Time Warner Vs The Walt Disney Co A Pulling The Plug Online Case Study Solution

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Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution & Analysis


NASCAR (National Association for Stock Cars And Truck Vehicle Racing) is an organization performing series of Stock Vehicle racing in United States and acting as a sanctioning body for driving the rules for Stock Vehicle Racing. 2) Stock Vehicle Racing by NASCAR is the 2nd biggest spectator sport, with highest number of sponsors. 1) The other sources of profits for Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help includes; 10% of the overall profits from television rights, approving charges i.e. $1-2 million per race, and licencing NASCAR brand to business.

NASCAR has a closed corporate culture with the non-interventionist approach. Nevertheless this non collaborative technique brings stress in the sport. The structure of Cars and truck of Tomorrow by Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution, with an intent of security for the drivers, brought different stress amongst the stakeholders of the sport.
Executive Summary
The interaction audit, carried out in 2010, revealed that regardless of the truth that the business highly depend on the interactions between its stakeholders, there was no identifiable service interaction technique. The industry's target customers, instructions and objectives were all unidentified.

The audit explained various lacking of NASCAR in regards to lack of internal integration, absence of fan management strategy and lack of digital and social media of marketing. The business has complex ecosystem with independent tracks, groups and motorists. This structure with closed corporate culture bring numerous obstacles in speeding up a change. Other partners in community includes the media networks i.e. tv and radio, and business marketers.

Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help viewers was extremely devoted to the sport and the brands associated with the NASCAR, making it appealing for sponsors and corporate marketers.

Issue Statement.

The company is presently dealing with the issue of declining rates of presence at racing tracks and rates of television audiences. This can put a considerable influence on its incomes from sponsors, media rights, and from other sources of revenue.

Situational Analysis.

The company was rather effective till 2005 with its conventional marketing methods, but quickly after 2005 the company begins facing various problems including decline of its fan base. A number of external in addition to internal elements are accountable for the decline. Internal aspects consist of; insufficient 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 create generational loyalty. The household system in America was changing resulting in decrease of impact of married male fan base over their youngsters. Together with it perceptions about cars and truck was also changing with perceiving automobile a car to reach at point B from point A, instead of as an enjoyable project. Other difficulties for Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution consists of the shift of its fans to other sports as they were improving their fan's experience allowing access to their broadcasts out of the houses through jumbo turns, Wi-Fi access, and so on. These all obstacles were tending the business to revise its marketing methods.

SWOT Analysis.


NASCAR core competencies includes it has rights of determining rules as sanctioning body. Policies and rules concerning professional stock cars and truck racing are dictated by NASCAR like if any team with needed skills and resources can enter into races by following guidelines and regulations determined by NASCAR. All the events of NASCAR are sponsored by corporates due to the fact that of biggest brand name commitment of fans towards brands advertised by Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis.

Weak points.

Weak Points in SWOT Analysis are thought about as external factors. 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 approach. They generally used to form guidelines and other required processes without intervention of others which leads to bad collaboration. For instance NASCAR develops Automobile of Tomorrow without collaboration so result is that chauffeurs did not like that concept. As this is racing sport so covering of sports by media is likewise tough. It was likewise discovered that NASCAR had no effective strategy for business communication. If it happened off track, they don't know how to deal with issue. Inadequate organisation communication leads to that they do not have clear instructions for their long term goals. They do not know that where they wish to see this sport in future.
Porter's 5 Forces Analysis

