How Has The Emergence Of The Internet Help The Sport Industry - Research Paper Example

? How Has The Emergence Of The Internet Help The Sport Industry? Information technology (IT) is one of the promising concepts of modern era which is most vital to sustain in the market for long run. Apart from this, it is essential to improve the efficiency and profitability of an organization among others in the market. In addition, implementation of internet marketing also leads to an inescapable alteration of organizational effectiveness in order to achive its future goals and objectives. Furthemore, internet helps to enhnace the growth and the brand recognition in case of both reputed and newly emerged organizations. Thus, promotion of internet is beneficial for an organization to cope up with the challenges in order to retain its position in the market among others. This is a precise paper describing the benefits and influences of internet on the revenue and net income of organizations related to sports industry. In the paper, the impact of internet on varied sports brands is revealed namely Nike, Reebok , Saucony and Puma among others. Table of Contents Abstract 2 Table of Contents 3 Introduction 4 Discussion 5 Competitive Advantage 5 Conclusion 13 References 14 Bibliography 17 Appendix 18 Introduction The term ‘Information Technology (IT)’ mainly deals with technology which is utilized for handling information or facts. It is defined as that subdivision of engineering that mainly deals with the utilization of electric devices namely computers and telecommunications protocols to retrieve, accumulate and convey information or facts to other sources, when required. The process of IT includes attainment, dispensation, storage and broadcasting of verbal, pictorial, textual and statistical information with the help of a microelectronics-base, blended by computing and telecommunications. IT mainly utilizes internet as the prime source to transfer information in this era of globalization and industrialization (National Science Foundation, 1996). Internet is an international system which is interconnected with varied computer systems which utilizes numerous usual internet procedure suites (TCP/IP) to serve billions of customers globally. It is a system of networks that comprises millions of personal, public, scholarly, business and administration networks around the globe, which are allied by a wide array of electronic, wireless and visual networking equipments (Coffman & Odlyzko, 2001). Internet is one of the significant technologies which is utilized to transmit an extensive assortment of information or facts, namely inter-related hypertext credentials of the World Wide Web (WWW) as well as infrastructure to support electronic mails. The introduction of internet has permitted or accelerated innovative types of human relations with the help of immediate messaging, ‘internet forum’, and societal networking sites. In addition, the passion of online shopping also emerged both in retail sectors and in sport industries. This is so, because of internet facility, individuals can access any retail or sports website all round the world in a single span of time, which is highly effective (Rajashekar, 2004). The paper highlights the influences of internet on the industry of sports. It also spotlights various other factors as well affecting the sports industry due to internet. Discussion According to Smith & Westerbeek (2003), internet is one of the primarily used global networks, which includes an organized set of computer networks to offer variety of information or facts from one place to the other. Internet is also known by a short form of scientific term named internetworks, which includes interrelation of computer systems with unique gateways or routers. Moreover, due to emergence of internet, the position of sports industry enhanced in a robust way all around the globe, which is rather quite noteworthy. This is because invention of internet enhanced the competitive advantages of varied sports brands from one another. Competitive Advantage Competitive advantage is referred as the process by which a specific brand is distinguished from its rival competitors. Competitive advantages include the planned advantages that a particular sports brand has over its competitor in order to sustain for long run. Competitive advantage is one of the significant strategies which facilitates in augmenting the corporate image and brand distinctiveness in the market among others (Smith & Westerbeek, 2003). Competitive advantage can be attained by an organization by introducing varied innovative products and /or services to customers in order to satisfy the needs and the desires. Along with this, in recent era, most of the organizations are introducing online shopping websites in order to promote the fresh designs and products. Thus, internet online services acted as a beneficial factor thereby enhancing customer awareness and responsiveness towards the specific brand (Evans & Smith, 2004). This is an essential policy utilized by varied multinational renewed sports brands to outperform their competitors to improve their respective positions in the market. Similar case has been observed in Nike. Nike Nike Inc implemented internet services or IT to make the strategy of competitive advantage rather successful. It is essentially adapted in order to compete with other competitors of its field namely Reebok, Adidas and Puma among others. It enabled Nike to enlarge its target market on international basis thereby introducing varied innovative products such as diverse new sports shoes of assorted colors and ranges for both men and women, apparels, sports equipments and other accessories to attract more customers. Thus, it can be affirmed that the strategy of competitive advantage became more successful due to the introduction of internet in this recent era. Due to internet services, the promotion and the marketing of varied innovative products have been made easier and simpler thereby enhancing the demand of the brand in the market among others. In this context, it can be depicted that internet services played vital role in enhancing the revenue of Nike to US$2.33 billion in first quarter of the year 2011 (EDGAR Online, 