Power Of Strategic Integration Case Study Solution & Analysis
Power Of Strategic Integration Case Study Analysis (National Association for Stock Cars And Truck Auto Racing) is a company conducting series of Stock Vehicle racing in United States and acting as a sanctioning body for driving the rules for Stock Cars and truck Racing. The company was founded in 1947, by "Huge Costs" France. NASCAR set up Stock Vehicle Racing events in United States with the existence of about 130000 audiences usually in 2005. It likewise broadcast its occasions in about 150 countries. Stock Car Racing by NASCAR is the second largest viewer sport, with greatest variety of sponsors. It has about 500 sponsors contributing billions of dollars in its profits. The other sources of revenue for Power Of Strategic Integration Case Study Help includes; 10% of the overall profits from tv rights, approving costs i.e. $1-2 million per race, and licencing NASCAR brand to business.
NASCAR has a closed business culture with the non-interventionist technique. This non collective technique brings stress in the sport. The structure of Car of Tomorrow by Power Of Strategic Integration Case Study Help, with an objective of safety for the motorists, brought numerous tensions amongst the stakeholders of the sport.
The interaction audit, conducted in 2010, revealed that despite the fact that the company highly rely on the interactions between its stakeholders, there was no recognizable company interaction strategy. (
The audit pointed out various lacking of NASCAR in terms of absence of internal combination, absence of fan management technique and absence of digital and social media of marketing.
Power Of Strategic Integration Case Study Analysis audiences was highly faithful to the sport and the brands associated with the NASCAR, making it appealing for sponsors and business marketers.
The business is presently dealing with the problem of declining rates of participation at racing tracks and rates of tv viewers. This can put a significant effect on its earnings from sponsors, media rights, and from other sources of profits.
Although the company was rather effective till 2005 with its conventional marketing techniques, but right after 2005 the company begins dealing with numerous problems consisting of decrease of its fan base. Numerous external as well as internal factors are responsible for the decrease. Internal elements include; inadequate investment in social networks and other digital medias of.
Fan base of NASCAR made up of married males with a typical age of 47, which passes their fandom to their youngsters and develop generational loyalty. Other challenges 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, etc.
In SWOT analysis, strengths specified as company's qualities which are different from its rivals. These are company's core competencies on which business performance or company success based on. Power Of Strategic Integration Case Study Help core competencies includes it has rights of determining rules as approving body. Rules and guidelines concerning professional stock cars and truck racing are dictated by NASCAR like if any team with needed skills and resources can participate in races by following guidelines and policies dictated by NASCAR. So NASCAR has monopoly it this aspect. Its strengths also includes that it has title of second biggest spectator sport in the United States with having more fortune 500 sponsors based in US. Its races were utilized to broadcast in more than 150 countries around the world with more than $56 million incomes. The main sources of their revenues originate from television rights, approving costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 nationwide series i.e. Outdoor camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also large resource of fans and corporate sponsors. All the occasions of NASCAR are sponsored by corporates due to the fact that of biggest brand commitment of fans towards brand names marketed by Power Of Strategic Integration Case Study Help. (See Appendix A).
Weak points of NASCAR includes its close culture which is non collective. Power Of Strategic Integration Case Study Analysis develops Car of Tomorrow without cooperation so result is that chauffeurs did not like that concept. It was likewise discovered that NASCAR had no reliable technique for organisation interaction.
NASCAR typically used to rely on traditional media sources like regional newspaper for publicity of its sports. NASCAR also came to understand from these standard media outlets that sport was difficult to cover. When sports fans were asked regarding popular celebs and stars then NASCAR driver was not discovered even in top twenty reactions.
Dangers in SWOT analysis are defined as external aspects that can hazard to business's success. Since if there is financial down turn then individuals 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 conscious in spending their money. Economic down turn likewise leads to boost fuel prices which also affected NASCAR. Since fans of NASCAR utilized to attend its occasion from cross countries. NESCAR had a guideline of 65/25/10 for income circulation. 65 percent incomes from media rights would be dispersed to race tracks, 25 percent income would be distributed to competing group and remaining 10 percent would be maintained by NESCAR which is sanctioning body. Competing team wanted to increase their portion of income from 25 percent due to the fact that of boost in running expense of a race team and also there is decrease in the number of full-season sponsorship. Due to the fact that they are making enormous investments to improve experience of fans, nescar also deals with risks from other sponsors. Which consists of upgrading existing opportunities, constructing new opportunities, offering Wi-Fi center and also providing other interactive mediums to interact sports on smart devices. 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 difficulty is that the family system in America was changing resulting in decrease of influence of married male fan base over their youngsters. Along with it perceptions about car was likewise changing with viewing cars and truck a lorry to reach at point B from point A, rather than as a fun job. If NASCAR make considerable financial investments in new sections which are based on brand-new consumers then it may face negative comments from its core fan base, now.
Porter's 5 Forces Analysis
It is important to comprehend market in which business is working because NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are utilized to identify success, intensity and beauty of NASCAR organisation.
