Table of Contents
Executive Summary 2 ..........................................................................................
Introduction 4 ..................................................................................................
ESPN Mission 4 .................................................................................................
Vision 5 .........................................................................................................
Goals and Objectives 5 ........................................................................................
Strategic Planning for Competitive Advantage 6 ..........................................................
Competitive Advantage through Technology 7 .............................................................
Proposed Strategy 14 ..........................................................................................
Conclusion 15 ...................................................................................................
References 16...................................................................................................
Executive Summary
ESPN is focused on improving its position as the head sports channel in the digital world
by conveying a better quality programs to its viewers, members, and publicists. Viewers are the
most important asset at ESPN. ESPN strategy comprises of policy, exercises, and campaigns that
guarantee gathering characterized business objectives furthermore targets. ESPN was a pioneer
in sports television that environment and for three decades saw a steady growth in subscriptions
to cable and satellite TV. ESPN's solution is to allow only people who are subscribed to channels
payments to access the streaming of matches which are also issued by TV.
While the application is distributed via the internet, ESPN raises money through
providers of cable and satellite TV who pay for the right to offer their customers the application.
The Watch ESPN app also includes a channel strictly on the web, called ESPN, which is also
available on ESPN Play in US. ESPN President John Skipper refers to the loss of subscribers in
the US "marginal" because the sports channel reaches 99.7 million households in the country. So
for ESPN, acquire these rights is becoming increasingly expensive. In turn, you will probably
pay television providers resist as ESPN raises their prices to offer Watch ESPN. ESPN is the
most expensive US cable channel.
In addition, ESPN's decision to limit access to online only for TV subscribers, a strategy
developed by the majority of owners of television, carries risks. That raises the question of what
is the long term goal of ESPN. The sports channel ESPN is putting in front their best of the ideas
and best strategies with respect to the games which are being aired on the channel. The
association of ESPN is having a number of TV dialects and TV channels for vari ...
2. References
16...........................................................................................
........
Executive Summary
ESPN is focused on improving its position as the head sports
channel in the digital world
by conveying a better quality programs to its viewers, members,
and publicists. Viewers are the
most important asset at ESPN. ESPN strategy comprises of
policy, exercises, and campaigns that
guarantee gathering characterized business objectives
furthermore targets. ESPN was a pioneer
in sports television that environment and for three decades saw
a steady growth in subscriptions
to cable and satellite TV. ESPN's solution is to allow only
people who are subscribed to channels
payments to access the streaming of matches which are also
issued by TV.
While the application is distributed via the internet, ESPN
raises money through
providers of cable and satellite TV who pay for the right to
offer their customers the application.
3. The Watch ESPN app also includes a channel strictly on the
web, called ESPN, which is also
available on ESPN Play in US. ESPN President John Skipper
refers to the loss of subscribers in
the US "marginal" because the sports channel reaches 99.7
million households in the country. So
for ESPN, acquire these rights is becoming increasingly
expensive. In turn, you will probably
pay television providers resist as ESPN raises their prices to
offer Watch ESPN. ESPN is the
most expensive US cable channel.
In addition, ESPN's decision to limit access to online only for
TV subscribers, a strategy
developed by the majority of owners of television, carries risks.
That raises the question of what
is the long term goal of ESPN. The sports channel ESPN is
putting in front their best of the ideas
and best strategies with respect to the games which are being
aired on the channel. The
association of ESPN is having a number of TV dialects and TV
channels for various sorts of
clients. The channel association is also having their golf school,
physical and virtual stores,
4. ESPN clothing and rigging, ESPN restaurant and online dream
recreation. The channels ESPN
also enjoys solid brand persona.
ESPN is still capturing a huge market share and is also holding
a strong position in the
market because of its current model and the power full
strategies deployed at the channel.
Benchmarking; by using this tool, ESPN continues to dominate
in the market before the
competition in action with his project, ESPN already has
implemented.
Introduction
The formulation of a sustainable strategic analysis of any firm
based on the mission of
the firm. There are as numerous missions, or purposes, for
media and web organizations as there
different firms and companies operating in the same domain.
