Manchester United - The Glazer take over

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  • Sponsors AIG - Official kit sponsor Nike - Official kit manufacturer AirAsia - Official airline Audi - Official automobile and dugout seat provider Betfred - Official gambling partner Budweiser - Official beer Tourism Malaysia
  • Branding Manchester United has created a strong brand name associated with performance and rich tradition. It is really easy to recognize the club thanks to its colours (red and white) and its logo. Thus, the team can use its brand name in order to sell one core product “football” through several products (jerseys, credit cards and so on). Moreover, there is also one more competency which is not a “core” core competency that cannot be disregarded: Merchandising Apart from being a good soccer team, Manchester is also a powerful commercial organization that differentiates themselves from other famous football clubs and provides them a competitive advantage. For instance, if we compare Manchester United to the famous Spanish football club “El Real de Madrid”, we can notice that both have the same core “core competencies” that is why they compete each other. However, the difference is made by Manchester Unitied’s capability to generate alternative cash flow thanks to the sale of merchandises which are very diverse. Finally, Manchester United’s core competencies are the consequences of key resources used together in order to create value for the organization. Thus, resources such as Star players and other activities that create cash flows...
  • Manchester United - The Glazer take over

    1. 1. MANCHESTER UNITED: THE GLAZER TAKEOVER Complied By: Mehak Kohli SMBA 08116 Praful Anchaliya SMBA 08155 Rohit Jain SMBA 08189 Sheetal Vishnoi SMBA 08216
    2. 2. INTRODUCTION <ul><li>The world’s no.1 football club – Founded in 1878 </li></ul><ul><li>Global fan base – Manchester United has 333 </li></ul><ul><li>million fans worldwide </li></ul><ul><li>190 million fans alone from Asia </li></ul><ul><li>Manchester United is a household name across the world </li></ul>
    3. 3. INTRODUCTION ( Cont.) <ul><li>Manchester United is synonymous with success and leadership </li></ul><ul><li>Winners of 3 European Club Championships, 18 English League titles and 11 FA Cup titles – more than any other team. </li></ul><ul><li>Brand Values: Successful – In Control – Passionate – Adventurous – Quality </li></ul><ul><li>Manchester United – a truly global sports brand! </li></ul>
    4. 4. VISION <ul><li>U nited </li></ul><ul><ul><li>… committed passion for success </li></ul></ul><ul><li>N on-discriminatory </li></ul><ul><ul><li>… accessible to all </li></ul></ul><ul><li>I nnovative </li></ul><ul><ul><li>… to be ‘first to the ball’ at all times </li></ul></ul><ul><li>T eam oriented </li></ul><ul><li>… working together with dedication </li></ul><ul><li>E xcelling </li></ul><ul><ul><li>… to be the world-class leader </li></ul></ul><ul><li>D etermined </li></ul><ul><ul><li>… in pursuit of success whilst being accountable </li></ul></ul>
    5. 5. MAN UTD DELIVERS <ul><li>Global Reach </li></ul><ul><li>Continuity </li></ul><ul><li>Visibility </li></ul><ul><li>Recognition </li></ul><ul><li>Trust </li></ul><ul><li>Respect </li></ul><ul><li>Brand Consciousness </li></ul><ul><li>Propensity to buy </li></ul>
    6. 6. ACTIVITIES AND CORPORATE STRUCTURE
    7. 7. REVENUE GENERATION <ul><li>Match day (29%) </li></ul><ul><ul><li>Domestic League and Cup Tickets </li></ul></ul><ul><ul><li>European Match Tickets </li></ul></ul><ul><ul><li>Travel, Programmes, Catering and Hospitality </li></ul></ul><ul><li>Broadcasting and Media (44%) </li></ul><ul><ul><li>TV deals for Domestic Matches </li></ul></ul><ul><ul><li>TV deals for European Games </li></ul></ul><ul><ul><li>TV rights Worldwide </li></ul></ul><ul><li>Sponsorship and Commercial (27%) </li></ul><ul><ul><li>Sponsorships </li></ul></ul><ul><ul><li>Non Matchday Activities (Catering Tours) </li></ul></ul><ul><ul><li>Branded Products </li></ul></ul><ul><ul><li>Other Activities (Finance, Betting) </li></ul></ul>
    8. 8. FINANCIAL ANALYSIS Turnover breakdown 129.6 146.1 2000 2003 Turnover £m 2001 2002 2005 116.0 173.0 157.1 2002 33.8 55.1 Operating Profit £m 2000 2003 2001 2005 46.1 36.1 40.0
    9. 9. INDUSTRIAL ANALYSIS The Paradigm Environmental Forces – PESTEL Analysis Organisational Capabilities – Internal Analysis Strategy Performance
    10. 10. PARADIGM
    11. 11. INTERNAL ANALYSIS <ul><li>Resources and </li></ul><ul><li>Capabilities </li></ul><ul><li>Tangible </li></ul><ul><li>Intangible </li></ul><ul><li>Brand Equity </li></ul>Core Competencies Competitive Advantage Above-Average Returns
