9. Bowman´s Strategy Clock (Mass Market) Mass Market -> The customers are the supporters Match Tickets, and Merchandising are more expensive than the market average because of the importance of the team and because of the brand strenght 2010
10. Bowman´s Strategy Clock (Business Market) In business market the customers are the sponsors and the medias. The value associated to Manchester United ability to convey emotions and strong message is quite high. Because of this ability to bind fans emotionally the price is higher than average since this adds additional value to marketing through Manchester United. 2010
11. Bowman´s Strategy Clock (Other Teams) Business Market for Other Soccer Teams : The positioning in Strategy Clock depends on the management´s skill, and on the team’s importance in term of fan base and in term of national and international relevance. Manchester United: 19 mln £ / Season Chelsea F.c. : 11 mln £ / Season Liverpool F.c. : 7 mln £ / Season 2010
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16. Strategy Development Manchester United´s market environment is complex and costantly changing. There are tests which show that, for the listed teams, field results week after week affect the trend of the stock . When a company works in such an uncertain field, they can stabilize their revenues with investments in more stable and safe businesses. 2010
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Editor's Notes
Hello everybody. In our group there are 4 people: Giulio, Aku, Karim and Aino. As you can see we will talk about Manchester United. We are just 2 because the work was so hard that the other 2 people are dead.
We can divide the customers of Manchester United in 2 categories: Supporters (Mass Market) and Sponsors&Media (Business Market). The different features of the 2 categories are: Numerosity that is big in Mass Markets and small in Business Markets. The first ones are emotional and very loyal and the latter are rationals in decisions making and self-seeking.
Even though the mass markets are highly differentiated they’re still easy to sell to. The business markets on the other hand are highly concentrated but the selling process is complex. The business customers require a high-profile performance so the pricing is based on analysis. The mass marketing requires involvement and the customer base is wide so the pricing is differentiated.
Our swot analysis says that their main strenghts are a strong brand with appeal beyond traditional football market, a sizable and loyal international and rational fan base and attraction for media advertisers. Their main weaknesses are that they usually have a negative transfer balance, their significant wage bill and a significant assets base that needs qualified management
The opportunities are the domination of the international market due to winner takes all principle , the development of non-traditional incomes and leverage from media coverage and star players fame. Instead the threats could be the further growth of the transfer market and wages and decreasing success on the field.
Manchester United is influenced by competitors who are the other big teams, by suppliers that are the players and the other teams, by costumers which consist of fans, media and sponsors, by new entrants that can be lower level teams becoming bigger, by substitute products which can be all other type of shows or sports.
Pestel Analysis says us that political factors are Security issues inside and outside the stadium, VAT and the amount of income tax. The economic factors are the economic cycles which affect marketing spenditure. Social factors are about the aging of players, the attitude to work and pleasure and preference to other sports.
From the technological point of view we should consider Better internet utilisation, developing Mobile commerce, Gambling and Broadcasting. From the environmental point of view we should consider zero emission stadiums. And from the legal point of view player nationality restrictions, the employment law and FA rules.
We did clocks for both the mass and the business markets. In the mass markets the customers are the supporters. Uniteds tickets and merchandise are more expensive than the market average because of the importance of the team and because of the brand strenght.
In business market the customers are the sponsors and the medias. The value associated to Manchester United ability to convey emotions and a strong message is quite high. Because of this ability to bind fans emotionally the price is higher than average since this adds additional value to marketing through Manchester United.
In the business market clock for other teams The positioning in the Strategy Clock depends on the management´s skill, and on the team’s importance in term of fan base and in term of national and international relevance.
Market penetration for the Manchester United can be gained in one way. By hiring better players or coaches and winning more games. This will lead to new fans especially in the long run and more fans means increased market value. Therefore better players or coaching directly increases their revenue from sponsorships as well as increasing gains from tickets and merchandise.
Manchester United and soccer in general has great potential for expansion into many countries outside its usual territory. Global marketing and stadium ownership along with their shopping malls could increase Uniteds fanbase to unseen numbers. Also soccer still is mainly a sport for men, so with better marketing United could dip into the unreached female fans.
Gambling is closely related to sports so they could start building casinos near their stadiums. In addition to their loans and credit cards which you can already get in the UK they could delve deeper into financing by starting their own banking services. They could also expand their TV channel and broadcast a more versatile set of programmes.
All the examples shown in the product development section could also be applied here, since they would certainly reach new customers. But I already talked a bit about the female fans so what’s a better way to reach them than fashion. And why play soccer? There are many sports that could use a strong brand such as Manchester United.
Manchester United´s market environment is complex and costantly changing. There are tests which show that, for the listed teams, field results week after week affect the trend of the stock . When a company works in such an uncertain field, they can stabilize their revenues with investments in more stable and safe businesses.
When the environment is complex and dynamic, experience and learning is the most important way to approach strategy development. Their previous experiences in the field of soccer might be one of the reasons Manchester United has already invested in businesses outside their main field.
Scenario planning can also be used to prepare for future changes on the field. They can set up scenarios for both positive and negative changes and be ready to face both. The management and the organisation also need to be dynamic in order to respond quickly.
Their Intended strategy has been to Diversificate to reduce risks, Stay on the top of soccer and Maintain the fanbase. The Emergent Strategy is affected by Sport results and the Economic cycle. The Unrealised strategy is that they haven’t been able to keep all of their fans. Realised Strategy has been Continuing the diversification and succeeding in soccer. The economic crisis cut down their sponsorship revenues.
In a conclusion Manchester United has to maintain a strategic line that stabilizes their revenues and supports future growth as a team and a company. Their current professional management helps them to achieve this. Thank you for listening!
![Manchester United ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],2010](https://image.slidesharecdn.com/finalversionstrategicmanagementgoodone2-110212103708-phpapp02/85/Final-version-strategic_management_good_one-2-1-320.jpg)