Opportunities in SWOT analysis are external elements which can be favourable to company or the external aspects on which company is having competitive advantage. NASCAR generally used to rely on standard media sources like local newspaper for publicity of its sports. Generally these standard media sources attempt to cover their house team and certain type of occasions. NASCAR likewise came to know from these standard media outlets that sport was challenging to cover. Media landscape also changed from standard to digital landscape. Papers went out of business. NASCAR can deal with its capabilities to get optimal possible take advantage of this 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 offered to Turner Sports. NASCAR used to get pay check of around $15 million yearly from Turner Sports. There are number of cons behind this offer. For instance Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help had to get approval from Turner Sport if it want to create its Facebook page, twitter account and even mobile application. Turner Sport also had rights of each and every single video which is shoot throughout race at track. Then they are required to pay licensing charges to Turner Sport, if media sources like newspapers, publications and cable television channels desire to post videos of races on their respective pages. NASCAR can work on terms and conditions and attempt to work out with Turner Sports to get optimal advantages of it. Star power plays extremely essential role in producing revenues from every sport. It was noted that NASCAR is lagging in this area i.e. star power. When sports fans were asked regarding popular celebs and stars then NASCAR chauffeur was not found even in top twenty reactions. NASCAR can put efforts in this area too for profits generation. They ought to direct their chauffeurs that how they can become sport stars. 4 strategic focuses which are generated by research study group can likewise be worked as chance for NESCAR. These four strategic focuses compares and analysis Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution strategies.


Economic down turn was experienced in late 2000 which can be risk for NASCAR since if there is financial down turn then people would be having less return on investment. Economic down turn likewise results in boost fuel prices which likewise impacted NASCAR. Now if NASCAR make considerable financial investments in new segments which are based on brand-new customers then it might face negative comments from its core fan base.

Porter's 5 Forces Analysis

It is essential to understand market in which business is working since NASCAR's bottom line i.e. net profit is heavily depends on this. There are 5 forces that are utilized to identify success, strength and beauty of NASCAR company.

Competitive Competition

These drivers can go versus NASCAR if they got much better opportunity in terms of rewards and television exposure. If audiences delight in other race vehicles and chauffeurs more than NASCAR then audiences can move to those other interesting cars and drivers. NASCAR might be having risk from its two direct competitors that is Solution 1 and Moto GP.
Swot Analysis
Supplier Power

If company shifts from one provider to another, the provider power shows the number of providers are available in market and what is the expense associated with supplier. Since motorists with required resources and skills are limited, in this industry there is supply monopoly.

Purchaser Power

This force is regarding to customers that is it simple for customers to move to other items. Then customers are less likely to switch, if there is more switching cost is associated. In the case of NASCAR customers are its audiences. Audiences can change to other competitors quickly due to the fact that audiences will having low changing cost.

Risk of Substitution

Replacements are referred as options. The alternatives in this case can be other entertainment indicates like viewers can shift to other sports. There are large variety of replacements are readily available in this situation which recommends that risk of substitute is high.

Hazard of New Entry

In the case of NASCAR danger of brand-new entry is low. They require to build automobiles and racing tracks and likewise requires to pay significant quantity to chauffeurs for changing.

PESTEL Analysis


It can not be concluded from case study that there would be modification in resource allowances. NASCAR had got gain from lower taxation policies which leads to increasing in earnings. They made heavy investments in the research study and advancement. As NASCAR is operating in numerous markets so it requires to deal with different regulations. It is also noted that Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help has dealt with increased analysis relating to regulatory. Every federal government has different top priority so NASCAR has to be gotten ready for it as top priority can be shifted to other sector.


Financial aspects includes tax rate, exchange rate, financial performance of that specific business, 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 utilize capabilities of workers to create new opportunities and enhance existing opportunities.


Every society is various from each other. Each has different social values and norms. It assists in comprehending concerning society and preference of consumers. Social aspects consists of customs, culture, attitudes towards particular services and products, demographics, norms, interests and so on. It can be concluded that advertising through other means instead of traditional (i.e. newspaper) can be chosen in this society.


Innovation has impact on nearly every service. It includes development in service technique. In this case of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution it can be kept in mind that companies are greatly spending for research study and advancement. NASCAR must likewise deal with its media rights policy with Turner Broadcasting System.

Vrio Analysis
Due to the fact that every nation has different legal terms and conditions, Legal plays a crucial function in every nation. Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help requires to be make certain that they safeguard their legal rights in every county so any company does not harm to its legal rights.


