Technology Strategy For A Diversified Corporation Case Study Solution & Analysis
NASCAR (National Association for Stock Automobile Automobile Racing) is an organization performing series of Stock Car racing in United States and acting as an approving body for driving the rules for Stock Automobile Racing. 2) Stock Cars And Truck Racing by NASCAR is the second biggest viewer sport, with highest number of sponsors. 1) The other sources of revenue for Technology Strategy For A Diversified Corporation Case Study Analysis includes; 10% of the total income from television rights, sanctioning charges i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed corporate culture with the non-interventionist approach. Nevertheless this non collaborative method brings tensions in the sport. The structure of Cars and truck of Tomorrow by Technology Strategy For A Diversified Corporation Case Study Analysis, with an objective of security for the chauffeurs, brought numerous stress among the stakeholders of the sport.
The interaction audit, carried out in 2010, exposed that despite the reality that the business extremely rely on the interactions between its stakeholders, there was no recognizable service communication strategy. (
The audit pointed out numerous lacking of NASCAR in terms of lack of internal combination, lack of fan management method and absence of social and digital media of marketing.
Technology Strategy For A Diversified Corporation Case Study Help viewers was extremely devoted to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and corporate online marketers.
The business is presently facing the issue of declining rates of presence at racing tracks and rates of television audiences. This can put a considerable effect on its incomes from sponsors, media rights, and from other sources of revenue.
The business was rather successful till 2005 with its conventional marketing techniques, however soon after 2005 the business starts dealing with different issues including decrease of its fan base. Several external along with internal factors are responsible for the decline. Internal aspects include; insufficient 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 produce generational loyalty. But the household system in America was changing resulting in reduction of impact of married male fan base over their youngsters. In addition to it understandings about cars and truck was also changing with viewing cars and truck a car to reach at point B from point A, instead of as an enjoyable job. Other difficulties for Technology Strategy For A Diversified Corporation 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 gain access to, etc. These all difficulties were tending the company to revise its marketing strategies.
NASCAR core competencies includes it has rights of determining guidelines as approving body. Regulations and guidelines concerning expert stock cars and truck racing are determined by NASCAR like if any group with needed skills and resources can get in into races by following guidelines and guidelines dictated by NASCAR. All the events of NASCAR are sponsored by corporates due to the fact that of most significant brand name loyalty of fans towards brand names advertised by Technology Strategy For A Diversified Corporation Case Study Solution.
Weak points of NASCAR includes its close culture which is non collective. Technology Strategy For A Diversified Corporation Case Study Solution establishes Cars and truck of Tomorrow without collaboration so result is that drivers did not like that idea. It was likewise discovered that NASCAR had no reliable method for company interaction.
NASCAR generally utilized to rely on traditional media sources like regional newspaper for promotion of its sports. NASCAR likewise came to know from these standard media outlets that sport was difficult to cover. When sports fans were asked relating to popular celebrities and stars then NASCAR driver was not discovered even in top twenty reactions.
Hazards in SWOT analysis are defined as external elements that can risk to business's success. Because if there is economic down turn then individuals would be having less return on financial 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 investing their cash. Economic down turn likewise results in increase fuel rates which also affected NASCAR. Due to the fact that fans of NASCAR used to attend its occasion from fars away. NESCAR had a guideline of 65/25/10 for profits distribution. 65 percent revenues from media rights would be dispersed to race tracks, 25 percent income would be distributed to competing group and staying 10 percent would be maintained by NESCAR which is sanctioning body. Contending team wished to increase their portion of profits from 25 percent due to the fact that of boost in running expense of a race group and likewise there is decline in the number of full-season sponsorship. NESCAR likewise deals with dangers from other sponsors due to the fact that they are making massive financial investments to improve experience of fans. For example which includes updating existing opportunities, developing brand-new opportunities, supplying Wi-Fi facility and also providing other interactive mediums to engage 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 produce generational commitment. So the difficulty is that the household system in America was changing leading to reduction of influence of married male fan base over their children. Together with it understandings about automobile was also altering with viewing cars and truck a vehicle to reach at point B from point A, rather than as an enjoyable job. If NASCAR make substantial financial investments in brand-new segments which are based on new customers then it may deal with unfavorable remarks from its core fan base, now.
