Power Of Strategic Integration Case Study Solution and Analysis
NASCAR (National Association for Stock Vehicle Automobile Racing) is an organization performing series of Stock Automobile racing in United States and acting as a sanctioning body for driving the rules for Stock Vehicle Racing. 2) Stock Cars And Truck Racing by NASCAR is the 2nd biggest spectator sport, with greatest number of sponsors. 1) The other sources of income for Power Of Strategic Integration Case Study Analysis includes; 10% of the total revenue from tv rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand name to business.
NASCAR has a closed business culture with the non-interventionist approach. However this non collaborative method brings tensions in the sport. The structure of Car of Tomorrow by Power Of Strategic Integration Case Study Solution, with an objective of safety for the drivers, brought various tensions amongst the stakeholders of the sport.
The interaction audit, performed in 2010, exposed that in spite of the reality that the business highly rely on the interactions between its stakeholders, there was no recognizable business communication strategy. (
The audit mentioned various doing not have of NASCAR in terms of lack of internal integration, absence of fan management method and absence of social and digital media of marketing. The business has complex community with independent tracks, chauffeurs and teams. This structure with closed corporate culture bring various challenges in speeding up a change. Other partners in ecosystem consists of the media networks i.e. tv and radio, and corporate online marketers.
Power Of Strategic Integration Case Study Solution audiences was extremely faithful to the sport and the brands connected with the NASCAR, making it appealing for sponsors and business online marketers.
The business is presently facing the problem of declining rates of attendance at racing tracks and rates of tv viewers. This can put a considerable impact on its revenues from sponsors, media rights, and from other sources of profits.
The business was rather successful till 2005 with its conventional marketing strategies, however soon after 2005 the company starts dealing with various issues consisting of decrease of its fan base. A number of external in addition to internal aspects are responsible for the decline. Internal factors include; insufficient financial investment in social media and other digital medias of.
Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and create generational loyalty. The household system in America was changing resulting in decrease of impact of married male fan base over their youngsters. In addition to it perceptions about automobile was likewise changing with perceiving vehicle a vehicle to reach at point B from point A, instead of as an enjoyable task. Other obstacles for Power Of Strategic Integration Case Study Analysis includes the shift of its fans to other sports as they were enhancing their fan's experience permitting access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, etc. These all obstacles were tending the company to modify its marketing techniques.
In SWOT analysis, strengths defined as company's qualities which are various from its competitors. These are company's core competencies on which business efficiency or business success based upon. Power Of Strategic Integration Case Study Analysis core competencies includes it has rights of determining guidelines as sanctioning body. Rules and policies relating to expert stock cars and truck racing are determined by NASCAR like if any team with required skills and resources can participate in races by following guidelines and guidelines dictated by NASCAR. So NASCAR has monopoly it this aspect. Its strengths likewise consists of that it has title of second biggest viewer sport in the United States with having more fortune 500 sponsors based in United States. Its races were used to broadcast in more than 150 nations worldwide with more than $56 million revenues. The main sources of their earnings come 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 due to the fact that of biggest brand commitment of fans toward brands marketed by Power Of Strategic Integration Case Study Help. (See Appendix A).
Weak points of NASCAR includes its close culture which is non collaborative. Power Of Strategic Integration Case Study Help establishes Car of Tomorrow without cooperation so result is that chauffeurs did not like that principle. It was also found that NASCAR had no efficient technique for company interaction.
Opportunities in SWOT analysis are external aspects which can be favourable to company or the external aspects on which business is having competitive benefit. NASCAR generally used to rely on conventional media sources like regional newspaper for promotion of its sports. Usually these standard media sources attempt to cover their house team and certain type of occasions. NASCAR also familiarized from these standard media outlets that sport was hard to cover. Media landscape also changed from traditional to digital landscape. Newspapers went out of business. NASCAR can work on its capabilities to get optimal possible gain from this brand-new digital landscape. NASCAR have underinvestment in digital resources. It can capitalize in social and digital media to get its benefits. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR utilized to get pay check of around $15 million each year from Turner Sports. There are number of cons behind this offer. NASCAR had to get approval from Turner Sport if it desire to create its Facebook page, twitter account or even mobile application. Turner Sport also had rights of each and every single video which is shoot throughout race at track. Then they are needed to pay licensing charges to Turner Sport, if media sources like papers, publications and cable television channels desire to post videos of races on their respective pages. So NASCAR can work on conditions and terms and try to negotiate with Turner Sports to get optimal advantages of it. Star power plays really essential function in producing earnings from every sport. However it was kept in mind that Power Of Strategic Integration Case Study Analysis is lagging in this location i.e. star power. For example when sports fans were asked regarding popular celebrities and stars then NASCAR motorist was not found even in top twenty responses. So NASCAR can put efforts in this area too for revenue generation. They need to direct their chauffeurs that how they can become sport stars. Four strategic focuses which are produced 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 strategies.
