Technology Strategy For A Diversified Corporation Case Study Solution and Analysis
Technology Strategy For A Diversified Corporation Case Study Solution (National Association for Stock Car Car Racing) is an organization carrying out series of Stock Car racing in United States and functioning as a sanctioning body for driving the rules for Stock Automobile Racing. The organization was founded in 1947, by "Big Expense" France. NASCAR set up Stock Cars and truck Racing events in United States with the presence of about 130000 viewers usually in 2005. It likewise broadcast its occasions in about 150 nations. Stock Automobile Racing by NASCAR is the 2nd biggest viewer sport, with greatest number of sponsors. It has about 500 sponsors contributing billions of dollars in its earnings. The other sources of earnings for Technology Strategy For A Diversified Corporation Case Study Analysis includes; 10% of the total earnings from tv rights, sanctioning fees i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed business culture with the non-interventionist technique. The structure of Automobile of Tomorrow by NASCAR, with an objective of security for the chauffeurs, brought various tensions among the stakeholders of the sport.
The interaction audit, conducted in 2010, exposed that despite the truth that business extremely depend on the interactions between its stakeholders, there was no identifiable organisation interaction strategy. The industry's target consumers, instructions and objectives were all unknown.
The audit pointed out different doing not have of NASCAR in terms of lack of internal integration, lack of fan management technique and absence of social and digital media of marketing.
Technology Strategy For A Diversified Corporation Case Study Solution viewers was highly loyal to the sport and the brands associated with the NASCAR, making it appealing for sponsors and corporate marketers.
The business is currently dealing with the issue of declining rates of participation at racing tracks and rates of tv audiences. This can put a significant impact on its earnings from sponsors, media rights, and from other sources of earnings.
Although the business was rather effective till 2005 with its conventional marketing strategies, however soon after 2005 the business begins facing various problems consisting of decrease of its fan base. A number of external in addition to internal factors are responsible for the decrease. Internal aspects include; insufficient financial investment in social media and other digital medias of.
Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their youngsters and produce generational commitment. The household system in America was altering resulting in reduction of influence of married male fan base over their children. Together with it perceptions about car was also changing with viewing vehicle an automobile to reach at point B from point A, rather than as an enjoyable task. Other challenges for Technology Strategy For A Diversified Corporation Case Study Solution includes the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, etc. These all challenges were tending the company to revise its marketing methods.
In SWOT analysis, strengths defined as business's qualities which are various from its rivals. These are company's core proficiencies on which company efficiency or business success based upon. Technology Strategy For A Diversified Corporation Case Study Analysis core competencies includes it has rights of dictating guidelines as sanctioning body. Policies and rules relating to professional stock vehicle racing are dictated by NASCAR like if any team with required skills and resources can participate in races by following rules and policies determined by NASCAR. NASCAR has monopoly it this aspect. Its strengths also consists of that it has title of second biggest spectator sport in the United States with having more fortune 500 sponsors based in United States. Its races were utilized to broadcast in more than 150 countries around the world with more than $56 million earnings. The main sources of their revenues come from tv rights, sanctioning charges, sponsorship and licensing. It has longest season of 10 months and having ownership of 3 national series i.e. Camping World Truck Series, the Sprint Cup Series and the Nationwide Series. It has also big resource of fans and business sponsors. Because of most significant brand name loyalty of fans towards brands advertised by NASCAR, all the events of NASCAR are sponsored by corporates. (See Appendix A).
Weak Points in SWOT Analysis are considered as external aspects. Weak points consists of the factors that stops company to perform at needed level of efficiency. Weak points of NASCAR includes its close culture which is non collaborative. They have non-interventionist technique. They generally used to form rules and other needed procedures without intervention of others which leads to bad partnership. For instance NASCAR establishes Car of Tomorrow without collaboration so result is that chauffeurs did not like that principle. As this is racing sport so covering of sports by media is likewise challenging. It was also discovered that NASCAR had no efficient technique for company communication. They do not know how to deal with issue if it happened off track. Inadequate company communication results in that they do not have clear direction for their long term objectives. They don't know that where they want to see this sport in future.
NASCAR typically used to rely on traditional media sources like local paper for publicity of its sports. NASCAR likewise came to understand from these standard media outlets that sport was difficult to cover. When sports fans were asked relating to popular stars and stars then NASCAR driver was not discovered even in leading twenty actions.
