Competition Policy In The European Union And The Power Of Microsoft Online Case Study Analysis

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Competition Policy In The European Union And The Power Of Microsoft Case Study Solution and Analysis


NASCAR (National Association for Stock Automobile Auto Racing) is an organization conducting series of Stock Vehicle racing in United States and acting as a sanctioning body for driving the rules for Stock Vehicle Racing. 2) Stock Vehicle Racing by NASCAR is the 2nd largest spectator sport, with greatest number of sponsors. 1) The other sources of profits for Competition Policy In The European Union And The Power Of Microsoft Case Study Solution includes; 10% of the overall income from tv rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand name to companies.

NASCAR has a closed corporate culture with the non-interventionist technique. The structure of Car of Tomorrow by NASCAR, with an intention of security for the drivers, brought numerous stress among the stakeholders of the sport.

The communication audit, carried out in 2010, exposed that in spite of the reality that the business highly depend on the interactions between its stakeholders, there was no recognizable organisation communication method. The market's target clients, instructions and goals were all unknown.

The audit pointed out various doing not have of NASCAR in terms of absence of internal combination, absence of fan management method and lack of social and digital media of marketing.

Competition Policy In The European Union And The Power Of Microsoft Case Study Help viewers was extremely devoted to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate online marketers.

Issue Statement.

The company is currently dealing with the problem of decreasing rates of participation at racing tracks and rates of television viewers. This can put a substantial effect on its incomes from sponsors, media rights, and from other sources of earnings.

Situational Analysis.

The business was rather effective till 2005 with its standard marketing strategies, however soon after 2005 the business begins dealing with numerous problems consisting of decrease of its fan base. Several external along with internal factors are accountable for the decline. Internal factors include; inadequate investment in social networks and other digital medias of.

Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and create generational loyalty. Other difficulties for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience enabling access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, 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 proficiencies on which business performance or business success based upon. Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis core proficiencies includes it has rights of dictating rules as approving body. Policies and guidelines relating to professional stock cars and truck racing are dictated by NASCAR like if any group with needed abilities and resources can enter into races by following guidelines and guidelines determined by NASCAR. So NASCAR has monopoly it this aspect. 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 US. Its races were utilized to transmit in more than 150 countries around the globe with more than $56 million revenues. The primary sources of their profits originate from television rights, sanctioning charges, 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 corporate sponsors. All the events of NASCAR are sponsored by corporates because of most significant brand name loyalty of fans toward brand names advertised by Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis. (See Appendix A).


Weak Points in SWOT Analysis are thought about as external factors. Weaknesses includes the elements that stops company to perform at needed level of efficiency. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist technique. They usually used to form guidelines and other needed processes without intervention of others which leads to poor partnership. NASCAR establishes Car of Tomorrow without collaboration so result is that motorists did not like that principle. As this is racing sport so covering of sports by media is likewise hard. It was also discovered that NASCAR had no reliable strategy for service communication. If it happened off track, they do not know how to deal with issue. Inefficient business interaction results in that they do not have clear instructions for their long term objectives. They don't know that where they want to see this sport in future.


NASCAR typically used to rely on standard media sources like regional newspaper for publicity of its sports. NASCAR also came to understand from these standard media outlets that sport was challenging to cover. When sports fans were asked concerning popular celebs and stars then NASCAR motorist was not found even in leading twenty reactions.


Economic down turn was experienced in late 2000 which can be threat for NASCAR due to the fact that if there is economic down turn then people would be having less return on financial investment. Economic down turn likewise results in boost fuel costs which likewise impacted NASCAR. Now if NASCAR make substantial investments in new segments which are based on new customers then it may deal with unfavorable remarks from its core fan base.

Porter's Five Forces Analysis

It is essential to comprehend market in which company is working because NASCAR's bottom line i.e. net profit is greatly depends on this. There are 5 forces that are utilized to recognize profitability, strength and attractiveness of NASCAR organisation.

