Competition Policy In The European Union And The Power Of Microsoft Case Study Solution & Analysis
NASCAR (National Association for Stock Car Vehicle Racing) is a company carrying out series of Stock Cars and truck racing in United States and acting as an approving body for driving the rules for Stock Automobile Racing. 2) Stock Vehicle Racing by NASCAR is the second 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 consists of; 10% of the total revenue from tv rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed corporate culture with the non-interventionist method. The structure of Car of Tomorrow by NASCAR, with an intent of safety for the motorists, brought various stress among the stakeholders of the sport.
The interaction audit, conducted in 2010, revealed that in spite of the fact that the business extremely depend on the interactions between its stakeholders, there was no identifiable company communication technique. The market's target customers, instructions and goals were all unknown.
The audit pointed out various lacking of NASCAR in terms of lack of internal combination, absence of fan management method and absence of digital and social media of marketing.
Competition Policy In The European Union And The Power Of Microsoft Case Study Help audiences was extremely loyal to the sport and the brand names related to the NASCAR, making it appealing for sponsors and business online marketers.
The company is presently dealing with the issue of decreasing rates of attendance at racing tracks and rates of tv viewers. This can put a considerable influence on its incomes from sponsors, media rights, and from other sources of revenue.
Although the business was rather effective till 2005 with its traditional marketing strategies, but soon after 2005 the company begins dealing with various problems consisting of decrease of its fan base. A number of external as well as internal factors are responsible for the decline. Internal elements consist of; inadequate investment in social media 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 youngsters and create generational commitment. Other obstacles for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi gain access to, etc.
In SWOT analysis, strengths specified as business's qualities which are different from its competitors. These are business's core proficiencies on which company 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 sanctioning body. Regulations and rules relating to professional stock automobile racing are determined by NASCAR like if any group with required abilities and resources can enter into races by following guidelines and guidelines determined by NASCAR. NASCAR has monopoly it this aspect. Its strengths likewise includes that it has title of second biggest spectator 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 countries around the globe with more than $56 million earnings. The main sources of their profits originate from television rights, sanctioning fees, sponsorship and licensing. It has longest season of 10 months and having ownership of three nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has likewise big resource of fans and business sponsors. All the occasions of NASCAR are sponsored by corporates since of most significant brand commitment of fans toward brands marketed by Competition Policy In The European Union And The Power Of Microsoft Case Study Help. (See Appendix A).
Weak Points in SWOT Analysis are thought about as external factors. Weaknesses includes the factors that stops business to carry out at required level of performance. Weaknesses of NASCAR includes its close culture which is non collective. They have non-interventionist approach. They usually utilized to form guidelines and other needed procedures without intervention of others which results in poor partnership. NASCAR develops Automobile of Tomorrow without collaboration so result is that chauffeurs 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 method for business interaction. They do not know how to deal with problem if it took place off track. Ineffective business interaction results in that they don't have clear instructions for their long term objectives. They don't know that where they wish to see this sport in future.
Opportunities in SWOT analysis are external aspects which can be beneficial to business or the external elements on which company is having competitive advantage. NASCAR usually used to depend on standard media sources like local paper for promotion of its sports. Normally these conventional media sources attempt to cover their house group and particular type of occasions. NASCAR likewise familiarized from these conventional media outlets that sport was hard to cover. Media landscape likewise altered from traditional to digital landscape. Papers went out of business. NASCAR can deal with its capabilities to get optimal possible gain from this new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in digital and social media to get its benefits. Digital rights of NASCAR were also offered to Turner Sports. NASCAR used to earn money check of around $15 million annually from Turner Sports. There are variety of cons behind this deal. For example Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis had to get approval from Turner Sport if it wish to develop its Facebook page, twitter account and even mobile application. Turner Sport also had rights of every video which is shoot throughout race at track. If media sources like newspapers, magazines and cable channels wish to post videos of races on their respective pages then they are required to pay licensing charges to Turner Sport. NASCAR can work on conditions and terms and try to work out with Turner Sports to get optimal benefits of it. Star power plays very crucial role in generating incomes from every sport. It was kept in mind that NASCAR is lagging in this location i.e. star power. For instance when sports fans were asked relating to popular stars and stars then NASCAR chauffeur was not found even in top twenty reactions. NASCAR can put efforts in this area too for profits generation. They should guide their motorists that how they can become sport stars. Four strategic focuses which are generated by research team can likewise be served as chance for NESCAR. These four strategic focuses compares and analysis Competition Policy In The European Union And The Power Of Microsoft Case Study Help strategies.
