Technology Strategy For A Diversified Corporation Case Study Solution & Analysis
NASCAR (National Association for Stock Car Auto 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 Cars and truck Racing. 2) Stock Cars And Truck Racing by NASCAR is the second largest viewer sport, with greatest number of sponsors. 1) The other sources of earnings for Technology Strategy For A Diversified Corporation Case Study Help consists of; 10% of the overall earnings from television rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand to companies.
NASCAR has a closed business culture with the non-interventionist method. This non collective technique brings stress in the sport. The structure of Automobile of Tomorrow by Technology Strategy For A Diversified Corporation Case Study Solution, with an intention of security for the chauffeurs, brought numerous tensions amongst the stakeholders of the sport.
The communication audit, carried out in 2010, revealed that in spite of the fact that the service extremely rely on the interactions in between its stakeholders, there was no identifiable company communication strategy. (
The audit mentioned numerous lacking of NASCAR in terms of absence of internal integration, absence of fan management strategy and lack of digital and social media of marketing. The company has intricate community with independent tracks, teams and drivers. This structure with closed corporate culture bring different challenges in speeding up a change. Other partners in ecosystem consists of the media networks i.e. television and radio, and corporate marketers.
Technology Strategy For A Diversified Corporation Case Study Help audiences was extremely loyal to the sport and the brand names connected with the NASCAR, making it appealing for sponsors and business online marketers.
The company is currently dealing with the issue of decreasing rates of presence at racing tracks and rates of television viewers. This can put a significant influence on its incomes from sponsors, media rights, and from other sources of revenue.
The business was quite effective till 2005 with its standard marketing methods, but soon after 2005 the company starts facing various issues consisting of decrease of its fan base. Numerous external in addition to internal aspects are accountable for the decline. Internal aspects 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 youngsters and create 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 homes through jumbo turns, Wi-Fi gain access to, and so on.
NASCAR core competencies includes it has rights of determining rules as sanctioning body. Guidelines and regulations relating to expert stock vehicle racing are dictated by NASCAR like if any group with required abilities and resources can enter into races by following rules and guidelines determined by NASCAR. All the occasions of NASCAR are sponsored by corporates because of most significant brand name loyalty of fans towards brand names marketed by Technology Strategy For A Diversified Corporation Case Study Analysis.
Weak points of NASCAR includes its close culture which is non collaborative. Technology Strategy For A Diversified Corporation Case Study Analysis establishes Car of Tomorrow without cooperation so result is that drivers did not like that concept. It was likewise found that NASCAR had no effective method for business communication.
Opportunities in SWOT analysis are external aspects which can be beneficial to company or the external aspects on which company is having competitive benefit. NASCAR typically used to count on traditional media sources like local newspaper for publicity of its sports. Usually these conventional media sources attempt to cover their house team and specific type of occasions. NASCAR likewise familiarized from these traditional media outlets that sport was challenging to cover. Media landscape also altered from conventional 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 advantages. Digital rights of NASCAR were likewise sold to Turner Sports. NASCAR used to make money check of around $15 million each year from Turner Sports. There are variety of cons behind this offer. NASCAR had to get approval from Turner Sport if it want to create its Facebook page, twitter account or even mobile application. Turner Sport likewise had rights of every video which is shoot during race at track. If media sources like newspapers, magazines and cable television channels wish to publish videos of races on their respective pages then they are required to pay licensing costs to Turner Sport. NASCAR can work on conditions and terms and try to negotiate with Turner Sports to get optimal advantages of it. Star power plays extremely important function in generating profits from every sport. It was kept in mind that NASCAR is lagging in this location i.e. star power. For example when sports fans were asked relating to popular celebs and stars then NASCAR chauffeur was not found even in leading twenty actions. So NASCAR can put efforts in this location too for earnings generation. They should guide their motorists that how they can end up being sport stars. 4 tactical focuses which are created by research group can likewise be worked as chance for NESCAR. These four strategic focuses compares and analysis Technology Strategy For A Diversified Corporation Case Study Solution methods.
