Power Of Strategic Integration Online Case Study Analysis

Home >> Business >> Power Of Strategic Integration

Power Of Strategic Integration Case Study Solution & Analysis


NASCAR (National Association for Stock Vehicle Auto Racing) is an organization performing series of Stock Cars and truck racing in United States and acting as an approving body for driving the rules for Stock Cars and truck Racing. 2) Stock Vehicle Racing by NASCAR is the second biggest viewer sport, with highest number of sponsors. 1) The other sources of earnings for Power Of Strategic Integration Case Study Help consists of; 10% of the total income from tv rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand to business.

NASCAR has a closed business culture with the non-interventionist approach. The structure of Cars and truck of Tomorrow by NASCAR, with an intention of security for the drivers, brought different stress amongst the stakeholders of the sport.
Executive Summary
The interaction audit, performed in 2010, revealed that in spite of the reality that the company extremely rely on the interactions between its stakeholders, there was no identifiable service interaction strategy. (

The audit pointed out various doing not have of NASCAR in terms of lack of internal combination, absence of fan management method and absence of social and digital media of marketing. The business has complex ecosystem with independent tracks, drivers and teams. This structure with closed corporate culture bring various difficulties in speeding up a change. Other partners in environment includes the media networks i.e. television and radio, and business online marketers.

Power Of Strategic Integration Case Study Help audiences was highly devoted to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate online marketers.

Problem Statement.

The company is currently dealing with the issue of decreasing rates of participation at racing tracks and rates of tv viewers. This can put a significant influence 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 strategies, but right after 2005 the business begins dealing with numerous problems including decline of its fan base. A number of external along with internal elements are accountable for the decrease. Internal factors include; inadequate financial 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 youngsters and produce generational commitment. Other difficulties for NASCAR includes the shift of its fans to other sports as they were improving their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi gain access to, etc.

SWOT Analysis.


In SWOT analysis, strengths defined as business's qualities which are various from its competitors. These are company's core proficiencies on which company performance or company success based upon. Power Of Strategic Integration Case Study Analysis core competencies includes it has rights of determining guidelines as sanctioning body. Guidelines and guidelines concerning expert stock car racing are determined by NASCAR like if any group with required abilities and resources can participate in races by following rules and regulations dictated by NASCAR. NASCAR has monopoly it this element. Its strengths also 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 used to transmit in more than 150 nations around the world with more than $56 million profits. The primary sources of their incomes come from television rights, sanctioning costs, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 national series i.e. Outdoor 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 since of most significant brand name loyalty of fans toward brands advertised by Power Of Strategic Integration Case Study Solution. (See Appendix A).

Weak points.

Weak points of NASCAR includes its close culture which is non collaborative. Power Of Strategic Integration Case Study Help develops Vehicle of Tomorrow without collaboration so result is that drivers did not like that principle. It was also found that NASCAR had no efficient strategy for organisation communication.
Porter's 5 Forces Analysis

Opportunities in SWOT analysis are external aspects which can be beneficial to business or the external aspects on which company is having competitive benefit. NASCAR typically used to count on conventional media sources like local paper for promotion of its sports. Generally these conventional media sources attempt to cover their house team and certain sort of occasions. NASCAR likewise familiarized from these traditional media outlets that sport was hard to cover. Media landscape likewise changed from conventional to digital landscape. Newspapers went out of business. NASCAR can work on its capabilities to get optimal possible take advantage of this brand-new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in digital and social media to get its advantages. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR utilized to earn money check of around $15 million yearly from Turner Sports. There are number of cons behind this deal. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application. Turner Sport also had rights of every single video which is shoot throughout race at track. If media sources like papers, magazines and cable channels wish to publish videos of races on their respective pages then they are required to pay licensing fees to Turner Sport. NASCAR can work on conditions and terms and attempt to work out with Turner Sports to get maximum advantages of it. Star power plays really important role in producing incomes from every sport. However it was kept in mind that Power Of Strategic Integration Case Study Help is lagging in this area i.e. star power. When sports fans were asked regarding popular stars and stars then NASCAR chauffeur was not discovered even in leading twenty reactions. So NASCAR can put efforts in this location too for revenue generation. They need to direct their chauffeurs that how they can become sport stars. Four strategic focuses which are created by research group can also be worked as opportunity for NESCAR. These four strategic focuses compares and analysis Power Of Strategic Integration Case Study Analysis techniques.


