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 Automobile Vehicle Racing) is an organization carrying out series of Stock Car racing in United States and functioning as a sanctioning body for driving the rules for Stock Cars and truck Racing. The company was founded in 1947, by "Huge Bill" France. NASCAR organize Stock Car Racing occasions in United States with the presence of about 130000 viewers on average in 2005. It also transmitted its occasions in about 150 countries. Stock Automobile Racing by NASCAR is the 2nd biggest viewer sport, with highest number of sponsors. It has about 500 sponsors contributing billions of dollars in its earnings. The other sources of profits for Aes Corporation B Global Sourcing Initiative Case Study Solution includes; 10% of the total revenue from television rights, sanctioning costs i.e. $1-2 million per race, and licencing NASCAR brand name to companies.

NASCAR has a closed business culture with the non-interventionist technique. The building of Automobile of Tomorrow by NASCAR, with an intention of safety for the motorists, brought numerous tensions among the stakeholders of the sport.
Executive Summary
The communication audit, performed in 2010, exposed that regardless of the truth that the business highly rely on the interactions between its stakeholders, there was no identifiable company interaction method. (

The audit mentioned different lacking of NASCAR in regards to lack of internal integration, absence of fan management technique and absence of digital and social media of marketing. The business has complex ecosystem with independent tracks, teams and chauffeurs. This structure with closed corporate culture bring various challenges in speeding up a modification. Other partners in ecosystem consists of the media networks i.e. television and radio, and business online marketers.

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

Issue Declaration.

The company is presently dealing with the issue of declining rates of attendance at racing tracks and rates of television viewers. This can put a significant effect on its earnings from sponsors, media rights, and from other sources of profits.

Situational Analysis.

Although the company was quite successful till 2005 with its standard marketing techniques, however right after 2005 the business begins dealing with different issues consisting of decline of its fan base. Numerous external along with internal aspects are accountable for the decrease. Internal aspects include; insufficient financial investment in social networks and other digital medias of.

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

SWOT Analysis.


NASCAR core competencies includes it has rights of dictating rules as sanctioning body. Rules and guidelines regarding professional stock car racing are determined by NASCAR like if any group with needed abilities and resources can get in into races by following guidelines and guidelines determined by NASCAR. All the occasions of NASCAR are sponsored by corporates due to the fact that of biggest brand commitment of fans towards brand names advertised by Aes Corporation B Global Sourcing Initiative Case Study Analysis.

Weak points.

Weaknesses in SWOT Analysis are thought about as external elements. Weaknesses includes the elements that stops business to carry out at required level of effectiveness. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They generally used to form guidelines and other needed processes without intervention of others which results in bad collaboration. NASCAR establishes Vehicle of Tomorrow without partnership so result is that chauffeurs did not like that idea. As this is racing sport so covering of sports by media is likewise challenging. It was also found that NASCAR had no effective strategy for service communication. If it took place off track, they do not understand how to deal with issue. Ineffective service interaction leads to that they don't have clear direction for their long term goals. They do not know that where they wish to see this sport in future.
Porter's 5 Forces Analysis

NASCAR normally utilized to rely on conventional media sources like regional paper for publicity of its sports. NASCAR also came to understand from these conventional media outlets that sport was hard to cover. When sports fans were asked concerning popular stars and stars then NASCAR motorist was not found even in top twenty responses.


Economic down turn was experienced in late 2000 which can be hazard for NASCAR due to the fact that if there is financial down turn then people would be having less return on financial investment. Economic down turn likewise results in increase fuel costs which likewise affected NASCAR. Now if NASCAR make significant investments in new sections which are based on brand-new consumers then it may deal with negative comments from its core fan base.

Porter's 5 Forces Analysis

Porter's 5 forces is a design that is used to evaluate market in which business is working. It helps in identifying what are strengths and weak point of any particular industry. It recommend that every market is various from one another. It is necessary to understand market in which business is working due to the fact that NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are used to determine profitability, intensity and attractiveness of Aes Corporation B Global Sourcing Initiative Case Study Analysis business.

Competitive Rivalry

These chauffeurs can go versus NASCAR if they got much better opportunity in terms of prizes and tv exposure. If viewers delight in other race cars and drivers more than NASCAR then viewers can shift to those other interesting cars and drivers. NASCAR could be having danger from its 2 direct competitors that is Formula 1 and Moto GP.
Swot Analysis
Supplier Power

If business shifts from one provider to another, the supplier power shows the number of providers are available in market and what is the expense associated with provider. In this industry there is supply monopoly due to the fact that chauffeurs with needed resources and abilities are limited.

Buyer Power

In the case of NASCAR consumers are its viewers. Viewers can switch to other competitors easily since viewers will having low switching cost.

Danger of Replacement

Substitutes are referred as alternatives. The replacements in this case can be other entertainment indicates like viewers can move to other sports. So there are large range of replacements are readily available in this circumstance which suggests that threat of substitute is high.