Dangers in SWOT analysis are specified as external elements that can threat to company's success. Since if there is economic down turn then people would be having less return on investment, Economic down turn was experienced in late 2000 which can be risk for NASCAR. Earning of individuals would be effected and they would be more conscious in spending their money. Economic down turn also leads to boost fuel costs which also affected NASCAR. Because fans of NASCAR utilized to attend its event from fars away. NESCAR had a guideline of 65/25/10 for revenue distribution. 65 percent incomes from media rights would be dispersed to race course, 25 percent income would be distributed to competing group and remaining 10 percent would be maintained by NESCAR which is sanctioning body. Completing group wanted to increase their part of earnings from 25 percent because of increase in operating expense of a race team and likewise there is decline in the number of full-season sponsorship. NESCAR also faces risks from other sponsors since they are making massive investments to enhance experience of fans. Which consists of updating existing opportunities, constructing brand-new opportunities, supplying Wi-Fi facility and also supplying other interactive mediums to engage sports on smartphones. Fan base of NASCAR comprised of married males with an average age of 47, which passes their fandom to their children and create generational commitment. So the difficulty is that the family system in America was changing resulting in reduction of influence of married male fan base over their youngsters. Along with it understandings about car was likewise changing with viewing cars and truck a car to reach at point B from point A, rather than as an enjoyable job. If NASCAR make considerable investments in new sectors which are based on new clients then it may deal with unfavorable comments from its core fan base, now.
Porter's Five Forces Analysis
Porter's 5 forces is a model that is used to analyse market in which business is working. It assists in identifying what are strengths and weak point of any particular market. It suggest that every market is different from one another. It is necessary to comprehend industry in which business is working due to the fact that NASCAR's bottom line i.e. net revenue is heavily depends upon this. There are 5 forces that are utilized to recognize success, intensity and appearance of Technology Strategy For A Diversified Corporation Case Study Analysis service.
These chauffeurs can go against NASCAR if they got better opportunity in terms of rewards and television direct exposure. If audiences delight in other race cars and trucks and motorists more than NASCAR then audiences can move to those other interesting cars and trucks and chauffeurs. NASCAR might be having danger from its two direct competitors that is Solution 1 and Moto GP.
If company shifts from one supplier to another, the supplier power indicates the number of suppliers are readily available in market and what is the cost associated with supplier. Since drivers with required skills and resources are restricted, in this industry there is supply monopoly.
This force is concerning to customers that is it simple for consumers to move to other products. If there is more changing expense is associated then consumers are less most likely to change. When it comes to NASCAR consumers are its viewers. Due to the fact that audiences will having low switching cost, audiences can switch to other rivals easily.
Risk of Substitution
Replacements are referred as options. The substitutes in this case can be other home entertainment suggests like viewers can move to other sports. So there are vast array of alternatives are offered in this scenario which suggests that threat of alternative is high.
Hazard of New Entry
In the case of NASCAR threat of brand-new entry is low. They need to build cars and racing tracks and likewise requires to pay substantial quantity to chauffeurs for changing.
It can not be concluded from case study that there would be modification in resource allocations. NASCAR had actually got take advantage of lower taxation policies which leads to increasing in revenues. So they made heavy investments in the research and development. As NASCAR is working in numerous markets so it requires to face different policies. It is likewise kept in mind that Technology Strategy For A Diversified Corporation Case Study Solution has actually dealt with increased examination concerning regulatory. Every federal government has various top priority so NASCAR needs to be gotten ready for it as concern can be moved to other sector.
Financial elements consists of tax rate, currency exchange rate, economic performance of that particular business, conditions of labour market, inflation rate and so on. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its rivals can be affected. NASCAR can leverage abilities of staff members to develop brand-new chances and improve existing chances.
Every society is various from each other. Each has various social values and standards. It assists in comprehending concerning society and preference of clients. Social factors includes traditions, culture, mindsets towards specific product and services, demographics, standards, interests etc. It can be concluded that marketing through other means instead of conventional (i.e. newspaper) can be chosen in this society.
In this case of NASCAR it can be kept in mind that companies 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 different legal terms and conditions, Legal plays an essential function in every nation. Technology Strategy For A Diversified Corporation Case Study Analysis requires to be make certain that they safeguard their legal rights in every county so any business does not hurt to its legal rights.
Ecological aspects are likewise essential for every organisation. NASCAR requires to make sure that its cars are not producing pollution more than appropriate level.
7 P's of Marketing
The items of Technology Strategy For A Diversified Corporation Case Study Analysis in its product portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, sanctioning guidelines for races and ad-space to corporate online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).
Prices technique of NASCAR for its race occasions tickets is based upon the location and value of the racing occasions. Along with race occasions tickets, NASCAR also charge various service fees to its stakeholders and makes profits. It charged approving charges of $1-2 million per race on average in 2005.