Threats in SWOT analysis are defined as external elements that can risk to company's success. Economic down turn was experienced in late 2000 which can be risk for NASCAR because if there is economic down turn then individuals would be having less return on investment. Earning of people would be effected and they would be more conscious in investing their loan. Economic down turn also leads to boost fuel costs which also affected NASCAR. Since fans of NASCAR used to attend its occasion from cross countries. NESCAR had a rule of 65/25/10 for revenue distribution. 65 percent incomes from media rights would be dispersed to race tracks, 25 percent revenue would be distributed to completing group and remaining 10 percent would be kept by NESCAR which is sanctioning body. Competing group wanted to increase their portion of earnings from 25 percent due to the fact that of boost in running expense of a race group and likewise there is decline in the variety of full-season sponsorship. Because they are making huge financial investments to improve experience of fans, nescar likewise deals with dangers from other sponsors. For example which includes upgrading existing avenues, building brand-new avenues, offering Wi-Fi center and also offering other interactive mediums to interact sports on mobile phones. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their youngsters and develop generational commitment. The obstacle is that the family system in America was altering resulting in reduction of impact of married male fan base over their children. Along with it perceptions about car was also changing with perceiving cars and truck a lorry to reach at point B from point A, rather than as an enjoyable job. Now if Competition Policy In The European Union And The Power Of Microsoft Case Study Help make substantial investments in brand-new sectors which are based upon brand-new consumers then it might face negative comments from its core fan base.
Porter's Five Forces Analysis
Porter's 5 forces is a model that is used to evaluate industry in which company is working. It helps in identifying what are strengths and weak point of any specific market. It recommend that every industry is various from one another. Because NASCAR's bottom line i.e. net revenue is heavily depends on this, it is essential to understand market in which business is working. There are 5 forces that are used to recognize success, strength and attractiveness of Competition Policy In The European Union And The Power Of Microsoft Case Study Help business.
This force shows capability of competitors. Groups normally represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be said that chauffeurs and race cars and trucks are competitors. If they got better chance in terms of prizes and tv direct exposure, these motorists can go versus Competition Policy In The European Union And The Power Of Microsoft Case Study Help. Then viewers can move to those other fascinating vehicles and chauffeurs, if audiences delight in other race vehicles and motorists more than NASCAR. NASCAR could be having hazard from its 2 direct rivals that is Formula 1 and Moto GP. They require to create competitive advantages for drivers so they do not move to other competitors.
The supplier power indicates the number of suppliers are readily available in market and what is the cost related to supplier if company shifts from one provider to another. Due to the fact that motorists with needed abilities and resources are restricted, in this market there is supply monopoly.
This force is regarding to consumers that is it simple for customers to move to other items. Then clients are less likely to switch, if there is more changing cost is associated. When it comes to NASCAR consumers are its audiences. Audiences can change to other competitors quickly due to the fact that viewers will having low changing expense.
Danger of Alternative
Alternatives are referred as alternatives. The alternatives in this case can be other home entertainment suggests like viewers can shift to other sports. There are wide range of substitutes are readily available in this circumstance which recommends that risk of alternative is high.
Threat of New Entry
In the case of NASCAR risk of new entry is low. They require to build cars and racing tracks and likewise needs to pay significant amount to chauffeurs for changing.
As NASCAR is working in different markets so it needs to face various regulations. It is likewise kept in mind that NASCAR has actually faced increased analysis relating to regulatory. Every government has different concern so NASCAR has actually to be prepared for it as priority can be shifted to other sector.
Economic elements includes taxation rate, exchange rate, financial efficiency of that particular business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its competitors can be affected if there is government intervention in the marketing and sales sector. NASCAR can utilize abilities of workers to create brand-new opportunities and improve existing opportunities.
Each has different social values and standards. It helps in understanding relating to society and choice of customers.
In this case of NASCAR it can be noted that companies are heavily investing for research and development. NASCAR should also work on its media rights policy with Turner Broadcasting System.
Legal plays an essential role in every country due to the fact that every nation has various legal terms and conditions. Competition Policy In The European Union And The Power Of Microsoft Case Study Help requires to be make certain that they secure their legal rights in every county so any business does not hurt to its legal rights.
Environmental factors are likewise essential for every business. NASCAR requires to make sure that its cars are not producing pollution more than acceptable 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 item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates method of NASCAR for its race occasions tickets is based upon the place and value of the racing occasions. Along with race occasions tickets, NASCAR likewise charge various service charge to its stakeholders and makes revenue. For instance it charged sanctioning charges of $1-2 million per race typically in 2005.
Marketing technique of NASCAR 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.
NASCAR have its racing tracks in different 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 conduct its races in the majority of the cities in United States to grasp across the country popularity.
Nestle individuals technique is comprised of supplying much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential element of Competition Policy In The European Union And The Power Of Microsoft Case Study Solution A marketing method as its occasions are the source of home entertainment for crowd. Its individuals technique includes efforts to provide much better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under people technique of NASCAR.