2011) as compared to US$9.2 billion in 2010 (Media.corporate, 2010). Therefore, it can be revealed evidently that advertising of the varied products with the help of online services enhanced the total revenue along with customer reliability and brand distinctiveness. Hence, strategy of competitive advantage became successful only with the help of information technology or internet facility (Evans & Smith, 2004). Ronald (2008) also described internet as the prime source which facilitated the upliftment of sports industry on global basis. This is due to the fact that with the help of internet services, many useful information or facts may be transferred in a short span of time. Apart from this, it also acts as an essential media for promotion or advertising various innovative products and/or services to the customers in order to enhance the demand along with sales of the organization. Moreover, in this age of competition, online marketing is one of the most effective ways to promote and position the products of any sector due to high craze of IT (Ronald, 2008). It has created a type of revolution all round the globe. In addition to advertising, the other important facility of internet is to offer a unique shopping experience to the customers at a reasonable price as compared to others. Moreover, varied types of products along with designs can also be accessed according to varied tastes and preferences. In addition, internet services offer highly interactive and customized shopping experiences as compared to offline marketing. This is because in the single movement, an individual can view the products of varied companies prior to making the decision of purchase, in a cost efficient way as well. Thus, online shopping is highly preferred in recent days by all individuals, irrespective of age-groups (International Journal of Sports Marketing & Sponsorship, 2006). Due to high passion of online shopping, now days, each and every organization is providing high concentration on online promotional activities. High discounts as well as rewards are also provided in order to attract customers as compared to others. Thus, it can be depicted that introduction of internet services enhanced the passion of online advertising strategy in sports industry. This helped to create a specific identity and brand recognition in the market among others just as Reebok. Reebok is the other reputed sportswear brand apart from Nike, which utilized internet services for online promotion of its products. Along with this, due to online advertising, the identity of the brand can reach to many far off countries thereby enhancing customer attentiveness and consciousness. This also increases brand position and market share as compared to other competitors thereby reducing the threats of new entrants (Interactive Advertising Bureau, 2008). Reebok and Adidas Apart from the above discussion, in order to enhance the international sales, Reebok along with Adidas introduced commercial activities in three unique channels namely wholesale, retail and through ecommerce media. The prime objective behind this strategy has been to enhance customer base and to fulfill consumers’ needs in order to increase brand potential thereby becoming more receptive to market progress and trends. In these three distinctive channels, e-commerce is more accepted as compared to others which fascinated, converted and retained more number of customers. E-commerce facility proved itself as the ‘best-in-class’ shopping understanding as compared to other sources. It also helped to enhanced customer relationship thereby increasing total sales of adidas Group to about € 11.990 billion in year 2010 as compared to € 10, 381billion in 2009 (Adidas AG, 2011). Thus, it can be affirmed that introduction of internet services, enhanced the sustainability and corporate image in the international market. The sports industry among others is one of the largest sectors, which offers quite a significant amount for the Gross Domestic Product (GDP) of the economy. Thus, in order to enhance the revenues, the sports industry is always attempting to introduce varied new products along with innovative promotional media. Among which, internet or online marketing is the most promising tool of recent days. This is due to its fast intensification and development as compared to other electronic media and type of communique. Moreover, due to large extent of people utilizing internet as compared to others so it has turned out to be a legitimate shape of mass media. Thus, this fact enables internet technology to position itself as one of the noteworthy media for expanding operations of business or industries. Apart from other sectors, promotion through online media is increasing at a rapid pace in case of sports industry. Sports related organizations are more passionate towards IT in order to enhance its performance and productivity. The principal reason behind it is high coverage potential of internet (Holladay, Glusman & Soloway, 2011). Sports industry has attempted to market the products through online media as it helps in direct selling as compared to offline media. Apart from this, internet marketing offers several other benefits as well. As a communique channel, internet media has the frame of interactivity as compared to other marketing channels, which is very essential in case of sports promotion. This is due to the fact that it helps in building strong relations thereby improving customer dependency and responsiveness. It is essential to sustain in long run for sports industry in this competitive environment. In addition, internet marketing as the transaction media also provides the business a specific periphery of visibility and enhances customer base as well. Thus, it helps to enhance sales and profitability. The other important benefit which is provided by internet is reduction of operation, rental and expense costs when used as a distribution channel in case of sports industry. Hence, it can be evidently depicted that internet technology is highly effective for not only sports industry but for other sectors as well (Holladay, Glusman & Soloway, 2011). Apart from the above described factors, there are certain other causes which make internet a significant