Ecological factors are also essential for every business. NASCAR needs to make sure that its vehicles are not creating contamination more than acceptable level.

7 P's of Marketing


The products of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution in its item portfolio are; racing events tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand, approving guidelines for races and ad-space to business online marketers throughout broadcast of NASCAR races. (Hanlon, 2018).


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


Advertising technique of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.


NASCAR have its racing tracks in numerous cities in United States. The most important tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Car Club Speedway in California and Darlington Raceway in South Carolina. It tries to conduct its races in most of the cities in United States to understand nationwide popularity.


Nestle individuals technique is comprised of providing much better experience to its audiences, its fan base and to all of its stakeholders. People are an essential element of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution A marketing strategy as its occasions are the source of home entertainment for crowd. Its individuals method includes efforts to supply much better experience to its Fans, Race Drivers, Team, Occasion Organizers etc., all of which come under individuals strategy of NASCAR.


Several service procedures are needed to carry out racing events in an efficient way. These processes consist of; correct schedule of time, arrangement for viewers, offering tickets, plan of space for sponsors, handling logistics and so on. These all processes contribute I building NASCAR image, enhancing viewers experience and increasing fan base.

Physical Proof.

Crucial physical proofs for the NASCAR consists of the presence of its racing tracks, stock vehicles and racing occasions. Together with it, its merchandising brands consisting of tee shirts, caps, goodies and so on, likewise serve as a physical evidence for NASCAR.

Product Life Cycle Evaluation.

The racing events by NASCAR was introduced on June 19, 1949. At the first phase competition for NASCAR was low, as the rivals drove the automobiles similar to the cars driven by regular people.


The very first NASCAR based track, namely the Darlington Raceway track, was initiated 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 decades, he changed NASCAR from a local Sport popular company into one with global fan base. He started a new period of profitable sponsorships and tv contracts for NASCAR.


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


The significant causes of decline consist of the financial crisis of 2008, which increased the expense of getting here at tracks for viewers due to increasing fuel prices, and the shifting of its fan base towards other sports.

Market Segmentation.

The marketplace segmentation of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Help can be divided into 4 segments; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).


The geographical segmentation of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Help 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 nations. The company 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 large geographical division provides the company regional as well as global fan base.


The demographic segmentation of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution is also highlydiverse based upon the gender, income and age of the customer. To increase the demographic segment of its market NASCAR must modify its marketing methods to attract more age groups and lower its rates to go into in the market segment with a low average earnings.


The psychological qualities of the majority of the fans are quite similar. NASCAR has a fan base with a loyalty. NASCAR fans view it compulsive to acquire tickets and see the races once in a week. 71% of them prefer to buy items with a NASCAR trademark name. They are rather extrovert and want to mingle with other fans while racing. They desire quality racing with low price at practical area. NASCAR has actually tried to increase the quality of its racing by introducing phase racing, they likewise have tried to lower rates and make the occasion more hassle-free by presenting live racing.


Behavioural division of NASCAR is based upon the behaviour of fans in terms of viewing the race live on the television or by going in the occasions. Currently, the fans choice is towards watching the race at house on television rather than going, as the consumer experience at NASCAR tracks is not beneficial as well as expensive.

Target Market.


One of the prospective target audience of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis was Hispanics; the young and growing population of United States. The market segment has fantastic possible for NASCAR as the population was growing at a greater rate and it was expected to end up being thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. Although, the sector reveals affinity with car culture, but require a more focused marketing towards welcoming the segment towards racing.


Kids are likewise one of the prospective target audience segment for NASCAR, as they are more connected socially than other groups. Producing fan base amongst kids can supply a possible boost in the number of fans for racing due to their connection. Kids invest the majority of their times in utilizing mobile phones and playing video games. Automobile racing video games developed by Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution can be a possible source of gaining attention of kids towards NASCAR track racing. Nevertheless, NASCAR's digital functions related to kids are not efficient in acquiring the attention. NASCAR needs more attention towards customizing and improving its digital functions to bring in the kids target audience.

