Along with it, NASCAR should also build new video games related to racing like kids racing with kids characters as motorists, cartoon racing with racing between various animation characters with an option of picking the preferred animation character for the kids. These techniques would make it possible for the business to bring in one of its possible target segments.
4. Presenting multiculturalism at occasions.
Aes Corporation B Global Sourcing Initiative Case Study Solution events are consisted of fans with extremely few cultural diversity, due to expense of arrival in occasions, making it unsightly for the clients perceiving sport events as get-togethers i.e. Generation Y clients. As the Generation Y customers are a possible target audience for NASCAR, therefore the company ought to take specific procedures to attract this potential target market. It must adopt methods to draw in the consumers far from the tracks location with various culture. The method to do so could be supplying unique discounts on tickets or free tickets to audiences coming from a specific range or from another state. It would increase cultural diversity of the fans and would make Generation Y clients more satisfied.
5. Improving Customer Experience at Tracks.
Since on the race day audiences got dissatisfied, NASCAR should work on infrastructure and facilities at tracks. Viewers have lots of expectations from NASCAR due to the fact that in same market other companies are providing better services than NASCAR. IF NASCAR don't deal with this concern then its fans may moved to its competitors. According to fans there were not appropriate centers were offered as compare to other sports service providers. So NASCAR ought to ensure that it provide appropriate facilities that includes cleaned up washrooms, comfortable seating plan. They must likewise provide WIFI services and availability of credit cards throughout that track. It ought to be also make sure that there are enough jumbo turns placed at all required places. There must be also food stalls that offer quality food to viewers. In this way viewers will be having enjoyable experience at the day of event. (See Appendix B).

Marketing Budget plan

Marketing budget plan made on the basis of the above techniques for the duration of 5 years from 2011 to 2015, shows the cost associated information for the marketing methods. (See Appendix B). It can be seen that strategy 5 of improving consumer experience at tracks would require highest preliminary financial investment and expense and strategy 4 of introducing multiculturalism will need lowest initial investment with least expensive further annually expense. The company ought to prioritize the resource allocation on these techniques on the basis of its available resources and the potential advantages which the strategy would supply.
KEEP IN MIND: The worths about cost are assumed on rational basis due the absence of figures and truths connected to cost in the case study. Inflation rate of United States is assumed to be 10%.

On the basis of deep analysis of the internal and external factors of Aes Corporation B Global Sourcing Initiative Case Study Analysis causing the decrease of television viewership rate and presence rate at tracks, the above marketing methods are suggested to NASCAR to increase its fan base in long run. These methods would deal with internal factors like bad client experience at tracks, insufficient social media marketing, incapable digital medias like games, lack of culturalisms at tracks etc., along with with external factors like shifting of fans towards other sports, demographical modifications in America and changing domesticity styles.