A number of service processes are required to perform racing events in an effective method. These procedures include; correct schedule of time, arrangement for spectators, offering tickets, arrangement of space for sponsors, handling logistics etc. These all procedures contribute I constructing NASCAR image, improving viewers experience and increasing fan base.
Most important physical evidences for the NASCAR includes the presence of its racing tracks, stock automobiles and racing events. Along with it, its retailing brands including t-shirts, caps, goodies and so on, also serve as a physical proof for NASCAR.
Product Life Process Assessment.
The racing events by Competition Policy In The European Union And The Power Of Microsoft Case Study Solution was introduced on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the first phase competitors for NASCAR was low, as the competitors drove the automobiles similar to the vehicles driven by ordinary individuals.
After performing its first race successfully the company moved towards building its own tracks. The first Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis based track, specifically the Darlington Raceway track, was initiated 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 business moved towards transmitting its races on television in 1979. The very first occasion transmitted on television 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 regional Sport popular company into one with worldwide 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 vast array of earnings sources. The business has about 500 sponsors with relaying its occasions in about 150 countries. The company has large number of tracks in the majority of the cities of United States.
The decline in the company's offerings began after 2005 with typical participation rate per race decreased by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The major causes of decline consist of the monetary crisis of 2008, which increased the expense of arriving at tracks for audiences due to increasing fuel prices, and the shifting of its fan base towards other sports.
The market segmentation of Competition Policy In The European Union And The Power Of Microsoft Case Study Help can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Competition Policy In The European Union And The Power Of Microsoft Case Analysis is based upon the geographical presence of its tracks in various states and cities in United States, and the tv broadcasting of its events in various nations. The business has 23 tracks in about 20 states of America and has television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation offers the company regional in addition to worldwide fan base.
The market division of Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis is likewise highlydiverse based upon the gender, earnings and age of the customer. To increase the demographic section of its market NASCAR ought to revise its marketing methods to bring in more age groups and lower its costs to go into in the market segment with a low typical earnings.
The mental qualities of the majority of the fans are rather similar. NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to buy tickets and see the races as soon as in a week. 71% of them choose to acquire products with a NASCAR brand name. They are quite extrovert and are willing to join other fans while racing. They desire quality racing with low price at practical area. NASCAR has attempted to increase the quality of its racing by introducing phase racing, they likewise have 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 terms of seeing the race survive on the tv or by entering the occasions. Currently, the fans choice is towards seeing the race in your home on tv rather than going, as the consumer experience at NASCAR tracks is not beneficial as well as pricey. This choice makes the rates for attendance lower than the rates for tv viewers. NASCAR needs to alter the behaviour of its fan base by introducing qualitative services at its tracks.
One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market section has great prospective for NASCAR as the population was growing at a greater rate and it was anticipated to become thrice after forty years and the section 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. Producing fan base amongst kids can supply a prospective increase in the variety of fans for racing due to their connection. Kids invest the majority of their times in utilizing smartphones and playing video games. Car racing video games developed by Competition Policy In The European Union And The Power Of Microsoft Case Study Help can be a prospective source of acquiring attention of kids towards NASCAR track racing. NASCAR's digital functions related to kids are not capable of getting the attention. NASCAR needs more attention towards tailoring and enhancing its digital features to attract the kids target market.
This big expenditure makes the segment potential for NASCAR marketing strategy of increasing its fan base. The market segment considers NASCAR as an organization lacking in producing a multiculturalism environment. NASCAR needs to take numerous 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 choices concerning marketing. These 5 C's needs to be evaluated effectively for taking any marketing choice. These 5 C's stands for Climate, Company, Collaborators, Clients and Competitors.
It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE represents political, financial, social, technical, environmental and legal and is stated above.
Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis is a car racing company with having USP of high quality car racing with an international structure. Its sector is sports team and occasions.
Collaborations consists of distributors, providers and alliances of Competition Policy In The European Union And The Power Of Microsoft Case Study Solution. It is collaborated with different racing teams which are taking part in racing. It likewise teamed up with Turners Sport for digital rights. NASCAR utilized to make money check of around $15 million yearly from Turner Sports. There are number of cons behind this deal. For instance NASCAR needed to get approval from Turner Sport if it wish to produce its Facebook page, twitter account or perhaps mobile application. Turner Sport likewise had rights of every video which is shoot throughout race at track.
The consumer of Competition Policy In The European Union And The Power Of Microsoft 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 a typical age of 47, which passes their fandom to their children and develop generational commitment.