The main essence of the mission
for the firms is only to make a profit out of it. However, for
numerous firms, the organizational
mission is that, which puts the desires of shareholders, or
proprietors first. Whereas, there are
5. firms whose mission principally based on to serve the society
(Kian, et. al., 2009, pp. 477-95).
Numerous organizations have missions that give out different
stakeholders: viewers, workers,
society, clients, and shareholders.
ESPN Mission
In this perspective ESPN's mission statement is a great example
of mission that focuses
on different stakeholders of the organization as it stated out to
be; ESPN is focused on
improving its position as the head sports channel in the digital
world by conveying a better
quality programs to its viewers, members, and publicists. The
channel look for to pull in and
hold the most gifted individuals by encouraging a situation for
them to flourish in their work
endeavors as they add to the finest sports program appropriation
framework for both local and
global markets.
Viewers are the most important asset at ESPN. They focus of
organization is to treat each
employee with deference and nobility. We attempt to help and
prize our employees for their
6. endeavors furthermore we will make every effort to make ESPN
a caring organization, aware of
each worker's individual and expert needs (Martzke & Cherner,
2015).
Our prosperity based on the people who are part of this
prestigious organization and our focus is
on building teams. Thus, to keep and maintaining our prosperity
and upper hand, the
organization culture is designed in a way the employees must
communicate in an open
environment with honesty and transparency. Similarly,
transforming the culture in a way where
employees are ready to help subordinates and energetically help
the group building exertion.
Vision
From the initial stage, aggressive mind set with positive
thinking and ability to take the
risk is the core objective of ESPN and that is initial step
towards our success. We should always
hone and urge these traits to protect our expectations. We
should not hesitate to discourage the
situations that are contradicting to organizational goals and
7. objectives (Hampp, 2009).
Goals and Objectives
An organization's main goal decides its objectives and
destinations. On the off chance
that its main goal was just to make a benefit, then it would
consider just long haul objectives and
fleeting targets that help specifically to how everything adds up.
On the off chance that there
were various stakeholders in an organization's central goal, then
various objectives and goals
would be vital. Case in point, ESPN may set yearly
programming (evaluations and offer) goals,
advancement destinations (new programming), representative
improvement targets (cooperation
preparing), group administration goals, clients administration
destinations, and income and
benefit targets.
Strategic Planning for Competitive Advantage
ESPN strategy comprises of policy, exercises, and campaigns
that guarantee gathering
characterized business objectives furthermore targets. Strategy
can likewise be characterized as a
8. source of distinguishing competence.
In an article by Porter in the Harvard Business Review, which
titled as ‘What is
Strategy?’, the author highlighted that Operational effectiveness
based on performing
comparative exercises better than opponents. However,
Operational effectiveness mainly based
on the efficiency but it just not restricted to it. Its main purpose
is to use any of the strategies that
assist the management in utilizing its resources in an effective
and efficient manner, for instance
minimizing the defects in manufacturing products or
formulating excellent products on a faster
pace. Similarly, from strategic point of view, strategic
positioning is all about to perform
different and better from your competitors or performing the
same activities but in a different
innovative way.
In this way, the strategy is all about to carry out the activities in
a different way and that
ESPN is doing and the same this Porter stated in the above
mentioned article that an organization
can beat adversaries just in the event that it can build a
9. distinction that it can preserve (Rosen &
Wilson, 2007, pp. 1-17). Along these lines, media houses like
ESPN must understand the tactics
of competitors that how they are prompting and marketing there
selves in the viewers mind.
Thus, ESPN is formalizing and drafting their strategies in a
unique way that add value to their
channel and at the same time cannot be replicate by the
competitors.
Competitive Advantage through Technology
The application, called WatchESPN US Play is part of
ambitious bet sports network
online services under mature pay TV. ESPN was a pioneer in
sports television that environment
and for three decades saw a steady growth in subscriptions to
cable and satellite TV. However,
these seem to be shrinking US. The chain is now at the forefront
of efforts by the television
industry to grow toward internet distribution.