This huge expenditure makes the sector potential for NASCAR marketing strategy of increasing its fan base. The market sector thinks about NASCAR as a company doing not have in creating a multiculturalism environment. NASCAR should take different steps to enhance the experience of Generation Y customers in its occasions.

5 C's of Marketing

5 C's of marketing assists in taking decisions relating to marketing. These 5 C's requirements to be analysed properly for taking any marketing choice. These 5 C's stands for Climate, Business, Collaborators, Consumers and Rivals.


It requires to make PESTLE analysis in order to understand environment or context in which NASCAR is working. PESTLE means political, financial, social, technical, legal and ecological and is specified above.


Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis is a car racing business with having USP of high quality vehicle racing with a worldwide structure. Its sector is sports team and occasions.


Collaborations includes suppliers, suppliers and alliances of NASCAR. NASCAR used to get pay check of around $15 million annually from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application.


The consumer of Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution are its viewers. They target consumers with having age of 15-60 years. 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.


Groups normally represents sponsors in NASCAR and the medium of advertising is motorists. These drivers can go against NASCAR if they got better chance in terms of rewards and tv direct exposure.

Marketing Methods.

1. Developing and Maintaining Facebook Page.
One of the possible target markets sectors for NASCAR is Hispanics which is the growing population section of U.S.A. however regrettably NASCAR had actually been unable to bring in the this targeted section. It ought to develop a Facebook page containing the details concerning the races and the locations of tracks to make the customer useful about the core operations of NASCAR.
2. Developing and Upgrading Accounts of Key Drivers.
Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Solution motorists has a low star power as compare to gamers of other sports. The poor contacts with fans result in less destination of viewers towards the racers and a low star power. Star power is a crucial element for drawing in audiences towards tracks and towards television.
3. Establishing New Games and enhancing present games for kids.
In order to attract these kids, NASCARA should enhance its existing racing video games by introducing personalization in the vehicles i.e. changing colours, selection of speed, introducing group racing in the game, utilizing much better graphics related to the racing tracks and presenting different levels in the game. All these adjustments in the existing game would provide better experience to kids.
Along with it, NASCAR should also build new video games connected to racing like kids racing with kids characters as motorists, animation racing with racing between different animation characters with an option of selecting the favourite cartoon character for the kids. These methods would allow the company to bring in one of its prospective target sections.
4. Presenting multiculturalism at occasions.
NASCAR events are made up of fans with very couple of cultural variety, due to expense of arrival in events, making it unsightly for the customers perceiving sport occasions as social celebrations i.e. Generation Y clients. As the Generation Y consumers are a potential target market for NASCAR, for that reason the company ought to take certain steps to attract this prospective target market.
5. Improving Customer Experience at Tracks.
NASCAR must work on infrastructure and facilities at tracks because on the race day viewers got dissatisfied. Viewers have numerous expectations from Time Warner Vs The Walt Disney Co A Pulling The Plug Case Study Analysis due to the fact that in very same industry other companies are offering much better services than NASCAR. IF NASCAR do not work on this problem then its fans may moved to its competitors.

Marketing Spending plan

Marketing spending plan made on the basis of the above strategies for the duration of 5 years from 2011 to 2015, reveals the cost related information for the marketing strategies. (See Appendix B). It can be seen that method 5 of improving consumer experience at tracks would require greatest initial investment and cost and strategy 4 of introducing multiculturalism will require least expensive preliminary investment with most affordable even more annually cost. The company ought to focus on the resource allotment on these methods on the basis of its available resources and the prospective benefits which the technique would provide.
NOTE: The values about expense are assumed on logical basis due the absence of truths 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 external and internal elements of Time Warner Vs The Walt Disney Co A Pulling The Plug 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 term. These methods would handle internal factors like bad client experience at tracks, insufficient social networks marketing, incapable digital medias like video games, lack of culturalisms at tracks etc., in addition to with external aspects like shifting of fans towards other sports, demographical changes in America and changing family life styles.