Hazards in SWOT analysis are specified as external elements that can danger to company's success. Since if there is financial down turn then people would be having less return on investment, Economic down turn was experienced in late 2000 which can be hazard for NASCAR. Earning of individuals would be effected and they would be more conscious in investing their cash. Economic down turn also leads to boost fuel prices which also affected NASCAR. Due to the fact that fans of NASCAR utilized to attend its occasion from long distances. NESCAR had a rule of 65/25/10 for profits circulation. 65 percent earnings from media rights would be distributed to race course, 25 percent earnings would be dispersed to competing group and remaining 10 percent would be kept by NESCAR which is sanctioning body. Completing group wished to increase their part of earnings from 25 percent since of increase in operating expense of a race group and also there is decrease in the variety of full-season sponsorship. Because they are making huge investments to enhance experience of fans, nescar likewise deals with dangers from other sponsors. Which includes updating existing opportunities, building brand-new opportunities, providing Wi-Fi facility and also providing other interactive mediums to engage sports on smart devices. Fan base of NASCAR consisted of married males with an average age of 47, which passes their fandom to their children and produce generational loyalty. So the obstacle is that the family system in America was changing resulting in reduction of influence of married male fan base over their children. In addition to it understandings about automobile was also altering with perceiving vehicle a lorry to reach at point B from point A, instead of as a fun job. If NASCAR make significant financial investments in brand-new sections which are based on brand-new consumers then it might face unfavorable comments from its core fan base, now.
Porter's 5 Forces Analysis
It is crucial to understand industry in which business is working since NASCAR's bottom line i.e. net earnings is heavily depends on this. There are 5 forces that are used to identify success, strength and beauty of NASCAR business.
These chauffeurs can go against NASCAR if they got much better opportunity in terms of rewards and tv exposure. If viewers take pleasure in other race cars and trucks and drivers more than NASCAR then viewers can shift to those other interesting cars and drivers. NASCAR might be having threat from its 2 direct rivals that is Solution 1 and Moto GP.
If company shifts from one supplier to another, the provider power shows the number of suppliers are offered in market and what is the cost associated with provider. Because drivers with required abilities and resources are restricted, in this market there is supply monopoly.
In the case of NASCAR clients are its viewers. Audiences can change to other competitors quickly because viewers will having low changing expense.
Risk of Alternative
Alternatives are referred as alternatives. The substitutes in this case can be other entertainment indicates like audiences can shift to other sports. There are large variety of alternatives are readily available in this scenario which suggests that risk of alternative is high.
Danger of New Entry
It is specified as how it is easy for any company to enter in that specific market. In the case of Technology Strategy For A Diversified Corporation Case Study Solution hazard of brand-new entry is low. Due to the fact that if any business requires to enter in this organisation than they need to make heavy financial investments. They require to develop automobiles and racing tracks and likewise needs to pay large amount to chauffeurs for changing.
As NASCAR is working in different markets so it needs to deal with various policies. It is likewise kept in mind that NASCAR has dealt with increased examination regarding regulatory. Every government has different concern so NASCAR has to be prepared for it as concern can be moved to other sector.
Economic elements includes taxation rate, exchange rate, economic efficiency of that specific business, conditions of labour market, inflation rate and so on. Fortunes of the NASCAR and its competitors can be impacted if there is government intervention in the marketing and sales sector. NASCAR can utilize capabilities of staff members to create new opportunities and enhance existing opportunities.
Each has various social values and standards. It helps in comprehending concerning society and choice of clients.
In this case of NASCAR it can be noted that companies are heavily investing for research and advancement. NASCAR ought to likewise work on its media rights policy with Turner Broadcasting System.
Legal plays an essential function in every country because every nation has various legal terms and conditions. Technology Strategy For A Diversified Corporation Case Study Solution requires to be make certain that they safeguard their legal rights in every county so any business does not damage to its legal rights.
Ecological factors are likewise crucial for every service. Due to the fact that generally governments don't permit those service which can hurt to environment. These environmental factors consists of laws relating to contamination, climate modification, safe garbage disposal, policies concerning insurance etc. NASCAR requires to ensure that its cars and trucks are not creating contamination more than acceptable level.
7 P's of Marketing
The products of Technology Strategy For A Diversified Corporation Case Study Solution in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning guidelines for races and ad-space to corporate online marketers during broadcast of NASCAR races. (Hanlon, 2018).
Rates technique of NASCAR for its race events tickets is based upon the place and significance of the racing occasions. Together with race events tickets, NASCAR likewise charge various service fees to its stakeholders and makes income. For instance it charged approving fees of $1-2 million per race usually in 2005.