This force indicates capability of rivals. Groups normally represents sponsors in NASCAR and the medium of marketing is motorists. For that reason it can be said that chauffeurs and race vehicles are rivals. These chauffeurs can break NASCAR if they improved opportunity in regards to prizes and television exposure. If audiences enjoy other race cars and trucks and drivers more than NASCAR then viewers can shift to those other interesting cars and chauffeurs. NASCAR might be having hazard from its 2 direct competitors that is Formula 1 and Moto GP. They require to create competitive advantages for motorists so they don't shift to other rivals.
If business shifts from one supplier to another, the supplier power indicates the number of suppliers are available in market and what is the expense associated with supplier. Because motorists with needed abilities and resources are limited, in this market there is supply monopoly.
In the case of NASCAR consumers are its viewers. Audiences can change to other competitors quickly because viewers will having low changing expense.
Hazard of Alternative
Substitutes are referred as options. The substitutes in this case can be other home entertainment implies like audiences can shift to other sports. So there are large range of alternatives are offered in this scenario which suggests that threat of substitute is high.
Threat of New Entry
In the case of NASCAR danger of new entry is low. They require to develop cars and racing tracks and likewise requires to pay significant amount to drivers for changing.
As NASCAR is working in different markets so it needs to deal with various guidelines. It is also noted that NASCAR has faced increased analysis concerning regulative. Every federal government has different top priority so NASCAR has actually to be prepared for it as concern can be shifted to other sector.
Financial aspects consists of taxation rate, currency exchange rate, economic efficiency of that particular business, conditions of labour market, inflation rate etc. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can utilize abilities of employees to develop brand-new opportunities and enhance existing opportunities.
Every society is different from each other. Each has different social worths and standards. It helps in comprehending regarding society and preference of clients. Social aspects consists of traditions, culture, attitudes towards particular services and products, demographics, standards, interests etc. It can be concluded that marketing through other means instead of conventional (i.e. newspaper) can be preferred in this society.
In this case of NASCAR it can be noted that companies are greatly investing for research and advancement. NASCAR must 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. Power Of Strategic Integration Case Study Solution needs to be make sure that they protect their legal rights in every county so any business does not hurt to its legal rights.
Environmental factors are also essential for each organisation. Because usually governments do not enable those organisation which can damage to environment. These environmental factors includes laws relating to contamination, climate change, safe garbage disposal, policies concerning insurance etc. NASCAR needs to make sure that its automobiles are not producing contamination more than acceptable level.
7 P's of Marketing
The items of Power Of Strategic Integration Case Study Help in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving rules for races and ad-space to business online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates strategy of NASCAR for its race events tickets is based upon the location and significance of the racing occasions. Together with race events tickets, NASCAR also charge numerous service charge to its stakeholders and makes earnings. For instance it charged sanctioning charges of $1-2 million per race typically in 2005.
Advertising method 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, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in the majority of the cities in United States to understand across the country popularity.
Nestle individuals technique is consisted of offering much better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an important element of Power Of Strategic Integration Case Study Analysis A marketing technique as its events are the source of home entertainment for crowd. Its people method consists of efforts to provide better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under individuals technique of NASCAR.
Several service procedures are required to carry out racing occasions in an effective way. These processes consist of; appropriate schedule of time, arrangement for spectators, selling tickets, arrangement of area for sponsors, handling logistics etc. These all procedures contribute I developing NASCAR image, enhancing viewers experience and increasing fan base.
Crucial physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing occasions. In addition to it, its merchandising brand names consisting of tee shirts, caps, goodies and so on, also serve as a physical evidence for NASCAR.
Item Life Cycle Assessment.
The racing events by NASCAR was introduced on June 19, 1949. At the first phase competition for NASCAR was low, as the rivals drove the cars and trucks comparable to the cars and trucks driven by ordinary people.
After performing its first race effectively the company moved towards building its own tracks. The very first Power Of Strategic Integration Case Study Solution based track, namely 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 development of racing tracks the company moved towards relaying its races on tv in 1979. The very first occasion broadcasted on television was flag-to-flag coverage of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he changed NASCAR from a local Sport popular organization into one with international fan base. He started a new period of profitable sponsorships and tv contracts for NASCAR.
The maturity duration for NASCAR began with the efforts of William France Jr., with the business having wide range of income sources. The business has about 500 sponsors with transmitting its occasions in about 150 countries. The company 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 typical participation rate per race decreased by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The significant reasons for decrease consist of the monetary crisis of 2008, which increased the cost of coming to tracks for audiences due to increasing fuel rates, and the moving of its fan base towards other sports.
The marketplace division of Power Of Strategic Integration Case Study Analysis can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Power Of Strategic Integration Case Solution is based upon the geographical presence of its tracks in different states and cities in United States, and the tv broadcasting of its events in different countries. The business has 23 tracks in about 20 states of America and has tv broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical division provides the business regional along with worldwide fan base.