    12. 12. RESOURCES <ul><li>Intangible Resources Tangible Resources </li></ul><ul><li>Structural Assets Old Trafford Stadium </li></ul><ul><ul><li>EPOS Equipments </li></ul></ul><ul><ul><li>Club Vision, Culture and Goals Manchester United Soccer Academy </li></ul></ul><ul><ul><li>Managerial systems </li></ul></ul><ul><li>Relational Assets </li></ul><ul><ul><li>Club fans and Club image </li></ul></ul><ul><ul><li>Season ticket sales </li></ul></ul><ul><ul><li>Sponsorship and Supporters </li></ul></ul><ul><ul><li>Promotion </li></ul></ul><ul><ul><li>Brand </li></ul></ul><ul><li>Human Assets </li></ul><ul><ul><li>Expertise of football m anagers </li></ul></ul><ul><ul><li>Expertise of players </li></ul></ul><ul><li>Intellectual Property </li></ul><ul><ul><li>Broadcasting right s </li></ul></ul>
    13. 13. CORE COMPETENCIES
    14. 14. COMPETITIVE ADVANTAGE <ul><li>Strong Leadership – Sir Alex Ferguson </li></ul><ul><li>Leaders in promoting and exploiting brands </li></ul><ul><ul><ul><li>Media </li></ul></ul></ul><ul><ul><ul><li>Players </li></ul></ul></ul><ul><ul><ul><li>Supporters( Independent Manchester United Supporters Association, Manchester United Supporters' Trust, Red Army) </li></ul></ul></ul><ul><li>Leader in Internationalization </li></ul><ul><li>Massive Fan Base </li></ul>
    15. 15. FERGUSON’S TRACK RECORD
    16. 16. PESTEL ANALYSIS
    17. 17. VALUE CHAIN ANALYSIS SERVICE Customer Service Website <ul><li>MARKETING </li></ul><ul><li>AND SALES </li></ul><ul><li>Sponsorship </li></ul><ul><li>TV Deals </li></ul><ul><li>Endorsements </li></ul>OUTBOUND LOGISTICS - Football Branding - NIKE Shirt Deal - Season Tickets <ul><li>OPERATIONS </li></ul><ul><li>MU-Mobile </li></ul><ul><li>MU Finance </li></ul><ul><li>Man U </li></ul><ul><li>TV </li></ul>INBOUND LOGISTICS Transfers of players Players & Coaching Staff PROCUREMENT Theatre of Dreams INFRASTRUCTURE <ul><li>Alex Ferguson </li></ul><ul><li>- Bonus </li></ul><ul><li>System </li></ul>HUMAN RESOURCE MANAGEMENT Margin Margin
    18. 18. BRAND STRENGTH <ul><li>Domestic </li></ul><ul><ul><li>Merchandising presence at other football clubs </li></ul></ul><ul><ul><li>Established presence in London stores </li></ul></ul><ul><li>International </li></ul><ul><ul><li>Seeking new opportunities in the Far East and North America </li></ul></ul><ul><ul><li>Deals signed with NY Yankees and NJ Jets </li></ul></ul><ul><ul><li>Marketing deal signed with Nike </li></ul></ul><ul><li>Media partnerships </li></ul><ul><ul><li>PayTV revenue with MUTV </li></ul></ul><ul><ul><li>Internet presence enhanced and ecommerce enabled </li></ul></ul><ul><ul><li>Personalised content delivered direct to fans </li></ul></ul>
    19. 19. EUROPEAN/CHAMPIONS LEAGUE
    20. 20. BRAND RANKING(2009)
    21. 21. COMPETITOR ANALYSIS <ul><li>Competitors not fully in balance </li></ul><ul><ul><li>Man U ahead in its services/products available to the buyers </li></ul></ul><ul><li>Some of the products at a mature stage of the product life cycle </li></ul><ul><ul><li>New products/services being introduced to revitalise its market growth </li></ul></ul><ul><li>Man U reaching out to other parts of the world </li></ul><ul><ul><li>Rivals have little or no contact </li></ul></ul><ul><ul><li>Man U dominates the market at those destinations </li></ul></ul><ul><ul><li>Man U differentiates into the US market as well as international tours within Asia </li></ul></ul>
    22. 23. CHALLENGE <ul><li>Whether Glazer could do anything to enhance Man United’s performance, either financially or on field??? </li></ul>
    23. 24. RECOMMENDATIONS <ul><li>Reduce Spending </li></ul><ul><ul><ul><li>Reduction in player’s fixed salaries </li></ul></ul></ul><ul><li>Increase Income </li></ul><ul><ul><ul><li>Increase price of season tickets </li></ul></ul></ul><ul><ul><ul><li>Renewal of sponsorship contracts </li></ul></ul></ul><ul><ul><ul><li>Enable them to allow more funds for transfers, and therefore win more competitions. </li></ul></ul></ul><ul><ul><ul><li>Appearance of team’s goals on users screens </li></ul></ul></ul><ul><ul><ul><li>Create higher level of enthusiasm(organization and fan base) </li></ul></ul></ul><ul><ul><ul><li>Income from property assets </li></ul></ul></ul><ul><ul><ul><li>Increase Affiliated Supporters(1/3 rd from gate at matches, another 1/3 rd from TV and remaining 1/3rd from marketing) </li></ul></ul></ul><ul><li>Refinance Debt </li></ul>
    24. 25. STRATEGIC RECOMMENDATION – DEBT RECOVERY
    25. 26. RECOMMENDATIONS (CONT.) <ul><li>Creating clear objective </li></ul><ul><li>In-depth organizational change </li></ul><ul><li>Maintaining aggressive attitude </li></ul><ul><li>Converting more fans to customers </li></ul><ul><li>Maintain the playing success </li></ul><ul><li>Leveraging the global brand </li></ul>
    26. 27. THANK YOU!!!

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