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Business strategy: Manchester United FC: continuing success but at what cost - Essay Example

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BUSINESS STRATEGY: MANCHESTER UNITED FC: CONTINUING SUCCESS BUT AT WHAT COST? Table of Contents Table of Contents 2 Introduction 4 Analysis of the company 4 SWOT analysis 4 Strengths 5 Weaknesses 6 Opportunities 7 Threats 8 PESTLE Analysis 9 Political 9 Economical 9 Socio-cultural 9 Technological 9 Legal 10 Environmental 10 Conclusion 10 Introduction Manchester United Ltd…
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Business strategy: Manchester United FC: continuing success but at what cost
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Download file to see previous pages Analysis of the company SWOT analysis Swot analysis is considered to be a tool for making strategic decisions of an organization which helps in the evaluation of different aspects of the company like its strengths, opportunities, weaknesses and threats encountered by the organization (Pahl, & Richter, 2009, p.1). STRENGTHS WEAKNESSES Brand image Sir Alex Ferguson as a manager Ticket revenue Product and services variety Profit oriented Hostile takeover OPPORTUNITIES THREATS Market expansion Website Competitors Salary cap MUST Strengths Brand image can easily be considered as the greatest strength of Manchester United football club. Its brand image is globally recognized. Millions of fans and followers of the football club are present all over the world. Any type of merchandise available in the market having the logo or the name of Manchester United is easily identified by any of its fans all around the world. However the club needs to live up to the expectations of their fans in order to sustain their brand image. Sir Alex Ferguson, the manager of Manchester United for past many years, is one of the powerful and biggest assets for the football club. Manchester United was managed most effectively and efficiently by Sir Alex Ferguson for more than 25 years now and still continuing to do so (Manchester United Ltd., 2012a). He can be regarded as the most successful manager ever in the history of club football in UK. This type of consistency in performance maintained by the club helps in the decision making process regarding prospective investments made by the company. Sales ticket is also considered to be one of the greatest strength of the club because of the huge fan base it possesses. There is a huge demand for the match tickets and the revenues generated from ticket sales are expected to increase significantly in the upcoming years. However ticket sales are not the only income source for the club. It has its products in offer too which contributes towards a significant portion of the revenues generated by Manchester United. Huge number of retail stores is run by MU and its distribution channel is also quite strong. Weaknesses The variety of products offered by MU can be considered as one of its major weaknesses. It is true that MU has a wide variety of products in offer for their fans, starting from the merchandise products to credit cards. However an area of concern is whether fans were involved in this type of decisions or not? It has been observed that MU had concentrated more on a very small number of income channels only. It needs to perform more research in this field and open up new avenues for revenue generation. MU is required to clearly identify its existing products that are in offer; only then would they be in a situation where they could employ different strategic models like Boston Matrix to have a better understanding of their business. This would allow the club to have a sustainable growth and development. Another key area of weakness that has crept up within Manchester United is that the club is more concentrated towards earning profits because of their current success and huge amount of earnings. It is now less focussed in football and more on profit making motives. This can have a detrimental effect on their fans. Hence the club management should be aware of this situation and take pro-active steps ...Download file to see next pagesRead More
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