The company, which generates 40% of operating earnings from
its majority owner, Walt
Disney Co. DIS + 7.63% , Watch ESPN seen as a way to
10. leverage the increased demand for
online video. But since their TV deals are still very lucrative,
he is walking a tightrope, trying to
avoid doing anything that would encourage customers’ cable TV
to cancel their subscriptions. It
is a challenge to other companies in the business of pay-TV
face. ESPN's solution is to allow
only people who are subscribed to channels payments to access
the streaming of matches which
are also issued by TV (Cavusoglu, et. al., 2011, pp. 1342-63).
To this end, it has developed a complex business model. While
the application is
distributed via the internet, ESPN raises money providers cable
and satellite TV who pay for the
right to offer their customers the application. A second source
of income for the chain is
advertising on the online service. The Watch ESPN app also
includes a channel strictly on the
web, called ESPNU, which is also available on ESPN Play in
US. For US signal, the channel
specializing in less popular sports likes rugby, polo and
athletics college level. ESPN also
provides European Champions League, Italian football and the
Indianapolis 500, among others.
11. In most markets, users do not have to pay a subscription for
viewing.
This dual strategy is the result of years of experimentation and
debate within ESPN, and
within the industry in general, on how best to address the
growing demand for online video and
saturation of the pay television industry. For example, the HBO
channel, Time Warner Inc. TWX
-0.24% has been suggested that could offer a version of its HBO
Go app to Internet users for a
fee, depending on the evolution of pay television, although for
now plans to continue limiting
access to those who already have a subscription to your TV
channel.
Most owners of television networks have concluded that the
risk of cannibalizing their
business by offering pay TV subscription services online are too
large. It is not clear that they
can charge a price high enough to be as profitable as agreements
with providers of cable
television. Mobile advertising rates are generally much lower
than those of traditional television.
12. Media companies also have to take responsibility for customer
service which is curently handled
by cable and satellite providers.
However, content providers such as ESPN face the reality that
the number of households
that pay for TV service has begun to decline in the US, analysts
say. Between September 2011
and September 2013, ESPN lost about 1.5 million subscribers,
according to Nielsen data
supplied by the chain. According to market research firm
Dataxi, the number of pay TV
subscribers in the region will reach 98.32 million in the seven
major markets, 3.6 times more
subscribers in 2008 (Zhu, et. al., 2009, pp. 49-67).
ESPN President John Skipper refers to the loss of subscribers in
the US "marginal"
because the sports channel reaches 99.7 million households in
the country. Still, Skipper does not
underestimate the threat. "The pressure on the system represents
a danger to ESPN"; said in an
interview. "But as long as the system is not broken, ESPN is in
a good position," he added.
13. However, several obstacles stand in the way ESPN online.
Professional sports leagues, which
already collected large sums for broadcasting rights, see a great
opportunity in the next decade to
sell their digital rights or offer games via their own streaming
services. So for ESPN, acquire
these rights is becoming increasingly expensive. In turn, you
will probably pay television
providers resist as ESPN raises their prices to offer Watch
ESPN. ESPN is the most expensive
US cable channel.
In addition, ESPN's decision to limit access online only pays
TV subscribers, a strategy
developed by the majority of owners of television, carries risks.
Besides those who have
unsubscribed television, also excludes those who have never
subscribed to a pay TV cable or
satellite service (Pedersen, et. al., 2009, pp. 17-34). And if
operators pay television subscribers
pass the fee charged by ESPN them, that higher costs could
cause more disconnections pay TV
service. Some executives of American television providers
claim that the rise in prices is one of
the main reasons why people cancel their services. Skipper, who
14. took the reins of ESPN in 2012,
acknowledged that there is some "dissonance" between the
instincts of ESPN to disseminate
their content to the maximum extent possible and use
restrictions designed to protect your
principal pay television business. "We're not denying that there
is a certain element of protection
and defense," he said. But he said the company cannot afford to
risk the huge profits that pay
television harvest.