Porter's Five Forces Analysis
Porter's 5 forces is a design that is used to analyse industry in which business is working. It helps in identifying what are strengths and weakness of any specific industry. It suggest that every market is various from one another. It is essential to comprehend industry in which company is working because NASCAR's bottom line i.e. net profit is heavily depends on this. There are 5 forces that are utilized to recognize success, intensity and attractiveness of Technology Strategy For A Diversified Corporation Case Study Analysis organisation.
These chauffeurs can go against NASCAR if they got better opportunity in terms of rewards and television direct exposure. If viewers delight in other race automobiles and drivers more than NASCAR then viewers can shift to those other interesting cars and trucks and motorists. NASCAR might be having danger from its 2 direct rivals that is Formula 1 and Moto GP.
If company shifts from one supplier to another, the provider power indicates the number of providers are available in market and what is the cost associated with provider. Since motorists with needed skills and resources are limited, in this market there is supply monopoly.
In the case of NASCAR clients are its viewers. Viewers can switch to other rivals easily since audiences will having low switching cost.
Hazard of Alternative
Alternatives are referred as options. The alternatives in this case can be other entertainment implies like viewers can move to other sports. So there are vast array of replacements are offered in this scenario which recommends that danger of alternative is high.
Hazard of New Entry
It is defined as how it is easy for any business to enter in that particular industry. In the case of Technology Strategy For A Diversified Corporation Case Study Help threat of brand-new entry is low. Since if any business needs to enter in this organisation than they need to make heavy investments. They need to build cars and trucks and racing tracks and also requires to pay substantial total up to chauffeurs for changing.
As NASCAR is working in numerous markets so it needs to face various policies. It is also noted that NASCAR has actually dealt with increased scrutiny regarding regulatory. Every federal government has various top priority so NASCAR has actually to be prepared for it as priority can be moved to other sector.
Financial elements consists of tax rate, currency exchange rate, economic performance of that specific company, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its competitors can be affected if there is federal government intervention in the marketing and sales sector. NASCAR can leverage abilities of staff members to create new opportunities and improve existing chances.
Each has different social worths and norms. It helps in comprehending relating to society and preference of customers.
In this case of NASCAR it can be kept in mind that companies are heavily spending for research and development. NASCAR ought to likewise work on its media rights policy with Turner Broadcasting System.
Legal plays an important role in every nation due to the fact that every nation has various legal terms. Technology Strategy For A Diversified Corporation Case Study Solution needs to be ensure that they protect their legal rights in every county so any company does not damage to its legal rights.
Ecological factors are likewise important for every service. NASCAR needs to make sure that its cars and trucks are not generating pollution more than acceptable level.
7 P's of Marketing
The items of Technology Strategy For A Diversified Corporation Case Study Help in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning guidelines for races and ad-space to corporate marketers during broadcast of NASCAR races. (Hanlon, 2018).
Prices method of NASCAR for its race occasions tickets is based upon the location and value of the racing events. Together with race occasions tickets, NASCAR also charge different service fees to its stakeholders and earns income. For instance it charged approving costs of $1-2 million per race typically in 2005.
Promotional technique of Technology Strategy For A Diversified Corporation Case Study Help is highly based upon its fan base. A strong fan base share its fandom with others and increase the number of viewers for NASCAR races. The company is not completely relied upon its fan base for its promo and promote through regional radio stations too. The company has also adopted the retailing media of promo, in which the company sells products with its logo.
NASCAR have its racing tracks in various cities in United States. The most important tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Auto Club Speedway in California and Darlington Raceway in South Carolina. It attempts to conduct its races in the majority of the cities in United States to comprehend nationwide popularity.
Nestle individuals method is comprised of supplying better experience to its viewers, its fan base and to all of its stakeholders. Individuals are an essential aspect of Technology Strategy For A Diversified Corporation Case Study Solution A marketing technique as its events are the source of home entertainment for crowd. Its people strategy includes efforts to supply better experience to its Fans, Race Drivers, Crew, Event Organizers and so on, all of which come under people strategy of NASCAR.
Several company procedures are required to perform racing events in an effective way. These processes include; correct schedule of time, plan for viewers, offering tickets, arrangement of space for sponsors, handling logistics etc. These all processes contribute I constructing NASCAR image, improving spectators experience and increasing fan base.