Hazards in SWOT analysis are defined as external elements that can danger 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 danger for NASCAR. Earning of individuals would be effected and they would be more conscious in spending their loan. Economic down turn also results in increase fuel costs which likewise affected NASCAR. Since fans of NASCAR utilized to attend its event from long distances. NESCAR had a guideline of 65/25/10 for revenue distribution. 65 percent earnings from media rights would be distributed to race tracks, 25 percent earnings would be dispersed to competing group and staying 10 percent would be retained by NESCAR which is sanctioning body. Competing team wanted to increase their portion of revenue from 25 percent due to the fact that of increase in running expense of a race team and also there is decrease in the variety of full-season sponsorship. NESCAR likewise deals with dangers from other sponsors because they are making enormous investments to improve experience of fans. For instance which includes updating existing opportunities, developing new avenues, supplying Wi-Fi facility and likewise providing other interactive mediums to communicate sports on mobile phones. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and develop generational commitment. The difficulty is that the household system in America was altering resulting in decrease of influence of married male fan base over their children. In addition to it understandings about car was also altering with viewing vehicle an automobile to reach at point B from point A, instead of as an enjoyable task. If NASCAR make significant financial investments in new sectors which are based on new customers then it may face unfavorable remarks from its core fan base, now.
Porter's Five Forces Analysis
It is important to understand industry in which company is working because NASCAR's bottom line i.e. net earnings is greatly depends on this. There are 5 forces that are utilized to determine success, strength and attractiveness of NASCAR service.
These drivers can go versus NASCAR if they got better chance in terms of rewards and tv exposure. If audiences delight in other race automobiles and chauffeurs more than NASCAR then audiences can shift to those other intriguing vehicles and drivers. NASCAR might be having hazard from its two direct competitors that is Formula 1 and Moto GP.
If company shifts from one supplier to another, the provider power indicates the number of providers are readily available in market and what is the expense associated with supplier. Due to the fact that chauffeurs with needed resources and skills are limited, in this market there is supply monopoly.
In the case of NASCAR consumers are its audiences. Audiences can change to other competitors quickly because viewers will having low changing cost.
Hazard of Alternative
Replacements are referred as alternatives. The alternatives in this case can be other entertainment suggests like viewers can move to other sports. There are broad variety of substitutes are available in this scenario which recommends that hazard of replacement is high.
Threat of New Entry
It is specified as how it is easy for any company to enter in that specific market. In the case of Power Of Strategic Integration Case Study Help danger of new entry is low. If any company requires to enter in this business than they have to make heavy financial investments, because. They need to construct vehicles and racing tracks and likewise needs to pay significant amount to motorists for switching.
It can not be concluded from case study that there would be change in resource allowances. NASCAR had got gain from lower tax policies which results in increasing in earnings. They made heavy financial investments in the research study and development. As NASCAR is operating in various markets so it needs to face different policies. It is likewise kept in mind that Power Of Strategic Integration Case Study Solution has actually faced increased examination relating to regulative. Every federal government has various top priority so NASCAR has to be gotten ready for it as concern can be moved to other sector.
Financial aspects includes taxation rate, exchange rate, financial efficiency of that particular business, conditions of labour market, inflation rate and so on. If there is federal government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be impacted. NASCAR can leverage capabilities of employees to produce brand-new chances and enhance existing opportunities.
Every society is different from each other. Each has different social worths and norms. It helps in comprehending concerning society and choice of consumers. Social elements consists of traditions, culture, mindsets towards particular services and products, demographics, norms, interests etc. It can be concluded that marketing through other methods rather than standard (i.e. paper) can be preferred in this society.
In this case of NASCAR it can be noted that business are heavily investing for research study and development. NASCAR ought to also work on its media rights policy with Turner Broadcasting System.
Due to the fact that every country has various legal terms and conditions, Legal plays a crucial role in every country. Power Of Strategic Integration Case Study Analysis requires to be make certain that they safeguard their legal rights in every county so any business does not damage to its legal rights.
Environmental factors are also essential for every company. NASCAR requires to make sure that its cars and trucks are not creating pollution more than appropriate level.
7 P's of Marketing
The products of Power Of Strategic Integration Case Study Solution in its product portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, approving guidelines for races and ad-space to corporate online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Pricing method of NASCAR for its race occasions tickets is based upon the venue and significance of the racing events. Together with race events tickets, NASCAR also charge different service fees to its stakeholders and makes income. For example it charged approving costs of $1-2 million per race typically in 2005.