Advertising strategy 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 crucial tracks of NASCAR includes Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in the majority of the cities in United States to understand nationwide popularity.
Nestle people strategy is comprised of offering 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 Help A marketing strategy as its occasions are the source of home entertainment for crowd. Its individuals method 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 procedures are needed to perform racing occasions in an efficient way. These processes include; appropriate schedule of time, plan for spectators, offering tickets, arrangement of area for sponsors, handling logistics etc. These all procedures contribute I building NASCAR image, enhancing spectators experience and increasing fan base.
Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock vehicles and racing occasions. Together with it, its retailing brand names including t-shirts, caps, goodies etc., also act as a physical proof for NASCAR.
Item Life Cycle Evaluation.
The racing events by Technology Strategy For A Diversified Corporation Case Study Help was presented on June 19, 1949. The very first race was held at Charlotte Speedway in North Carolina. There had to do with 13000 fans present in the race. At the first phase competition for NASCAR was low, as the rivals drove the cars comparable to the cars driven by regular people.
After conducting its first race effectively the business moved towards building its own tracks. The first Technology Strategy For A Diversified Corporation Case Study Analysis based track, particularly the Darlington Raceway track, was started in 1950 in South Carolina. It was followed by establishment of more raceways including Daytona International Speedway, which was opened in 1959. After the growth of racing tracks the company moved towards relaying its races on tv in 1979. The very first occasion relayed on tv was flag-to-flag coverage of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular organization into one with international fan base. He initiated a brand-new era of financially rewarding sponsorships and tv agreements for NASCAR.
The maturity duration for NASCAR started with the efforts of William France Jr., with the business having wide variety of earnings sources. The company has about 500 sponsors with transmitting its occasions in about 150 nations. The company has large number of tracks in most of the cities of United States.
The decrease in the company's offerings started after 2005 with typical presence rate per race declined by 22% from 2005 to 2010 and television viewership rate declined by 30% from 2005 to 2010. The major causes of decline consist of the financial crisis of 2008, which increased the cost of arriving at tracks for viewers due to increasing fuel rates, and the shifting of its fan base towards other sports.
The marketplace segmentation of Technology Strategy For A Diversified Corporation Case Study Analysis can be divided into four segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Technology Strategy For A Diversified Corporation Case Analysis is based upon the geographical existence of its tracks in various states and cities in United States, and the television broadcasting of its events in different countries. The company has 23 tracks in about 20 states of America and has tv broadcast through numerous Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This vast geographical segmentation supplies the business regional as well as global fan base.
The market segmentation of NASCAR is likewise highlydiverse based upon the gender, earnings and age of the consumer. Its existing fan base is majorly comprised of male married fans with an average age of 47 years and an income around $30-50 thousands. Nevertheless presently NASCAR is attempting to increase its target market to the young growing population and kinds also. To increase the market sector of its market NASCAR ought to modify its marketing methods to attract more age groups and lower its costs to enter in the marketplace segment with a low average earnings.( htt1).
The psychological characteristics of most of the fans are quite similar. NASCAR has a fan base with a loyalty. Once in a week, NASCAR fans perceive it compulsive to purchase tickets and see the races. 71% of them prefer to buy items with a NASCAR trademark name. They are rather extrovert and are willing to mingle with other fans while racing. They want quality racing with low cost at convenient place. NASCAR has actually attempted to increase the quality of its racing by introducing stage racing, they likewise have actually attempted to lower prices and make the event more convenient by presenting 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 events. Presently, the fans preference is towards watching the race at house on tv rather than going, as the customer experience at NASCAR tracks is not beneficial as well as expensive.
One of the prospective target market of NASCAR was Hispanics; the young and growing population of United States. The market segment has great potential for NASCAR as the population was growing at a higher rate and it was anticipated to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014.
Kids are also one of the possible target market section for NASCAR, as they are more linked socially than other groups. Car racing games developed by Technology Strategy For A Diversified Corporation Case Study Help can be a possible source of gaining attention of kids towards NASCAR track racing. NASCAR requires more attention towards personalizing and enhancing its digital functions to attract the kids target market.
Generation Y target market consists of those who invested 5 times more resources on discretionary expenses i.e. purchasing tickets for racing events, than others. This substantial expense makes the section capacity for NASCAR marketing method of increasing its fan base. The marketplace segment is also easy to approach as 81% of the Y Generation customer uses Facebook every day and the use is two times of utilizing television and radio. The market segment views sports as an affair, instead of adherence to sport. The market section considers NASCAR as an organization doing not have in producing a multiculturalism atmosphere. Technology Strategy For A Diversified Corporation Case Study Help should take different actions to improve the experience of Generation Y customers in its occasions.