Most important physical evidences for the NASCAR includes the presence of its racing tracks, stock cars and trucks and racing events. In addition to it, its merchandising brands consisting of t-shirts, caps, goodies etc., also act as a physical proof for NASCAR.
Product Life Cycle Assessment.
The racing events by Technology Strategy For A Diversified Corporation Case Study Help was introduced on June 19, 1949. The first race was held at Charlotte Speedway in North Carolina. There were about 13000 fans present in the race. At the very first stage competition for NASCAR was low, as the rivals drove the automobiles similar to the cars driven by ordinary people.
After performing its very first race successfully the business moved towards constructing its own tracks. The first Technology Strategy For A Diversified Corporation Case Study Solution based track, particularly the Darlington Raceway track, was initiated 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 growth of racing tracks the business moved towards broadcasting its races on television in 1979. The first occasion broadcasted 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 changed NASCAR from a local Sport popular company into one with worldwide fan base. He started a brand-new era of lucrative sponsorships and television contracts for NASCAR.
The maturity period for NASCAR began with the efforts of William France Jr., with the company having wide range of revenue sources. The company has about 500 sponsors with transmitting its occasions in about 150 countries. The company has a great deal of tracks in most of the cities of United States.
The decline in the company's offerings started after 2005 with typical presence rate per race decreased by 22% from 2005 to 2010 and tv viewership rate declined by 30% from 2005 to 2010. The significant reasons for decrease consist of the financial crisis of 2008, which increased the cost of reaching tracks for audiences due to increasing fuel rates, and the shifting of its fan base towards other sports.
The market segmentation of Technology Strategy For A Diversified Corporation Case Study Solution can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical division of Technology Strategy For A Diversified Corporation Case Solution is based upon the geographical presence of its tracks in different states and cities in United States, and the television broadcasting of its occasions in different nations. The business has 23 tracks in about 20 states of America and has tv broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical division offers the company local along with global fan base.
The market division of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the consumer. Its existing fan base is majorly consisted of male married fans with an average age of 47 years and an earnings around $30-50 thousands. Presently NASCAR is trying to increase its target market to the young growing population and kinds. To increase the group sector of its market NASCAR must revise its marketing methods to draw in more age groups and lower its prices to enter in the marketplace segment with a low average earnings.( htt1).
NASCAR has a fan base with a commitment. NASCAR fans view it compulsive to acquire tickets and see the races when in a week. NASCAR has actually tried to increase the quality of its racing by presenting phase racing, they also have tried to lower prices and make the occasion more hassle-free 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. Currently, the fans choice is towards viewing the race at house on television rather than going, as the consumer experience at NASCAR tracks is not favourable as well as pricey.
One of the potential target market of Technology Strategy For A Diversified Corporation Case Study Analysis was Hispanics; the young and growing population of United States. The market section has excellent possible for NASCAR as the population was growing at a greater rate and it was anticipated to become 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 automobile culture, however require a more focused marketing towards welcoming the section towards racing.
Kids are likewise among the prospective target audience segment for NASCAR, as they are more connected socially than other groups. Developing fan base among kids can supply a prospective increase in the number of fans for racing due to their connection. Kids invest the majority of their times in using mobile phones and playing computer game. Car racing games established by Technology Strategy For A Diversified Corporation Case Study Solution can be a potential source of gaining attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital functions related to kids are not capable of getting the attention. NASCAR requires more attention towards personalizing and enhancing its digital functions to draw in the kids target audience.
This huge expenditure makes the segment potential for NASCAR marketing strategy of increasing its fan base. The market sector thinks about NASCAR as a company lacking in creating a multiculturalism atmosphere. NASCAR needs to take numerous actions to enhance the experience of Generation Y customers in its events.
5 C's of Marketing
5 C's of marketing helps in taking decisions regarding marketing.
It requires to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE stands for political, financial, social, technical, legal and environmental and is mentioned above.
Technology Strategy For A Diversified Corporation Case Study Analysis is an auto racing company with having USP of high quality vehicle racing with a worldwide structure. Its sector is sports group and occasions.