Danger of New Entry

In the case of NASCAR danger of new entry is low. They require to develop automobiles and racing tracks and likewise needs to pay large amount to drivers for changing.

PESTEL Analysis


As NASCAR is working in numerous markets so it requires to face various policies. It is likewise kept in mind that NASCAR has faced increased analysis relating to regulative. Every federal government has different top priority so NASCAR has actually to be prepared for it as priority can be shifted to other sector.


Financial factors includes taxation rate, exchange rate, financial performance of that particular business, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be impacted. NASCAR can utilize abilities of staff members to create new opportunities and enhance existing opportunities.


Each has various social worths and standards. It assists in understanding concerning society and choice of consumers.


In this case of NASCAR it can be kept in mind that business are heavily investing for research study and development. NASCAR should likewise work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Legal plays a crucial function in every nation since every country has various legal terms and conditions. Aes Corporation B Global Sourcing Initiative Case Study Solution needs to be make sure that they secure their legal rights in every county so any business does not damage to its legal rights.


Environmental aspects are likewise important for every business. Because generally federal governments do not permit those service which can harm to environment. These environmental aspects includes laws regarding contamination, climate change, safe garbage disposal, policies regarding insurance and so on. NASCAR requires to ensure that its cars and trucks are not producing contamination more than acceptable level.

7 P's of Marketing


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


Prices method of NASCAR for its race events tickets is based upon the place and value of the racing occasions. Together with race occasions tickets, NASCAR likewise charge different service fees to its stakeholders and makes earnings. For instance it charged approving charges of $1-2 million per race typically in 2005.


Promotional method of Aes Corporation B Global Sourcing Initiative Case Study Solution is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races. However, the company is not completely relied upon its fan base for its promo and promote through regional radio stations too. The business has likewise adopted the merchandising media of promo, in which the business sells merchandises with its logo.


NASCAR have its racing tracks in different cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in the majority of the cities in United States to understand nationwide popularity.


Nestle individuals method is comprised of supplying better experience to its audiences, its fan base and to all of its stakeholders. Individuals are a crucial aspect of Aes Corporation B Global Sourcing Initiative Case Study Help A marketing technique as its events are the source of home entertainment for crowd. Its individuals strategy consists of efforts to supply much better experience to its Fans, Race Drivers, Crew, Occasion Organizers etc., all of which come under people technique of NASCAR.


Numerous business procedures are required to conduct racing occasions in an efficient way. These procedures consist of; proper schedule of time, arrangement for spectators, offering tickets, arrangement of area for sponsors, handling logistics and so on. These all processes contribute I constructing NASCAR image, improving spectators experience and increasing fan base.

Physical Proof.

Crucial physical proofs for the NASCAR includes the existence of its racing tracks, stock vehicles and racing occasions. Together with it, its merchandising brands including t-shirts, caps, goodies etc., likewise function as a physical evidence for NASCAR.

Product Life Cycle Evaluation.

The racing events by NASCAR was presented on June 19, 1949. At the very first stage competition for NASCAR was low, as the competitors drove the cars and trucks comparable to the vehicles driven by regular people.


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

In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he changed NASCAR from a local Sport popular company into one with global fan base. He initiated a new era of profitable sponsorships and television agreements for NASCAR.


The maturity duration for NASCAR began with the efforts of William France Jr., with the business having wide variety of earnings sources. The business has about 500 sponsors with relaying its occasions in about 150 nations. The company has a great deal of tracks in the majority of the cities of United States.


The major causes of decline consist of the financial crisis of 2008, which increased the expense of getting here at tracks for audiences due to increasing fuel costs, and the shifting of its fan base towards other sports.

Market Division.

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


The geographical segmentation of Aes Corporation B Global Sourcing Initiative Case Solution is based upon the geographical existence of its tracks in numerous states and cities in United States, and the tv broadcasting of its events in numerous countries. The business has 23 tracks in about 20 states of America and has tv broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation offers the company regional in addition to global fan base.


The group segmentation of NASCAR is also highlydiverse based upon the gender, earnings and age of the consumer. Its present fan base is majorly comprised of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. Currently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the market sector of its market NASCAR should modify its marketing strategies to draw in more age groups and lower its costs to go into in the marketplace segment with a low average income.( htt1).


NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to buy tickets and see the races as soon as in a week. NASCAR has attempted to increase the quality of its racing by presenting stage racing, they likewise have actually tried to lower rates and make the event more practical by introducing live racing.


Behavioural division of Aes Corporation B Global Sourcing Initiative Case Study Help 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 choice is towards seeing the race in the house on tv rather than going, as the client experience at NASCAR tracks is not beneficial along with costly. This choice makes the rates for attendance lower than the rates for television audiences. NASCAR needs to alter the behaviour of its fan base by presenting qualitative services at its tracks.

Target audience.


Among the prospective target market of Aes Corporation B Global Sourcing Initiative Case Study Help was Hispanics; the young and growing population of United States. The marketplace sector has excellent potential for NASCAR as the population was growing at a greater rate and it was expected to end up being thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the section shows affinity with car culture, however require a more focused marketing towards inviting the section towards racing.