That raises the question of what is the long term goal of ESPN.
Skipper said the company
plans to experiment a lot, but nothing that could reduce earnings
per pay TV. "Our estimate right
now is that we will navigate this," he said. "We will insist on
this as it makes sense" (Keller, et.
al., 2011).
ESPN Internal and External Analysis
To understand the inner and the outer environment of the sports
channel, the contender
investigation, PEST examination and the client investigation
will be used so that the channel
15. ESPN could be in a position to analyze their methodologies and
their implemented strategies to
reap higher profits and so that they could also limit their
expenses.
The process of reexamination is mainly done so that the channel
could figure out the strategies
and the plans which are implemented in the organization and are
providing fruitful results and
also to pull away the failing strategies which are not providing
any type of benefits to the
organization at all.
Internal Analysis- Strengths
The sports channel ESPN is putting in front their best of the
ideas and best strategies with
respect to the games which are being aired on the channel. It is
mainly noticeable that the sports
are highly significant to any of the society and are loved by a
huge number of masses. In today’s
era it is also witnessed the general public are also very much
interested in getting the data and
analysis of a number of games and to get the current
information of the players, tier alliances and
different occasions of gamming. The association of ESPN is
16. having a number of TV dialects and
TV channels for various sorts of clients. The channel
association is also having their golf school,
physical and virtual stores, ESPN clothing and rigging, ESPN
restaurant and online dream
recreation. The channels ESPN also enjoys solid brand persona.
Weaknesses
The biggest weakness of the sports channel ESPN is this that it
was not playing
influential and powerful. Most of the time it happened that the
channel was unable to get the
rights of some of the most important matches of cricket, tennis
and soccer which turned out to
decrease its viewership in the most peak season and also greatly
damaged the fame and
reputation of the channel. This move also helped the long list of
the contenders of the channel to
get famous and disrepute of the channel. In addition to this, the
ESPN loyal viewers changed to
number of different channels so that they could appreciate the
extensive variety of the
amusements and the projects. The huge excess of the items has
17. also greatly influenced the wide
results of ESPN at the specific focuses.
External Analysis
Competitors Analysis
The major competitors of the channel are mainly utilizing the
various propelled
techniques so that they could stay relevant. As ESPN has
mainly not changed any of the part of
the way it approaches masses, this could also influence the
disrepute of the strong brand in the
long run. The par should also be considered that being a famous
sports channel ESPN is still
capturing a huge market share and is also holding a highly
strong position in the market because
of its current model and the power full strategies deployed at
the channel.
Customers Analysis
The highly powerful channel base of ESPN has very well
demonstrated it highly strong
position and its huge marker share which is mainly because of
its large number of clients. The
18. main elements which have made strong the viewership of the
channel are the brand distinguish
and the reliability of its huge clientele. It has also been
observed that some of the clients of the
channel have actually gripped that the channel ESPN is
providing scope to only a few number of
diversions which can basically influence the growth and the
advancement of the channel and can
also come up as a source which can negatively affect the
reputation of the channel. Because of
this particular reason the channel could be at stake that it can
lose it viewership and can also have
a negative word of mouth.
PEST Analysis
Political factors
The lawful and the political environment which is currently
prevalent in the country of
the United States is considered to be highly strong and solid and
the channel ESPN can compose
and work out all of its operations very securely and also in a
free manner in the USA. The
various political components are also acting as one of the
opportunity for the channel ESPN
19. association so that it can also serve as a helping hand in
growing their access and their various
item to different locations of the globe. it is also to be
considered that as the channel is having
smooth and clean operations so there will be no high political
regularities which would be bind
over the channel.
Economic factors
The Financial states of the US are solid, while the clients that
are subscribing to the
ESPN items are monetarily solid and stable. The proof of their
great monetary condition is that
they have consented to pay a higher cost when contrasted with
different game systems. The
general economy of the business and the world is solid. So it
can be said that the channel is
having a highly strong financial position in the world of sports
channel which can actually
support its operation in a highly positive manner.