Collaborations includes distributors, providers and alliances of Technology Strategy For A Diversified Corporation Case Study Solution. It is collaborated with different racing groups which are taking part in racing. It also collaborated 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 needed to get approval from Turner Sport if it want to develop its Facebook page, twitter account or perhaps mobile application. Turner Sport likewise had rights of every single video which is shoot throughout race at track.
The client of Technology Strategy For A Diversified Corporation Case Study Help 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 create generational loyalty.
The direct rivals of NASCAR are Solution 1 and Moto GP. Teams typically represents sponsors in NASCAR and the medium of advertising is drivers. It can be stated that chauffeurs and race automobiles are competitors. If they got better chance in terms of rewards and tv direct exposure, these drivers can go against NASCAR.
1. Preserving and establishing Facebook Page.
One of the potential target markets sectors for NASCAR is Hispanics which is the growing population segment of USA however regrettably NASCAR had been not able to draw in the this targeted segment. In order to attract the young growing generation the NASCAR ought to market by using social media like Facebook. It must develop a Facebook page including the information concerning the races and the areas of tracks to make the customer helpful about the core operations of Technology Strategy For A Diversified Corporation Case Study Solution. It needs to likewise update its Facebook page on daily basis to provide information about its approaching occasions. This would make the target audience section more informative about the business and would result in attracting large fans base.
2. Establishing and Upgrading Accounts of Secret Drivers.
Technology Strategy For A Diversified Corporation Case Study Solution drivers has a low star power as compare to players of other sports. The bad contacts with fans result in less attraction of audiences towards the racers and a low star power. Star power is an important factor for drawing in audiences towards tracks and towards television.
3. Developing New Games and enhancing existing games for kids.
In order to attract these kids, NASCARA must enhance its present racing video games by presenting modification in the cars i.e. changing colours, selection of speed, presenting group racing in the video game, using better graphics related to the racing tracks and introducing numerous levels in the video game. All these modifications in the current game would supply much better experience to kids.
Together with it, NASCAR should likewise build new games related to racing like kids racing with kids characters as chauffeurs, animation racing with racing between numerous animation characters with an option of selecting the favourite animation character for the kids. These strategies would enable the business to bring in among its potential target sectors.
4. Presenting multiculturalism at occasions.
NASCAR events are made up of fans with really couple of cultural diversity, due to cost of arrival in occasions, making it unsightly for the customers perceiving sport events as social celebrations i.e. Generation Y clients. As the Generation Y clients are a potential target market for NASCAR, therefore the business needs to take particular measures to attract this prospective target market.
5. Improving Consumer Experience at Tracks.
Technology Strategy For A Diversified Corporation Case Study Solution must work on infrastructure and facilities at tracks since on the race day viewers got dissatisfied. Since in very same market other business are offering better services than NASCAR, audiences have numerous expectations from Technology Strategy For A Diversified Corporation Case Study Help. Then its fans may shifted 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 companies. So NASCAR needs to ensure that it offer sufficient centers that includes cleaned up restrooms, comfy seating arrangement. They ought to likewise provide WIFI services and accessibility of credit cards throughout that track. It should be also make sure that there suffice jumbo turns placed at all required places. There must be also food stalls that provide quality food to audiences. In this method audiences will be having pleasant experience at the day of event. (See Appendix B).
Marketing Budget plan
Marketing budget made on the basis of the above methods for the duration of 5 years from 2011 to 2015, reveals the expense associated data for the marketing strategies. It can be seen that method 5 of enhancing customer experience at tracks would need highest preliminary financial investment and cost and technique 4 of introducing multiculturalism will require lowest initial financial investment with lowest even more per year cost.
KEEP IN MIND: The worths about expense are assumed on rational basis due the absence of facts and figures associated with cost in the case study. Inflation rate of United States is assumed to be 10%.
On the basis of deep analysis of the internal and external elements of Technology Strategy For A Diversified Corporation Case Study Solution causing the decrease of television viewership rate and attendance rate at tracks, the above marketing strategies are recommended to NASCAR to increase its fan base in long term. These techniques would manage internal elements like poor consumer experience at tracks, inadequate social media marketing, incapable digital medias like games, lack of culturalisms at tracks etc., along with with external factors like moving of fans towards other sports, demographical changes in America and altering family life designs.