Kids are also one of the prospective target market sector for NASCAR, as they are more connected socially than other groups. Automobile racing video games established by Aes Corporation B Global Sourcing Initiative Case Study Analysis can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR needs more attention towards customizing and improving its digital features to draw in the kids target market.

This big expense makes the section capacity for NASCAR marketing method of increasing its fan base. The market sector considers NASCAR as a company doing not have in creating a multiculturalism atmosphere. NASCAR needs to take various steps to enhance the experience of Generation Y consumers in its events.

5 C's of Marketing

5 C's of marketing assists in taking decisions regarding marketing.


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


NASCAR is a car racing company with having USP of high quality car racing with a worldwide structure. Its sector is sports group and occasions. Its target audience is males in the age group of 15-60 years. Business has actually closed corporate culture and having non-interventionist approach.


Collaborations includes suppliers, suppliers and alliances of Aes Corporation B Global Sourcing Initiative Case Study Solution. It is teamed up with various racing teams which are taking part in racing. It likewise worked together with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million each year from Turner Sports. There are variety of cons behind this offer. For example NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account and even mobile application. Turner Sport likewise had rights of each and every single video which is shoot throughout race at track.


The client of Aes Corporation B Global Sourcing Initiative Case Study Analysis are its audiences. They target clients 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 children and create generational commitment.


Teams generally represents sponsors in NASCAR and the medium of advertising is drivers. These drivers can go against NASCAR if they got better opportunity in terms of prizes and television direct exposure.

Marketing Techniques.

1. Developing and Preserving Facebook Page.
Among the potential target audience segments for NASCAR is Hispanics which is the growing population sector of U.S.A. however regrettably NASCAR had been not able to draw 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 ought to develop a Facebook page containing the details concerning the races and the locations of tracks to make the consumer useful about the core operations of Aes Corporation B Global Sourcing Initiative Case Study Help. It needs to also upgrade its Facebook page on daily basis to supply information about its upcoming events. This would make the target market section more helpful about business and would lead to bring in big fans base.
2. Establishing and Updating Accounts of Key Drivers.
Aes Corporation B Global Sourcing Initiative Case Study Help motorists has a low star power as compare to players of other sports. The poor contacts with fans result in less attraction of viewers towards the racers and a low star power. Star power is a crucial factor for bring in viewers towards tracks and towards tv.
3. Establishing New Games and improving existing video games for kids.
Kids spent most of their time on playing games and using mobile phones. But sadly, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less brought in towards the sport. In order to attract these kids, NASCARA should enhance its existing racing video games by introducing personalization in the automobiles i.e. altering colours, choice of speed, introducing group racing in the video game, utilizing better graphics related to the racing tracks and presenting various levels in the game. All these modifications in the current video game would supply better experience to kids.
Together with it, NASCAR should likewise construct brand-new games associated with racing like kids racing with kids characters as drivers, animation racing with racing between numerous cartoon characters with an option of choosing the preferred cartoon character for the kids. These methods would allow the company to bring in one of its potential target sectors.
4. Introducing multiculturalism at events.
Aes Corporation B Global Sourcing Initiative Case Study Analysis events are consisted of fans with extremely few cultural diversity, due to expense of arrival in events, making it unappealing for the clients perceiving sport events as social occasions i.e. Generation Y customers. As the Generation Y clients are a potential target market for NASCAR, for that reason the company needs to take particular steps to attract this potential target market. It must embrace techniques to draw in the customers far from the tracks area with different culture. The strategy to do so could be supplying special discount rates on tickets or free tickets to viewers originating from a specific distance 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.
NASCAR needs to work on infrastructure and features at tracks because on the race day audiences got disappointed. Audiences have lots of expectations from Aes Corporation B Global Sourcing Initiative Case Study Analysis since in same market other companies are supplying better services than NASCAR. IF NASCAR don't work on this concern then its fans might shifted to its competitors.

Marketing Spending plan

Marketing budget made on the basis of the above methods for the duration of 5 years from 2011 to 2015, shows the cost related information for the marketing strategies. (See Appendix B). It can be seen that strategy 5 of enhancing consumer experience at tracks would require greatest initial financial investment and expense and method 4 of introducing multiculturalism will require most affordable initial investment with least expensive even more annually cost. The company should prioritize the resource allocation on these methods on the basis of its readily available resources and the possible benefits which the method would offer.
KEEP IN MIND: The values about expense are assumed on logical basis due the absence of realities and figures associated with cost in the event research study. Inflation rate of United States is assumed to be 10%.

On the basis of deep analysis of the internal and external elements of Aes Corporation B Global Sourcing Initiative Case Study Analysis triggering the decrease of tv viewership rate and attendance rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long run. These techniques would handle internal aspects like bad customer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., as well as with external aspects like shifting of fans towards other sports, demographical changes in America and altering family life styles.