Economic down turn was experienced in late 2000 which can be threat for NASCAR because if there is economic down turn then people would be having less return on investment. Economic down turn likewise results in increase fuel costs which likewise impacted NASCAR. Now if NASCAR make significant investments in new sections which are based on new consumers then it may face unfavorable remarks from its core fan base.

Porter's 5 Forces Analysis

Porter's 5 forces is a design that is utilized to evaluate industry in which company is working. It helps in identifying what are strengths and weakness of any particular industry. It suggest that every market is various from one another. Because NASCAR's bottom line i.e. net earnings is greatly depends on this, it is crucial to comprehend market in which company is working. There are 5 forces that are utilized to recognize profitability, strength and beauty of Power Of Strategic Integration Case Study Solution organisation.

Competitive Rivalry

These chauffeurs can go versus NASCAR if they got better chance in terms of rewards and television direct exposure. If viewers enjoy other race cars and chauffeurs more than NASCAR then audiences can move to those other intriguing cars and trucks and chauffeurs. 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 industry and what is the expense associated with provider. Due to the fact that motorists with needed resources and abilities are limited, in this market there is supply monopoly.

Purchaser Power

In the case of NASCAR customers are its viewers. Audiences can switch to other rivals easily because viewers will having low switching cost.

Threat of Alternative

Replacements are referred as alternatives. The substitutes in this case can be other entertainment means like viewers can shift to other sports. There are large variety of alternatives are readily available in this scenario which suggests that danger of alternative is high.

Hazard of New Entry

In the case of NASCAR danger of brand-new entry is low. They need to construct cars and racing tracks and likewise requires to pay substantial amount to motorists for switching.

PESTEL Analysis


As NASCAR is working in various markets so it requires to deal with various policies. It is likewise noted that NASCAR has dealt with increased scrutiny relating to regulatory. Every government has various concern so NASCAR has to be prepared for it as top priority can be moved to other sector.


Financial elements includes taxation rate, exchange rate, financial efficiency of that specific company, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its rivals can be affected if there is government intervention in the marketing and sales sector. NASCAR can leverage capabilities of employees to produce brand-new chances and improve existing chances.


Each has different social worths and standards. It assists in comprehending relating to society and preference of clients.


Technology has impact on practically every organisation. It consists of development in service strategy. In this case of Power Of Strategic Integration Case Study Help it can be noted that companies are greatly investing for research study and advancement. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.

Vrio Analysis
Since every country has various legal terms and conditions, Legal plays an important role in every country. Power Of Strategic Integration Case Study Help requires to be ensure that they protect their legal rights in every county so any company does not hurt to its legal rights.


Ecological aspects are likewise crucial for every business. NASCAR needs to make sure that its cars and trucks are not creating pollution more than appropriate level.

7 P's of Marketing


The items of Power Of Strategic Integration Case Study Solution in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving guidelines for races and ad-space to corporate marketers throughout broadcast of NASCAR races. (Hanlon, 2018).


Prices strategy of NASCAR for its race occasions tickets is based upon the venue and significance of the racing occasions. In addition to race events tickets, NASCAR also charge various service fees to its stakeholders and makes revenue. It charged approving charges of $1-2 million per race on average in 2005.


Promotional technique of NASCAR is extremely 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 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 perform its races in the majority of the cities in United States to comprehend nationwide popularity.


Nestle people technique is consisted of providing better experience to its audiences, its fan base and to all of its stakeholders. Individuals are an important element of Power Of Strategic Integration Case Study Help A marketing method as its events are the source of home entertainment for crowd. Its individuals technique consists of efforts to provide better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under people strategy of NASCAR.


A number of service procedures are needed to perform racing events in an efficient way. These processes include; correct schedule of time, plan for spectators, offering tickets, arrangement of area for sponsors, managing logistics etc. These all processes contribute I building NASCAR image, improving spectators experience and increasing fan base.

Physical Evidence.