Competitive Competition

This force suggests ability of rivals. Teams typically represents sponsors in NASCAR and the medium of marketing is motorists. It can be said that chauffeurs and race automobiles are rivals. If they got much better opportunity in terms of prizes and tv exposure, these chauffeurs can go against Competition Policy In The European Union And The Power Of Microsoft Case Study Solution. If viewers delight in other race cars and trucks and motorists more than NASCAR then viewers can shift to those other interesting vehicles and drivers. NASCAR could be having risk from its 2 direct competitors that is Formula 1 and Moto GP. They need to develop competitive advantages for drivers so they do not move to other rivals.

Provider Power

The provider power suggests the variety of providers are offered in market and what is the cost associated with supplier if business shifts from one supplier to another. In this market there is supply monopoly since motorists with required abilities and resources are limited.

Buyer Power

This force is regarding to clients that is it simple for customers to move to other products. If there is more changing expense is associated then clients are less likely to switch. When it comes to NASCAR consumers are its viewers. Because audiences will having low changing expense, audiences can switch to other competitors quickly.

Threat of Replacement

Alternatives are referred as options. The replacements in this case can be other entertainment implies like viewers can shift to other sports. There are broad variety of alternatives are offered in this scenario which suggests that threat of alternative is high.

Hazard of New Entry

It is specified as how it is simple for any business to go into in that particular industry. In the case of Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis threat of brand-new entry is low. If any business needs to go into in this company than they have to make heavy financial investments, due to the fact that. They require to build vehicles and racing tracks and likewise needs to pay hefty total up to drivers for changing.

PESTEL Analysis


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


Economic elements includes taxation rate, currency exchange rate, economic performance of that specific business, conditions of labour market, inflation rate and so on. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be affected. NASCAR can leverage abilities of employees to create brand-new chances and improve existing chances.


Every society is various from each other. Each has various social values and standards. It assists in comprehending regarding society and preference of consumers. Social factors includes traditions, culture, attitudes towards specific services and products, demographics, standards, interests etc. It can be concluded that advertising through other means instead of traditional (i.e. paper) can be chosen in this society.


In this case of NASCAR it can be kept in mind that business are greatly spending for research and advancement. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.


Because every nation has various legal terms and conditions, Legal plays an essential function in every country. Competition Policy In The European Union And The Power Of Microsoft Case Study Solution requires to be make sure that they secure their legal rights in every county so any business does not hurt to its legal rights.


Environmental factors are likewise important for each company. Because usually governments don't enable those business which can hurt to environment. These environmental aspects includes laws relating to contamination, climate change, safe waste disposal, policies relating to insurance and so on. NASCAR needs to make certain that its automobiles are not generating pollution more than appropriate level.

7 P's of Marketing


The items of Competition Policy In The European Union And The Power Of Microsoft Case Study Solution in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning rules for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).


Prices technique of NASCAR for its race occasions tickets is based upon the venue and significance of the racing occasions. Along with race occasions tickets, NASCAR also charge various service charge to its stakeholders and earns revenue. For instance it charged sanctioning charges 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 audiences for NASCAR races.


NASCAR have its racing tracks in numerous cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in most of the cities in United States to comprehend nationwide appeal.


Nestle people strategy is consisted of providing better experience to its viewers, its fan base and to all of its stakeholders. People are an essential aspect of Competition Policy In The European Union And The Power Of Microsoft Case Study Solution A marketing strategy as its occasions are the source of home entertainment for crowd. Its people technique consists of efforts to supply better experience to its Fans, Race Drivers, Crew, Event Organizers etc., all of which come under people method of NASCAR.


A number of business procedures are needed to carry out racing events in an effective method. These processes include; correct schedule of time, plan for viewers, offering tickets, arrangement of space for sponsors, handling logistics and so on. These all procedures contribute I building NASCAR image, enhancing spectators experience and increasing fan base.

Physical Evidence.