technique for marketing. In case of internet advertising, the issues like order intricacy, specialty of merchandise and expedient location among others do not arise. Hence, most of the organizations prefer internet advertising instead of other forms. In addition, all other types of marketing include the following requirements such as logistics, quality assurance and after-sales services, but the goods sold through internet differ immensely. Internet advertising provides the opportunity of classifying the products into two type’s namely investigative and experienced commodities. For search or investigative goods, merely external information is essential for evaluation but special assessment is needed in case of experienced goods. Search as well as experienced products of varied organizations can be promoted through internet promotion. This signifies that both newly launched along with reputed or branded products are promoted with the help of online marketing. Similarly, both innovative as well as reputed brands of sports can promote their products through internet in order to enhance the brand identity and total revenue. Hence, it can be revealed that internet offers high impact on sports brands as compared to others (Holladay, Glusman & Soloway, 2011). Saucony & Puma Similarly, both Saucony as well as Puma are utilizing internet marketing in order to promote their products to retain in this competitive market of sports industry. Saucony is not as reputed as Puma or Nike but still it is also advertising its goods through online sites rather than offline media. Saucony is an American producer of athletic shoes but not as branded as Puma or Nike. Other than sport shoes, it also deals in apparels and accessories sections. In order to position its products, Saucony is utilizing internet marketing just as other reputed or well-established brands (Saucony, 2012). In the website, just as other brands, Saucony also provides all necessary details about its products such as price, designs, new arrivals, discounts, available sizes and exclusive stores information as well (Saucony, 2012). The vision of Saucony is to become one of the renowned athletic brands like other three, so in order to fulfill the aim, the company started advertising through internet. As a result, the total revenue as well as sales improved which facilitated Saucony to position itself as a brand which manufactures shoes for explicit ‘track and field’ athletic programs. This proved beneficial for its parent concern as well named Collective Brands thereby enhancing total income by US$97.30 million in the year 2010, which is rather noteworthy (Paylessprintablecoupons, n.d.). Thus, it can be affirmed that along with net income, customer awareness, market share and competitiveness of the brand also increased. Hence, from the above discussion, it is apparent that internet offers high impact on the sports industry. Likewise, Puma is the other reputed brand. Puma also introduced online marketing in order to improve the recognition of its brand among others. Along with this, in order to sustain in the market in long run, internet marketing is introduced by the sports companies. Although Puma is a well-known brand in sports sector, still in order to retain its position and competitiveness, it is utilizing online promotion. Thus, it can be avowed that both renowned and emerging organizations use internet for advertising. Puma, also markets its variety of products. Puma deals in footwear, sportswear, sports goods and fashion accessories among others. Although Puma is a part of French luxury group named Pinault-Printemps-Redoute (PPR) but still in order to increase its revenue, internet promotion is attempted. As a result, the revenue of Puma increased to about €14.61 billion in the year 2010 along with profit of € 202.2 million in 2010. Apart from these, internet promotion also enhanced its corporate image and uniqueness among others in the market. Moreover, it also improved Puma’s customers’ dependency and consistency which helped to sustain in this competitive era. Hence, it is evident from the above discussion that internet offers high impact on the sports industry thereby enhancing the organization’s brand image and profitability, which is very essential to sustain in the long run. Internet also plays an important role while remaining competitive in this age of globalization among others. Conclusion Conclusively, it can be afirmed that internet is one of the significant inventions in the world of modern age. It is essential to create customer awareness and brand recognision. Apart from these, it also helps to improve profitability and productivity of an organization, which is necessary to sustain in this age of competitiveness. Thus, emergence of internet leads to a revolution in the field of advertising and promotion as it became rather easy to reach more customers in a single period of time. Moreover, due to high enthusiasm towards internet among the youth of recent generation, online marketing also increased to an utmost extent. Promotion through internet is adopted by all the industries of recent era irrespective of sectors. Besides, internet offers high influences in sports industry as compared to others.     References Adidas AG. (2010). Fit for the future. Retrieved from http://www.adidas-group.com/en/investorrelations/assets/agm/2011/gb_2010_en.pdf Coffman,K. G., & Odlyzko, A. M. (2001). Growth of the internet. Retrieved from http://www.dtc.umn.edu/~odlyzko/doc/oft.internet.growth.pdf EDGAR Online. (2011). Nike Inc. Retrieved from http://nike.q4cdn.com/f16d2309-fb16-48b7-b186-f132f068ac73.pdf?noexit=true Evans, D.M. & Smith, A. C.T. (2004). The internet and competitive advantage. A Study of Australia’s Four Premier Professional Sporting Leagues 7, pp. 27-56. Holladay, J. S ,Glusman, A. J., & Soloway, S. (2011). Internet benefits: Consumer surplus and net neutrality. 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Retrieved from http://www.stjohns.edu/media/3/8b8c77f043ab4fd1aeb26873f5f006c8.pdf Appendix Internet Promotion Revenue/Income Nike $9.2 billion in 2010 Reebok € 11.990 billion in 2010 Puma €14.61 billion increase in the year 2010 Saucony/Collective Brands $97.30 million in the year 2010 Read More