Promotional method 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 various cities in United States. The most essential tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Automobile Club Speedway in California and Darlington Raceway in South Carolina. It tries to perform its races in most of the cities in United States to grasp nationwide appeal.
Nestle people technique is comprised of supplying better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential element of Power Of Strategic Integration Case Study Analysis A marketing technique as its occasions are the source of entertainment for crowd. Its individuals technique consists of efforts to provide better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under people strategy of NASCAR.
Numerous business processes are needed to carry out racing occasions in an effective method. These procedures consist of; appropriate schedule of time, arrangement for viewers, selling tickets, arrangement of area for sponsors, handling logistics and so on. These all processes contribute I constructing NASCAR image, enhancing spectators experience and increasing fan base.
Essential physical evidences for the NASCAR includes the existence of its racing tracks, stock cars and racing occasions. Along with it, its retailing brand names consisting of t-shirts, caps, goodies and so on, likewise function as a physical evidence for NASCAR.
Product Life Process Assessment.
The racing occasions by Power Of Strategic Integration Case Study Help was presented on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the first phase competitors for NASCAR was low, as the rivals drove the cars and trucks comparable to the automobiles driven by normal people.
After conducting its very first race successfully the company moved towards constructing its own tracks. The first Power Of Strategic Integration Case Study Solution based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by establishment of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the development of racing tracks the business moved towards transmitting its races on television in 1979. The very first event transmitted on tv was flag-to-flag protection 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 started a brand-new age of rewarding sponsorships and television agreements for NASCAR.
The maturity duration for NASCAR started with the efforts of William France Jr., with the company having vast array of earnings sources. The business has about 500 sponsors with transmitting its events in about 150 countries. The company has a great deal of tracks in most of the cities of United States.
The decline in the business's offerings began after 2005 with average participation rate per race decreased by 22% from 2005 to 2010 and television viewership rate decreased by 30% from 2005 to 2010. The significant causes of decrease include the financial crisis of 2008, which increased the cost of getting to tracks for audiences due to increasing fuel rates, and the moving of its fan base towards other sports.
The market division of Power Of Strategic Integration Case Study Help can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Power Of Strategic Integration Case Help is based upon the geographical existence of its tracks in different states and cities in United States, and the tv broadcasting of its occasions in different countries. The business has 23 tracks in about 20 states of America and has television broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical division offers the company regional as well as global fan base.
The market segmentation of NASCAR is also highlydiverse based upon the gender, earnings and age of the customer. Its present fan base is majorly comprised of male married fans with an average age of 47 years and an earnings around $30-50 thousands. Presently NASCAR is attempting to increase its target market to the young growing population and kinds. To increase the group segment of its market NASCAR ought to modify its marketing techniques to attract more age groups and lower its prices to go into in the marketplace segment with a low average earnings.( htt1).
The mental attributes of most of the fans are rather comparable. NASCAR has a fan base with a loyalty. NASCAR fans perceive it compulsive to purchase tickets and see the races when in a week. 71% of them prefer to acquire items with a NASCAR trademark name. They are quite extrovert and are willing to mingle with other fans while racing. They desire quality racing with low rate at convenient location. NASCAR has attempted to increase the quality of its racing by presenting stage racing, they also have attempted to lower rates and make the occasion more practical by introducing live racing.
Behavioural division of NASCAR is based upon the behaviour of fans in terms of watching the race live on the television or by going in the occasions. Presently, the fans choice is towards watching the race at home on television rather than going, as the customer experience at NASCAR tracks is not beneficial as well as costly.
One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market section has terrific possible for NASCAR as the population was growing at a higher rate and it was expected to become thrice after forty years and the sector has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids are likewise one of the prospective target market segment for NASCAR, as they are more linked socially than other groups. Vehicle racing games established by Power Of Strategic Integration Case Study Analysis can be a potential source of acquiring attention of kids towards NASCAR track racing. NASCAR requires more attention towards tailoring and improving its digital features to attract the kids target market.
This big expense makes the segment capacity for NASCAR marketing technique of increasing its fan base. The market sector thinks about NASCAR as an organization lacking in creating a multiculturalism atmosphere. NASCAR needs to take different steps to enhance the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking choices regarding marketing.
It needs to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE represents political, financial, social, technical, environmental and legal and is specified above.
Power Of Strategic Integration Case Study Analysis is an auto racing business with having USP of high quality auto racing with an international structure. Its sector is sports group and occasions.