Essential physical evidences for the NASCAR consists of the presence of its racing tracks, stock vehicles and racing occasions. In addition to it, its merchandising brand names consisting of t-shirts, caps, goodies and so on, likewise act as a physical proof for NASCAR.

Item Life Process Assessment.

The racing occasions by NASCAR was presented on June 19, 1949. At the very first stage competitors for NASCAR was low, as the rivals drove the vehicles similar to the vehicles driven by ordinary individuals.


After performing its very first race successfully the business moved towards developing its own tracks. The very first Competition Policy In The European Union And The Power Of Microsoft Case Study Solution based track, specifically the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by facility of more raceways including Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards transmitting its races on tv in 1979. The very first event broadcasted on television was flag-to-flag coverage of Daytona.

In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a regional Sport popular organization into one with international fan base. He initiated a brand-new period of rewarding sponsorships and tv agreements for NASCAR.


The maturity duration for NASCAR started with the efforts of William France Jr., with the company having large range of profits sources. The business has about 500 sponsors with transmitting its occasions in about 150 nations. The business has a great deal of tracks in the majority of the cities of United States.


The decline in the business's offerings began after 2005 with average attendance rate per race decreased by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The major reasons for decrease consist of the monetary crisis of 2008, which increased the cost of reaching tracks for audiences due to increasing fuel prices, and the shifting of its fan base towards other sports.

Market Division.

The market division of Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Competition Policy In The European Union And The Power Of Microsoft Case Solution is based upon the geographical presence of its tracks in numerous states and cities in United States, and the tv broadcasting of its occasions in various countries. The business 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 huge geographical division offers the business local as well as international fan base.


The group segmentation of Competition Policy In The European Union And The Power Of Microsoft Case Study Help is also highlydiverse based upon the gender, earnings and age of the customer. To increase the market sector of its market NASCAR should revise its marketing methods to attract more age groups and lower its prices to enter in the market section with a low average earnings.


NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to purchase tickets and see the races when in a week. NASCAR has actually attempted to increase the quality of its racing by presenting stage racing, they also have actually tried to lower rates and make the occasion more convenient by presenting live racing.


Behavioural division of Competition Policy In The European Union And The Power Of Microsoft Case Study Solution is based upon the behaviour of fans in regards to watching the race live on the tv or by entering the occasions. Presently, the fans choice is towards seeing the race in the house on tv instead of going, as the customer experience at NASCAR tracks is not favourable along with costly. This choice makes the rates for attendance lower than the rates for tv audiences. NASCAR has to change the behaviour of its fan base by introducing qualitative services at its tracks.

Target Market.


One of the potential target market of Competition Policy In The European Union And The Power Of Microsoft Case Study Solution was Hispanics; the young and growing population of United States. The marketplace segment 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 section has increasing wealth rate with about $1 trillion of wealth in 2014. The segment shows affinity with vehicle culture, but need a more focused marketing towards inviting the sector towards racing.


Kids are likewise one of the potential target audience section for NASCAR, as they are more linked socially than other groups. Developing fan base amongst kids can offer a possible increase in the number of fans for racing due to their connectivity. Kids spend most of their times in using smart devices and playing video games. Automobile racing video games developed by Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis can be a potential source of gaining attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital features connected to kids are not capable of getting the attention. NASCAR requires more attention towards tailoring and enhancing its digital features to draw in the kids target audience.

This substantial expenditure makes the segment capacity for NASCAR marketing strategy of increasing its fan base. The market segment thinks about NASCAR as an organization lacking in developing a multiculturalism atmosphere. NASCAR ought to take different actions to enhance the experience of Generation Y customers in its events.

5 C's of Marketing

5 C's of marketing helps in taking decisions relating to marketing. These 5 C's requirements to be evaluated appropriately for taking any marketing decision. These 5 C's stands for Climate, Business, Collaborators, Clients and Rivals.


It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE means political, economic, social, technical, environmental and legal and is specified above.