Promotional method of Technology Strategy For A Diversified Corporation Case Study Solution is extremely based upon its fan base. A strong fan base share its fandom with others and increase the variety of audiences for NASCAR races. The business is not totally relied upon its fan base for its promotion and promote through regional radio stations too. The company has actually likewise adopted the merchandising media of promo, in which the business offers products with its logo.
NASCAR have its racing tracks in different 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 tries to perform its races in the majority of the cities in United States to understand across the country popularity.
Nestle individuals strategy is comprised of offering much better experience to its audiences, its fan base and to all of its stakeholders. People are an essential element of Technology Strategy For A Diversified Corporation Case Study Analysis A marketing technique as its events are the source of entertainment for crowd. Its individuals strategy includes efforts to offer much better experience to its Fans, Race Drivers, Team, Event Organizers etc., all of which come under people strategy of NASCAR.
Numerous business processes are required to conduct racing occasions in an efficient way. These processes consist of; correct schedule of time, arrangement for viewers, selling tickets, plan of area for sponsors, handling logistics and so on. These all processes contribute I building NASCAR image, enhancing viewers experience and increasing fan base.
Crucial physical evidences for the NASCAR includes the existence of its racing tracks, stock vehicles and racing occasions. Together with it, its retailing brands including t-shirts, caps, goodies and so on, likewise serve as a physical evidence for NASCAR.
Product Life Process Assessment.
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 vehicles similar to the vehicles driven by common individuals.
The 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 transmitting its races on television in 1979.
In 1972, William France Jr., ended up being the president of NASCAR and n about 3 years, he transformed NASCAR from a local Sport popular organization into one with global fan base. He started a new period of rewarding sponsorships and television agreements for NASCAR.
The maturity duration for NASCAR started with the efforts of William France Jr., with the business having large range of revenue sources. The company has about 500 sponsors with broadcasting its occasions in about 150 nations. The company has a great deal of tracks in most of the cities of United States.
The significant causes of decline include the financial crisis of 2008, which increased the cost of arriving at tracks for viewers due to increasing fuel costs, and the shifting of its fan base towards other sports.
The marketplace segmentation of Technology Strategy For A Diversified Corporation Case Study Solution can be divided into four sectors; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
The geographical segmentation of Technology Strategy For A Diversified Corporation Case Help is based upon the geographical existence of its tracks in numerous 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 television broadcast through different Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This huge geographical segmentation provides the company local as well as worldwide fan base.
The demographic division of Technology Strategy For A Diversified Corporation Case Study Help is likewise highlydiverse based upon the gender, earnings and age of the customer. To increase the demographic section of its market NASCAR need to modify its marketing methods to attract more age groups and lower its rates to enter in the market section with a low average income.
The mental attributes of the majority of the fans are rather similar. NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to purchase tickets and see the races when in a week. 71% of them prefer to buy items with a NASCAR brand name. They are rather extrovert and want to mingle with other fans while racing. They want quality racing with low rate at hassle-free place. Although Technology Strategy For A Diversified Corporation Case Study Help has actually tried to increase the quality of its racing by introducing phase racing, they likewise have tried to lower prices and make the event more convenient by introducing live racing.
Behavioural segmentation of Technology Strategy For A Diversified Corporation Case Study Analysis is based upon the behaviour of fans in regards to enjoying the race live on the television or by entering the occasions. Presently, the fans preference is towards seeing the race at home on television rather than going, as the customer experience at NASCAR tracks is not beneficial in addition to costly. This choice makes the rates for presence lower than the rates for television viewers. NASCAR needs to alter the behaviour of its fan base by introducing qualitative services at its tracks.
One of the potential target market of NASCAR was Hispanics; the young and growing population of United States. The market sector has fantastic prospective 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 likewise one of the possible target audience sector for NASCAR, as they are more linked socially than other groups. Developing fan base amongst kids can provide a potential boost in the variety of fans for racing due to their connection. Kids spend the majority of their times in playing and utilizing mobile phones computer game. Automobile racing games established by Technology Strategy For A Diversified Corporation Case Study Analysis can be a potential source of getting attention of kids towards NASCAR track racing. However, NASCAR's digital features associated with kids are not capable of acquiring the attention. NASCAR requires more attention towards tailoring and improving its digital features to bring in the kids target market.
This huge expenditure makes the section potential for NASCAR marketing method of increasing its fan base. The market segment thinks about NASCAR as a company lacking in producing a multiculturalism atmosphere. NASCAR needs to take numerous steps to improve the experience of Generation Y consumers in its events.
5 C's of Marketing
5 C's of marketing assists in taking choices relating to marketing.
It needs to make PESTLE analysis in order to comprehend environment or context in which NASCAR is working. PESTLE means political, economic, social, technical, legal and ecological and is stated above.