5 C's of Marketing
5 C's of marketing helps in taking choices concerning marketing.
It needs to make PESTLE analysis in order to comprehend climate or context in which NASCAR is working. PESTLE means political, economic, social, technical, ecological and legal and is mentioned above.
Technology Strategy For A Diversified Corporation Case Study Analysis is a vehicle racing business with having USP of high quality vehicle racing with a worldwide structure. Its sector is sports team and occasions.
Collaborations includes suppliers, providers and alliances of Technology Strategy For A Diversified Corporation Case Study Solution. It is collaborated with different racing teams which are taking part in racing. It also collaborated 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 offer. For instance 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 client of Technology Strategy For A Diversified Corporation Case Study Solution are its viewers. They target consumers with having age of 15-60 years. Fan base of NASCAR consisted of married males with a typical age of 47, which passes their fandom to their children and produce generational loyalty.
Teams generally represents sponsors in NASCAR and the medium of advertising is motorists. These drivers can go versus NASCAR if they got much better opportunity in terms of rewards and television direct exposure.
1. Preserving and developing 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 unable to attract the this targeted segment. It needs to develop a Facebook page including the information regarding the races and the locations of tracks to make the consumer helpful about the core operations of NASCAR.
2. Establishing and Updating Accounts of Secret Drivers.
NASCAR chauffeurs has a low star power as compare to gamers of other sports. Its ranks 7th in regards to star power (see Case Exhibit). The major factor behind it is that, the racers mostly play in groups and are not able to build an essential account and maintain a close contact with fans. The poor contacts with fans lead to less tourist attraction of viewers towards the racers and a low star power. Star power is an essential factor for attracting audiences towards tracks and towards tv. The star power for the motorists at NASCARA could be enhanced by creating and upgrading accounts of key chauffeurs by NASCARA itself. This would remove the requirement of forcing chauffeurs to maintain their accounts and would lead to increasing fans attention towards NASCARA motorists.
3. Developing New Games and improving present games for kids.
Kids invested most of their time on playing video games and utilizing smart devices. Unfortunately, kids playing NASCARA have a worst experience of playing its games. As a result, they are less attracted towards the sport. In order to bring in these kids, NASCARA needs to enhance its present racing video games by introducing modification in the vehicles i.e. changing colours, choice of speed, introducing group racing in the game, utilizing much better graphics connected to the racing tracks and presenting different levels in the game. All these adjustments in the existing game would supply much better experience to kids.
Together with it, NASCAR needs to also construct brand-new games connected to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between different animation characters with a choice of selecting the preferred cartoon character for the kids. These methods would allow the company to attract among its prospective target segments.
4. Presenting multiculturalism at events.
NASCAR events are comprised of fans with really few cultural variety, due to cost of arrival in events, making it unsightly for the consumers perceiving sport occasions as social events i.e. Generation Y customers. As the Generation Y customers are a prospective target market for NASCAR, for that reason the business ought to take certain measures to attract this possible target market.
5. Improving Consumer Experience at Tracks.
NASCAR ought to work on facilities and amenities at tracks because on the race day viewers got disappointed. Audiences have lots of expectations from Technology Strategy For A Diversified Corporation Case Study Help because in exact same industry other companies are offering much better services than NASCAR. IF NASCAR do not work on this issue then its fans may shifted to its competitors.
Marketing Spending plan
Marketing budget made on the basis of the above techniques for the period of 5 years from 2011 to 2015, reveals the cost associated data for the marketing strategies. (See Appendix B). It can be seen that technique 5 of improving consumer experience at tracks would need greatest preliminary investment and expense and strategy 4 of presenting multiculturalism will require least expensive initial investment with least expensive even more annually expense. The business should focus on the resource allocation on these methods on the basis of its readily available resources and the possible advantages which the method would provide.
NOTE: The values about expense are assumed on rational basis due the absence of truths and figures 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 external and internal aspects of Technology Strategy For A Diversified Corporation Case Study Solution triggering the decline of tv viewership rate and attendance rate at tracks, the above marketing methods are advised to NASCAR to increase its fan base in long run. These strategies would deal with internal elements like poor consumer experience at tracks, inadequate social media marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, in addition to with external aspects like shifting of fans towards other sports, demographical changes in America and changing family life designs.