Social factors
The clients of the ESPN are likewise eager to watch more
mixtures of the ESPN's items.
20. This represents a solid open door for the ESPN to draw in more
clients by gathering their unique
needs. By catering the different needs of the clients it can be
said that the channel would be
acquiring more eye balls and more loyal viewership.
Technological factors
On one hand, it’s got to be troublesome for them to build the
quantities of their supporters
on the grounds that in numerous districts individuals want to
watch their most loved games on
the web. Then again, the simple access of the Internet permitted
different national and global
channels to enliven viewers around the globe, particularly in
those nations where they are
authoritatively not introduce. In such a way, engineering is
going about as both open door and
risk for which ESPN needs to accelerate its innovative work
methodology to endeavor
opportunities here.
Proposed Strategy
On the basis of the above analysis, the author comes up with
21. following mentioned
strategy through which the channel can even further distinguish
itself in the sports world;
• Freedom and Agility; if ESPN want to stay ahead of the
market have to move fast and
move well. There are other players who are moving and seek
move your position.
Generate new ideas and put them into action is an everyday
task.
• Benchmarking; by using this tool, ESPN continues to
dominate in the market before the
competition in action with his project, ESPN already has
implemented. Your audience
knows he can tune ESPN because there you will find the best in
the industry with a fresh,
sharp content. Sit back and enjoy because hard work, ESPN has
already done for you.
Give your organization like a star to remain agile and the edge
of modernity.
• About the brand identity; ESPN wants to convey a sporty,
youthful style, with energy,
vitality. ESPN can be explained in four words: passion for
sport. "Know your brand.
ESPN sees itself as the world's biggest sports fan and maintains
22. its live programming
without taking seriously. Make sure the brand maintain a clear
and consistent message in
all its risky business.
• Culture of Inclusion; the best thing about the channel is that it
can stand behind and let
managers can create and the results accompany such action,
ESPN subscription has gone
from selling a million copies to nearly two million since 1999.
• Who dares, wins; ESPN was created in style since its
inception. In 1979, Bill Rasmussen
started the company with $ 9,000 from credit cards. At that
time, only transmitting
Connecticut college games using satellite antennas.
• Bring The Product to your Customer; ESPN no longer only
addresses the viewer found on
the couch watching television. ESPN aims to be your partner
did a few hours, but
throughout the day by engaging applications on the mobile
phone.
Conclusion
23. In a nut shell, ESPN is currently performing as per their
strategy and objectives that
established by the organization because the channel with
diversified nature of business and
utilizing the technology not only beneficial in terms of profit
but also providing easy access to
viewers. Similarly, the approach of the management in
overcoming the defects and transforming
their strategies different from the competitors are performing
appropriate in global market, the
only thing is that they need to keep on working hard to present
innovative products to their
consumers so that they did not feel that the channel is done with
innovation.
References
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importance of internet usage as new
media tool in the studies of sports marketing:“Analysis of sports
clubs’ websites in
Turkey and England”. International Journal of Human Sciences,
8(1), 1342-1363.
Hampp, A. (2009). How ESPN Became the World's Biggest
Sports-Media Brand. [online]
24. Adage.com. Available at: http://adage.com/article/media/espn-
world-s-biggest-sports-
media-brand/138711/ [Accessed 31 Jan. 2015].
Keller, K. L., Parameswaran, M. G., & Jacob, I. (2011).
Strategic brand management: Building,
measuring, and managing brand equity. Pearson Education
India.
Kian, E. T. M., Mondello, M., & Vincent, J. (2009). ESPN—The
women's sports network? A
content analysis of Internet coverage of March Madness.
Journal of Broadcasting &
Electronic Media, 53(3), 477-495.
Lucey, P., Oliver, D., Carr, P., Roth, J., & Matthews, I. (2013,
August). Assessing team strategy
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1374). ACM.
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(2009). Sport communication,
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the coverage of Tiger
Woods in ESPN The Magazine. International Journal of Sport
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Porter, M.E. (1996, November-December). What is strategy?
Harvard Business Review, 61-78.
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