Technology Strategy For A Diversified Corporation Case Study Solution is an automobile racing company with having USP of high quality auto racing with a global structure. Its sector is sports team and events.
Collaborations consists of distributors, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million yearly from Turner Sports. NASCAR had to get approval from Turner Sport if it want to produce its Facebook page, twitter account or even mobile application.
The customer 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 an average age of 47, which passes their fandom to their children and develop generational loyalty.
Groups usually represents sponsors in NASCAR and the medium of marketing is drivers. These motorists can go against NASCAR if they got better chance in terms of rewards and television exposure.
1. Establishing and Maintaining Facebook Page.
One of the prospective target audience sections for NASCAR is Hispanics which is the growing population segment of U.S.A. however regrettably NASCAR had actually been unable to attract the this targeted section. In order to attract the young growing generation the NASCAR need to market by utilizing social media like Facebook. It must establish a Facebook page consisting of the info regarding the races and the areas of tracks to make the customer useful about the core operations of Technology Strategy For A Diversified Corporation Case Study Help. It should likewise upgrade its Facebook page on day-to-day basis to offer details about its upcoming occasions. This would make the target audience segment more informative about business and would lead to attracting large fans base.
2. Developing and Upgrading Accounts of Key Drivers.
Technology Strategy For A Diversified Corporation Case Study Analysis motorists has a low star power as compare to gamers of other sports. The poor contacts with fans result in less attraction of audiences towards the racers and a low star power. Star power is an essential aspect for bring in viewers towards tracks and towards television.
3. Developing New Games and improving current video games for kids.
Kids invested most of their time on playing games and utilizing smart devices. But 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 attract these kids, NASCARA must improve its existing racing games by introducing personalization in the cars and trucks i.e. altering colours, selection of speed, introducing group racing in the video game, utilizing better graphics associated with the racing tracks and introducing numerous levels in the video game. All these modifications in the current video game would supply better experience to kids.
In addition to it, NASCAR should likewise build brand-new games related to racing like kids racing with kids characters as chauffeurs, cartoon racing with racing in between different cartoon characters with an option of picking the favourite animation character for the kids. These methods would enable the company to draw in among its possible target sections.
4. Presenting multiculturalism at occasions.
Technology Strategy For A Diversified Corporation Case Study Help events are comprised of fans with really few cultural diversity, due to expense of arrival in occasions, making it unattractive for the consumers perceiving sport events as affairs i.e. Generation Y customers. As the Generation Y customers are a possible target market for NASCAR, therefore the company needs to take specific measures to attract this potential target audience. It needs to embrace methods to draw in the clients far from the tracks location with various culture. The technique to do so could be providing special discount rates on tickets or free tickets to audiences originating from a particular distance or from another state. It would increase cultural diversity of the fans and would make Generation Y consumers more pleased.
5. Improving Customer Experience at Tracks.
Technology Strategy For A Diversified Corporation Case Study Analysis should deal with infrastructure and features at tracks because on the race day audiences got dissatisfied. Audiences have numerous expectations from NASCAR since in same market other companies are providing much better services than NASCAR. Then its fans might shifted to its competitors, if NASCAR don't work on this concern. According to fans there were not sufficient centers were readily available as compare to other sports suppliers. NASCAR should make sure that it provide sufficient facilities that includes cleaned up washrooms, comfy seating plan. They ought to likewise offer WIFI services and availability of charge card throughout that track. It should be likewise ensure that there are enough jumbo turns positioned at all needed locations. There should be likewise food stalls that supply quality food to viewers. In this method audiences will be having pleasant experience at the day of event. (See Appendix B).
Marketing Spending plan.
Marketing budget made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, shows the cost related data for the marketing methods. (See Appendix B). It can be seen that method 5 of improving consumer experience at tracks would require greatest initial investment and expense and strategy 4 of introducing multiculturalism will require lowest preliminary investment with most affordable even more annually cost. The business should prioritize the resource allowance on these methods on the basis of its readily available resources and the possible advantages which the technique would supply.
KEEP IN MIND: The values about expense are assumed on reasonable basis due the absence of realities and figures associated with 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 factors of Technology Strategy For A Diversified Corporation Case Study Solution causing the decline of tv viewership rate and participation rate at tracks, the above marketing methods are recommended to NASCAR to increase its fan base in long term. These methods would handle internal elements like poor consumer experience at tracks, inadequate social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, as well as with external aspects like moving of fans towards other sports, demographical modifications in America and changing domesticity styles.