The direct competitors of NASCAR are Solution 1 and Moto GP. Teams typically represents sponsors in NASCAR and the medium of marketing is drivers. Therefore it can be stated that chauffeurs and race cars and trucks are competitors. If they got better opportunity in terms of prizes and television exposure, these chauffeurs can go against NASCAR.
1. Developing and Keeping Facebook Page.
One of the prospective target markets sections for NASCAR is Hispanics which is the growing population segment of USA however regrettably NASCAR had been unable to bring in the this targeted section. In order to bring in the young growing generation the NASCAR ought to market by using social networks like Facebook. It ought to establish a Facebook page including the details relating to the races and the locations of tracks to make the customer useful about the core operations of Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis. It ought to likewise update its Facebook page on everyday basis to provide information about its upcoming occasions. This would make the target audience segment more informative about the business and would result in attracting large fans base.
2. Establishing and Updating Accounts of Key Drivers.
NASCAR chauffeurs has a low star power as compare to gamers of other sports. Its ranks 7th in regards to star power (see Case Exhibition). The significant reason behind it is that, the racers primarily play in groups and are not able to construct an essential account and keep a close contact with fans. The poor contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is an essential factor for drawing in viewers towards tracks and towards tv. The star power for the drivers at NASCARA might be enhanced by developing and upgrading accounts of essential chauffeurs by NASCARA itself. This would eliminate the requirement of requiring chauffeurs to preserve their accounts and would result in increasing fans attention towards NASCARA chauffeurs.
3. Establishing New Games and improving current video games for kids.
Kids spent most of their time on playing video games and utilizing smartphones. Regrettably, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less drawn in towards the sport. In order to attract these kids, NASCARA must enhance its existing racing video games by introducing personalization in the cars and trucks i.e. changing colours, selection of speed, presenting group racing in the game, utilizing better graphics related to the racing tracks and presenting numerous levels in the game. All these modifications in the existing game would provide better experience to kids.
Together with it, NASCAR must also construct brand-new games associated with racing like kids racing with kids characters as motorists, animation racing with racing between numerous animation characters with a choice of choosing the favourite cartoon character for the kids. These techniques would allow the company to attract one of its possible target segments.
4. Presenting multiculturalism at events.
Competition Policy In The European Union And The Power Of Microsoft Case Study Analysis events are consisted of fans with extremely few multiculturalism, due to cost of arrival in occasions, making it unattractive for the customers viewing sport occasions as social occasions i.e. Generation Y clients. As the Generation Y consumers are a potential target audience for NASCAR, therefore the company should take certain steps to attract this prospective target audience. It needs to embrace strategies to draw in the consumers far from the tracks area with different culture. The method to do so could be providing special discounts on tickets or free tickets to audiences originating from a specific distance or from another state. It would increase multiculturalism of the fans and would make Generation Y consumers more satisfied.
5. Improving Customer Experience at Tracks.
Competition Policy In The European Union And The Power Of Microsoft Case Study Help needs to work on facilities and features at tracks because on the race day audiences got dissatisfied. Because in exact same industry other companies are providing much better services than NASCAR, viewers have lots of expectations from Competition Policy In The European Union And The Power Of Microsoft Case Study Help. IF NASCAR don't deal with this concern then its fans might moved to its competitors. According to fans there were not appropriate centers were offered as compare to other sports suppliers. So NASCAR should make certain that it offer appropriate facilities that consists of cleaned restrooms, comfy seating plan. They need to likewise offer WIFI services and availability of credit cards throughout that track. It should be also make sure that there are enough jumbo turns put at all required locations. There should be likewise food stalls that supply quality food to audiences. In this way audiences will be having enjoyable experience at the day of event. (See Appendix B).
Marketing budget made on the basis of the above techniques for the period of 5 years from 2011 to 2015, reveals the expense related data for the marketing techniques. (See Appendix B). It can be seen that technique 5 of enhancing client experience at tracks would need highest initial financial investment and cost and technique 4 of introducing multiculturalism will require least expensive preliminary financial investment with lowest further annually cost. The business should prioritize the resource allocation on these techniques on the basis of its offered resources and the prospective advantages which the strategy would provide.
NOTE: The values about expense are presumed on rational basis due the lack of facts and figures connected to cost in the case research study. Inflation rate of United States is presumed to be 10%.
On the basis of deep analysis of the internal and external elements of Competition Policy In The European Union And The Power Of Microsoft Case Study Help causing the decline of television viewership rate and participation rate at tracks, the above marketing strategies are suggested to NASCAR to increase its fan base in long term. These strategies would cope with internal factors like poor customer experience at tracks, insufficient social media marketing, incapable digital medias like games, absence of culturalisms at tracks and so on, as well as with external factors like shifting of fans towards other sports, demographical modifications in America and altering domesticity designs.