World Wrestling Entertainment - Case Study Example

The company has also engaged in movie production through the use of the varied characters in the WWE. Further, the company has also launched smartphone applications for the WWE programs aimed at boosting the company's revenue.
However, despite these ambitious business strategies, WWE has faced various strategic problems. To start with, the increased focus on social media has hurt the business strategy of the company. Many non-televised shows were introduced on the official WWE website, YouTube, and Facebook attracting a large number of viewers. As a result of the excessive online focus, other extension brands were limited. Secondly, there is a reduced number of divas matches that have been focused on non-televised dark matches hence not receiving enough reaction from a wide WWE fan base.
The competitive forces surrounding the WWE are vast but limited because WWE is a sports entertainment industry. To start with, the supplier power of the number of well-known actors used to perform live performances is limited. This is because other rival firms such as TNA and WCW (later bought by WWE) also compete for the few outstanding performers. Secondly, WWE has a wide customer base hence reducing the buyer power. This was mainly achieved by expanding their audience by making shows that were more acceptable among families. Thirdly, WWE faces limited competitive rivalry in the industry because of adopting business strategies that have been hardly matched by other competing firms. On this note, WWE was able to compete with WCW effectively and even bought the firm later.
Of more significance, WWE faces minimal substitution threats in the market. This is because the firm presents wrestling as a form of entertainment as opposed to other companies Prairie Wrestling Alliance that do not capitalize on the entertainment bit. This means that the WWE Company has enough market power to dominate the target market segment effectively. Further, the company experiences minimal threat from new entrants into the market. This is because of the large capital base required to start such a firm specifically by acquiring expensive contracts with reputable performers who have a large number of fans throughout the world.
Importantly, two major recommendations can be made to the WWE CEO. Firstly, the CEO needs to encourage market diversification for the firm. This way, WWE will be able to generate more revenues that can be used to improve the quality of production hence becoming effective in market competition. Secondly, the CEO should ensure that WWE upholds quality production to retain existing fans and even attract new fans of WWE productions. This will also make customers to be proudly associated with WWE production something essential for the survival of the company because diehard fans can help the company identify new opportunities that can be tapped.
In conclusion, WWE is a sports entertainment company that has tried to venture into new opportunities through diversification programs. However, even though the company did not succeed in all the diversification initiatives, it is evident that diversification resulted in an increased customer base that has contributed to the success of the company. Read More