Most important physical evidences for the NASCAR consists of the existence of its racing tracks, stock cars and trucks and racing events. Together with it, its retailing brand names including t-shirts, caps, goodies and so on, also function as a physical evidence for NASCAR.

Product Life Process Evaluation.

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


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

In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he transformed NASCAR from a regional Sport popular organization into one with worldwide fan base. He initiated a new age of lucrative sponsorships and television agreements for NASCAR.


The maturity period for NASCAR started with the efforts of William France Jr., with the company having large range of earnings sources. The company has about 500 sponsors with transmitting its events in about 150 countries. The business has large number of tracks in most of the cities of United States.


The significant causes of decrease include the financial crisis of 2008, which increased the cost of getting here at tracks for viewers due to increasing fuel prices, and the moving of its fan base towards other sports.

Market Division.

The market segmentation of Power Of Strategic Integration Case Study Help can be divided into four sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical division of Power Of Strategic Integration 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 events in different 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 large geographical division offers the business regional in addition to global fan base.


The demographic segmentation of Power Of Strategic Integration Case Study Solution is likewise highlydiverse based upon the gender, earnings and age of the customer. To increase the group section of its market NASCAR should modify its marketing strategies to bring in more age groups and lower its rates to enter in the market sector with a low typical income.


NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to acquire tickets and see the races as soon as in a week. NASCAR has tried to increase the quality of its racing by introducing phase racing, they likewise have actually tried to lower prices and make the event more convenient by introducing live racing.


Behavioural division of Power Of Strategic Integration Case Study Analysis is based upon the behaviour of fans in terms of enjoying the race reside on the television or by going in the events. Currently, the fans choice is towards enjoying the race in your home on television instead of going, as the consumer experience at NASCAR tracks is not favourable in addition to costly. This preference makes the rates for participation lower than the rates for tv viewers. NASCAR needs to alter the behaviour of its fan base by presenting qualitative services at its tracks.

Target audience.


Among the potential target market of Power Of Strategic Integration Case Study Help was Hispanics; the young and growing population of United States. The marketplace segment has excellent prospective 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 sector reveals affinity with car culture, but require a more focused marketing towards inviting the section towards racing.


Kids are likewise among the potential target audience segment for NASCAR, as they are more linked socially than other groups. Producing fan base among kids can supply a prospective boost in the number of fans for racing due to their connection. Kids spend the majority of their times in playing and utilizing smartphones video games. Car racing video games established by Power Of Strategic Integration Case Study Solution can be a prospective source of gaining attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital functions connected to kids are not efficient in gaining the attention. NASCAR requires more attention towards customizing and enhancing its digital features to attract the kids target audience.

Generation Y.
Generation Y target market consists of those who invested five times more resources on discretionary costs i.e. acquiring tickets for racing events, than others. This huge expenditure makes the sector capacity for NASCAR marketing technique of increasing its fan base. The market section is likewise easy to method as 81% of the Y Generation consumer utilizes Facebook every day and the usage is twice of utilizing television and radio. The market segment views sports as a get-together, rather than adherence to sport. The marketplace segment considers NASCAR as a company lacking in creating a multiculturalism environment. Power Of Strategic Integration Case Study Solution ought to take different actions 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 concerning marketing. These 5 C's requirements to be evaluated appropriately for taking any marketing decision. These 5 C's stands for Climate, Business, Collaborators, Competitors and customers.


It requires to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, legal and ecological and is mentioned above.


NASCAR is a car racing company with having USP of high quality car racing with a global structure. Its sector is sports team and occasions. Its target audience is males in the age of 15-60 years. Company has closed corporate culture and having non-interventionist technique.


Collaborations consists of distributors, providers and alliances of Power Of Strategic Integration Case Study Analysis. It is worked together with various racing groups which are participating in racing. It likewise worked together with Turners Sport for digital rights. NASCAR used to earn money check of around $15 million every year from Turner Sports. There are variety of cons behind this deal. For example NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or perhaps mobile application. Turner Sport also had rights of every single video which is shoot during race at track.


The customer of Power Of Strategic Integration Case Study Solution are its viewers. 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 produce generational loyalty.