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


Collaborations consists of distributors, providers and alliances of NASCAR. NASCAR used to get pay check of around $15 million annually 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 customer of Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis are its audiences. They target consumers 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 youngsters and produce generational loyalty.


The direct rivals of NASCAR are Formula 1 and Moto GP. Groups typically represents sponsors in NASCAR and the medium of advertising is chauffeurs. Therefore it can be said that chauffeurs and race automobiles are rivals. If they got much better opportunity in terms of prizes and tv direct exposure, these motorists can go against NASCAR.

Marketing Strategies.

1. Establishing and Maintaining Facebook Page.
One of the possible target markets sectors for NASCAR is Hispanics which is the growing population section of U.S.A. however regrettably NASCAR had actually been unable to bring in the this targeted section. It ought to establish a Facebook page including the details regarding the races and the areas of tracks to make the consumer helpful about the core operations of NASCAR.
2. Establishing and Updating Accounts of Secret Drivers.
NASCAR drivers has a low star power as compare to players of other sports. Its ranks 7th in regards to star power (see Case Display). The major reason behind it is that, the racers mainly play in teams and are not able to build a key account and preserve a close contact with fans. The bad contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is a crucial factor for drawing in viewers towards tracks and towards television. The star power for the motorists at NASCARA could be improved by developing and upgrading accounts of crucial drivers by NASCARA itself. This would eliminate the requirement of forcing motorists to keep their accounts and would result in increasing fans attention towards NASCARA motorists.
3. Establishing New Games and improving current video games for kids.
In order to attract these kids, NASCARA ought to improve its existing racing games by presenting personalization in the vehicles i.e. altering colours, selection of speed, introducing group racing in the game, utilizing much better graphics related to the racing tracks and presenting numerous levels in the game. All these modifications in the present video game would offer much better experience to kids.
Along with it, NASCAR needs to also develop brand-new games connected to racing like kids racing with kids characters as drivers, animation racing with racing between different animation characters with a choice of choosing the preferred animation character for the kids. These methods would allow the business to attract one of its possible target segments.
4. Introducing multiculturalism at events.
Competition Policy In The European Union And The Power Of Microsoft Case Study Help events are comprised of fans with very few multiculturalism, due to cost of arrival in occasions, making it unappealing for the customers viewing sport events as social occasions i.e. Generation Y clients. As the Generation Y clients are a prospective target audience for NASCAR, therefore the business should take specific procedures to attract this potential target market. It must embrace methods to draw in the clients far from the tracks location with different culture. The technique to do so could be offering unique discounts on tickets or totally free tickets to viewers originating from a particular distance or from another state. It would increase multiculturalism of the fans and would make Generation Y customers more pleased.
5. Improving Client Experience at Tracks.
NASCAR needs to work on infrastructure and facilities at tracks due to the fact that on the race day audiences got dissatisfied. Audiences have lots of expectations from Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis since in same industry other companies are offering much better services than NASCAR. IF NASCAR do not work on this issue then its fans might shifted to its rivals.
Marketing Spending plan.
Marketing budget plan made on the basis of the above methods for the period of 5 years from 2011 to 2015, reveals the expense associated information for the marketing techniques. It can be seen that technique 5 of improving customer experience at tracks would require greatest preliminary financial investment and expense and strategy 4 of introducing multiculturalism will require most affordable initial investment with least expensive even more per year cost.
KEEP IN MIND: The values about expense are presumed on logical basis due the absence of figures and truths connected to cost in the event study. Inflation rate of United States is assumed to be 10%.


On the basis of deep analysis of the external and internal factors of Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis triggering the decrease of television viewership rate and participation rate at tracks, the above marketing methods are suggested to NASCAR to increase its fan base in long term. These methods would manage internal aspects like bad client experience at tracks, inadequate social media marketing, incapable digital medias like games, lack of culturalisms at tracks etc., as well as with external elements like shifting of fans towards other sports, demographical changes in America and altering domesticity styles.

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