The demographic division of Power Of Strategic Integration Case Study Help is also highlydiverse based upon the gender, earnings and age of the customer. To increase the group section of its market NASCAR must revise its marketing techniques to bring in more age groups and lower its costs to enter in the market sector with a low typical earnings.
NASCAR has a fan base with a commitment. NASCAR fans perceive it compulsive to purchase tickets and see the races once in a week. NASCAR has tried to increase the quality of its racing by presenting phase racing, they also have actually tried to lower costs and make the event 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 events. Currently, the fans choice is towards enjoying the race at home on tv rather than going, as the customer experience at NASCAR tracks is not beneficial as well as pricey.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market section has terrific prospective for NASCAR as the population was growing at a higher rate and it was anticipated to end up being 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 market segment for NASCAR, as they are more connected socially than other groups. Automobile racing games developed by Power Of Strategic Integration Case Study Analysis can be a prospective source of getting attention of kids towards NASCAR track racing. NASCAR needs more attention towards personalizing and improving its digital features to draw in the kids target market.
This big expense makes the section capacity for NASCAR marketing technique of increasing its fan base. The market segment thinks about NASCAR as an organization lacking in developing a multiculturalism atmosphere. NASCAR must take different steps to improve the experience of Generation Y consumers in its events.
5 C's of Marketing
5 C's of marketing helps in taking choices concerning marketing. These 5 C's requirements to be analysed effectively for taking any marketing choice. These 5 C's mean Climate, Company, Collaborators, Competitors and clients.
It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE means political, financial, social, technical, ecological and legal 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 closed business culture and having non-interventionist method.
Collaborations includes distributors, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application.
The consumer of Power Of Strategic Integration Case Study Analysis are its audiences. They target consumers 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 youngsters and produce generational loyalty.
Teams typically represents sponsors in NASCAR and the medium of advertising is chauffeurs. These motorists can go against NASCAR if they got much better chance in terms of rewards and television direct exposure.
1. Establishing and Keeping Facebook Page.
One of the potential target markets sections for NASCAR is Hispanics which is the growing population segment of USA however regrettably NASCAR had actually been not able to draw in the this targeted section. 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 consisting of the details concerning the races and the places of tracks to make the consumer informative about the core operations of Power Of Strategic Integration Case Study Analysis. It ought to also update its Facebook page on day-to-day basis to offer info about its upcoming occasions. This would make the target audience sector more informative about the business and would result in drawing in large fans base.
2. Establishing and Upgrading Accounts of Key Drivers.
NASCAR drivers has a low star power as compare to gamers of other sports. Its ranks 7th in terms of star power (see Case Exhibit). The significant factor behind it is that, the racers mainly play in groups and are not able to develop a crucial account and maintain a close contact with fans. The bad contacts with fans lead to less attraction of viewers towards the racers and a low star power. Star power is a crucial element for bring in viewers towards tracks and towards television. The star power for the chauffeurs at NASCARA could be improved by developing and upgrading accounts of key chauffeurs by NASCARA itself. This would eliminate the requirement of requiring drivers to maintain their accounts and would result in increasing fans attention towards NASCARA chauffeurs.
3. Establishing New Games and enhancing present games for kids.
In order to attract these kids, NASCARA ought to enhance its existing racing video games by introducing customization in the cars i.e. changing colours, selection of speed, presenting group racing in the game, utilizing better graphics related to the racing tracks and presenting different levels in the game. All these modifications in the present game would supply better experience to kids.
Along with it, NASCAR should also build brand-new games related to racing like kids racing with kids characters as drivers, animation racing with racing between numerous cartoon characters with a choice of selecting the preferred animation character for the kids. These techniques would make it possible for the company to draw in among its prospective target segments.
4. Introducing multiculturalism at events.
NASCAR occasions are comprised of fans with very couple of cultural variety, due to expense of arrival in events, making it unattractive for the clients perceiving sport occasions as social celebrations i.e. Generation Y consumers. As the Generation Y clients are a prospective target market for NASCAR, for that reason the company must take particular procedures to attract this possible target market.
5. Improving Customer Experience at Tracks.
NASCAR needs to work on infrastructure and facilities at tracks due to the fact that on the race day viewers got dissatisfied. Viewers have numerous expectations from Power Of Strategic Integration Case Study Analysis since in same industry other companies are providing much better services than NASCAR. IF NASCAR do not work on this concern then its fans may moved to its competitors.
Marketing budget plan made on the basis of the above methods for the period of 5 years from 2011 to 2015, reveals the expense related data for the marketing strategies. It can be seen that method 5 of improving consumer experience at tracks would require greatest preliminary financial investment and expense and strategy 4 of presenting multiculturalism will need least expensive initial investment with lowest even more per year expense.
NOTE: The worths about expense are presumed on reasonable basis due the absence of figures and realities related to cost in the case research study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the internal and external elements of Power Of Strategic Integration Case Study Solution 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 run. These methods would deal with internal factors like poor consumer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, in addition to with external elements like moving of fans towards other sports, demographical changes in America and changing family life designs.