The direct rivals of NASCAR are Solution 1 and Moto GP. Teams generally represents sponsors in NASCAR and the medium of advertising is motorists. It can be said that chauffeurs and race cars and trucks are competitors. If they got much better opportunity in terms of rewards and tv direct exposure, these chauffeurs can go versus NASCAR.

Marketing Strategies.

1. Establishing and Keeping Facebook Page.
Among the possible target audience sectors for NASCAR is Hispanics which is the growing population sector of USA however unfortunately NASCAR had actually been unable to draw in the this targeted segment. In order to attract the young growing generation the NASCAR need to market by utilizing social media like Facebook. It ought to develop a Facebook page including the information relating to the races and the places of tracks to make the consumer helpful about the core operations of Power Of Strategic Integration Case Study Analysis. It needs to also update its Facebook page on everyday basis to supply info about its approaching occasions. This would make the target audience sector more useful about business and would result in bring in big fans base.
2. Developing and Updating Accounts of Secret Drivers.
Power Of Strategic Integration Case Study Analysis chauffeurs has a low star power as compare to players of other sports. The bad 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 attracting viewers towards tracks and towards tv.
3. Establishing New Games and enhancing current video games for kids.
Kids spent the majority of their time on playing video games and using smart devices. But sadly, kids playing NASCARA have a worst experience of playing its games. As an outcome, they are less attracted towards the sport. In order to draw in these kids, NASCARA should improve its current racing video games by introducing customization in the cars i.e. altering colours, selection of speed, presenting group racing in the game, utilizing better graphics connected to the racing tracks and introducing different levels in the game. All these adjustments in the existing game would offer better experience to kids.
In addition to it, NASCAR ought to likewise build brand-new video games related to racing like kids racing with kids characters as drivers, animation racing with racing in between various cartoon characters with a choice of picking the favourite animation character for the kids. These strategies would allow the company to bring in one of its potential target sections.
4. Introducing multiculturalism at events.
Power Of Strategic Integration Case Study Solution occasions are consisted of fans with very few cultural diversity, due to expense of arrival in events, making it unattractive for the consumers viewing sport events as affairs i.e. Generation Y consumers. As the Generation Y clients are a possible target market for NASCAR, therefore the business needs to take particular measures to attract this possible target market. It needs to embrace methods to draw in the consumers far from the tracks location with various culture. The technique to do so could be providing unique discounts on tickets or complimentary tickets to viewers coming from a specific distance or from another state. It would increase cultural diversity of the fans and would make Generation Y customers more satisfied.
5. Improving Client Experience at Tracks.
Due to the fact that on the race day audiences got disappointed, NASCAR ought to work on infrastructure and facilities at tracks. Audiences have numerous expectations from NASCAR due to the fact that in same industry other business are offering much better services than NASCAR. Then its fans might moved to its competitors, if NASCAR don't work on this concern. According to fans there were not adequate centers were available as compare to other sports service providers. NASCAR must make sure that it offer appropriate facilities that consists of cleaned up restrooms, comfy seating plan. They must likewise provide WIFI services and accessibility of credit cards throughout that track. It needs to be likewise make certain that there suffice jumbo turns positioned at all required locations. There must be likewise food stalls that offer quality food to viewers. In this method audiences will be having enjoyable experience at the day of occasion. (See Appendix B).

Marketing Spending plan

Marketing budget plan made on the basis of the above strategies for the period of 5 years from 2011 to 2015, reveals the cost related information for the marketing strategies. (See Appendix B). It can be seen that technique 5 of enhancing customer experience at tracks would need greatest preliminary investment and cost and strategy 4 of introducing multiculturalism will need most affordable initial investment with most affordable further per year cost. The company needs to prioritize the resource allotment on these techniques on the basis of its offered resources and the possible advantages which the strategy would offer.
NOTE: The worths about cost are assumed on rational basis due the absence of figures and facts related to cost in the case study. Inflation rate of United States is assumed to be 10%.

On the basis of deep analysis of the external and internal elements of Power Of Strategic Integration Case Study Solution causing the decline of tv viewership rate and attendance rate at tracks, the above marketing strategies are recommended to NASCAR to increase its fan base in long run. These techniques would deal with internal aspects like bad client experience at tracks, inadequate social media marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., as well as with external elements like moving of fans towards other sports, demographical changes in America and altering domesticity styles.