Collaborations consists of suppliers, providers and alliances of Power Of Strategic Integration Case Study Analysis. It is worked together with various racing teams which are taking part in racing. It likewise worked together with Turners Sport for digital rights. NASCAR utilized to make money check of around $15 million each year 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 likewise had rights of every video which is shoot throughout race at track.
The consumer of Power Of Strategic Integration Case Study Analysis are its viewers. They target customers 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 develop generational commitment.
Groups normally represents sponsors in NASCAR and the medium of marketing is motorists. These chauffeurs can go against NASCAR if they got better chance in terms of rewards and tv exposure.
1. Establishing and Keeping Facebook Page.
One of the possible target audience segments for NASCAR is Hispanics which is the growing population section of USA but unfortunately NASCAR had actually been unable to bring in the this targeted segment. In order to bring in the young growing generation the NASCAR should market by utilizing social media like Facebook. It should establish a Facebook page containing the details regarding the races and the places of tracks to make the consumer helpful about the core operations of Power Of Strategic Integration Case Study Solution. It ought to also update its Facebook page on daily basis to offer details about its approaching events. This would make the target audience segment more informative about the business and would lead to attracting big fans base.
2. Establishing and Upgrading Accounts of Key Drivers.
NASCAR chauffeurs has a low star power as compare to players of other sports. Its ranks 7th in terms of star power (see Case Exhibition). The major factor behind it is that, the racers mostly play in groups and are not able to construct a key account and keep a close contact with fans. The poor contacts with fans lead to less attraction of audiences towards the racers and a low star power. Star power is an essential aspect for attracting viewers towards tracks and towards tv. The star power for the motorists at NASCARA might be enhanced by developing and updating accounts of essential chauffeurs by NASCARA itself. This would get rid of the requirement of requiring drivers to keep their accounts and would lead to increasing fans attention towards NASCARA chauffeurs.
3. Establishing New Games and enhancing current video games for kids.
In order to draw in these kids, NASCARA should improve its present racing games by presenting personalization in the cars i.e. altering colours, selection of speed, presenting group racing in the game, utilizing better graphics related to the racing tracks and presenting various levels in the game. All these adjustments in the present video game would offer much better experience to kids.
Together with it, NASCAR ought to likewise build brand-new video games related to racing like kids racing with kids characters as chauffeurs, animation racing with racing in between various animation characters with an option of choosing the preferred cartoon character for the kids. These techniques would enable the business to attract among its prospective target sections.
4. Presenting multiculturalism at occasions.
Power Of Strategic Integration Case Study Solution events are comprised of fans with really couple of cultural diversity, due to expense of arrival in occasions, making it unattractive for the clients viewing sport occasions as social occasions i.e. Generation Y clients. As the Generation Y consumers are a potential target audience for NASCAR, for that reason the company must take specific procedures to attract this possible target market. It must embrace techniques to attract the clients far from the tracks location with various culture. The technique to do so could be providing unique discount rates on tickets or free tickets to viewers coming from a specific range or from another state. It would increase cultural diversity of the fans and would make Generation Y consumers more satisfied.
5. Improving Client Experience at Tracks.
Power Of Strategic Integration Case Study Solution ought to deal with infrastructure and features at tracks because on the race day viewers got dissatisfied. Since in same industry other companies are supplying better services than NASCAR, audiences have many expectations from Power Of Strategic Integration Case Study Analysis. Then its fans may moved to its rivals, if NASCAR don't work on this concern. According to fans there were not appropriate centers were offered as compare to other sports providers. So NASCAR ought to make certain that it provide appropriate facilities that consists of cleaned up bathrooms, comfy seating plan. They ought to likewise provide WIFI services and accessibility of charge card throughout that track. It ought to be also ensure that there suffice jumbo turns positioned at all required places. There should be also food stalls that supply quality food to viewers. In this way viewers will be having pleasant experience at the day of occasion. (See Appendix B).
Marketing budget made on the basis of the above strategies for the period of 5 years from 2011 to 2015, reveals the expense associated information for the marketing strategies. (See Appendix B). It can be seen that technique 5 of enhancing customer experience at tracks would require highest initial investment and cost and strategy 4 of presenting multiculturalism will need most affordable initial financial investment with most affordable even more annually expense. The company needs to prioritize the resource allowance on these methods on the basis of its readily available resources and the possible benefits which the method would supply.
KEEP IN MIND: The values about expense are assumed on reasonable basis due the absence of figures and realities connected to cost in the case study. Inflation rate of United States is presumed 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 techniques are suggested to NASCAR to increase its fan base in long term. These methods would manage internal elements like bad consumer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, absence of culturalisms at tracks and so on, along with with external elements like shifting of fans towards other sports, demographical modifications in America and changing family life designs.