SWOT Analysis of Adelaide Oval Stadium - Case Study Example

Adelaide Oval Stadium Name: Course: Tutor: Institution: Date: Table of Contents Table of Contents 2 1.0 Introduction 3 2.0 SWOT Analysis 3 2.1 Strength Analysis 4 2.2 Weakness Analysis 5 2.3 Opportunities Analysis 6 2.4 Threats Analysis 6 3.0 Recommendations 7 3.1 Lean Management 8 3.2 Funds Allocation 9 3.3 Marketing Strategies 10 4.0 Conclusion 11 References 13 1.0 Introduction Internationalization and the evolution of a common global market led to increased organizational competition and the evolution, development and growth of the multinational organizations. However, globalization not only implicated on the international trade, but also on the local trade industries. As such, local organizations have to establish sustainable competitiveness in order to enhance and stimulate their market success rates. This revolution swept across industries both goods and service industries including the sports industry as Smith, ACT and Stewart (2010, p.2) argue on the emerging sports commercialization aspects. This report evaluates competition and the development of a competitive edge in the service industry. In particular, the report reviews the Australian sports, events and tourism hosting facilities. In order to offer a practical base on the evaluation, the study adopts the Adelaide Oval stadium, the largest stadium in Southern Australia, as its case study. The report evaluates the venue internal analysis features offering it’s a competitive edge over others in the industry through a SWOT analysis. Further, based on the analysis outcomes, the report offers recommendations through which the stadium can retain, enhance, and/or develop a competitive edge. 2.0 SWOT Analysis In evaluating the status and functioning of the Adelaide Oval stadium as an events and tourists venue, this report develops a SWOT analysis on the stadium based on its structure facilities, venue location as well as events held in the facility. Pahl and Richter (2007, p.16) stated that a SWOT analysis is an imperative tool that enables the establishment of areas in which the stadium has strengths and opportunities whose enhancement would enable it achieve a competitive edge. In addition, the analysis enables an establishment of stadium weaknesses and threats, an analysis that facilitates the initiation of appropriate development and corrective measures to enhance and restore venue attractiveness. 2.1 Strength Analysis The Adeline Oval stadium is one among the most advanced and large stadiums across Australia. In fact, the stadium is the largest in South Australian region. In this regard, the 2010 upgrade on the field by the labor party, increased its seater capacity to over 5,000 occupants inclusive of the stands (Earle and Gribble, 2013). With such a large sitting capacity, the stadium has the ability and capacity to host large events such as the rugby series. This ability can be cited in the continued hosting of cricket series matches over the years. The major venue strength can be cited in the 2010 election pledges between the liberal and labour parties. On one hand, the liberal party promised to develop a similar venue with modern infrastructure and suitable events venue facilities. In a counter move, the labour party promised to renovate the stadium as well as improve its infrastructure. Consequently, upon the narrow labour party win, the stadium received a huge facelift in terms of its seater capacity as well as facilities improvement. In this improvement approach, the Australian government invested funds into developing the venue infrastructure. Today, the stadium s equipped with modern facilities such as CCTV cameras for security enhancement. Therefore, Baulderstone website (2014) states that the possession of this infrastructural superiority offers the venue strength over others in the market. In addition, the venue has over the years established its brand in the market. As such, the venue has established its market status as a market leader over others such as Melbourne Stadium in the Southern part of Australia. Through this approach, the venue has over the years increased its reputation. Consequently, associations such as the South Australian National Football league as well as the South Australian Cricket associations established their base headquarters in the venue. Through such an increased reputation and status, the stadium has earned increased opportunities for hosting local and international events, thus expanding its revenue base over other stadium venues in the region. 2.2 Weakness Analysis Despite the venue strengths as established in this report analysis, the venue faces a range of increased challenges in the market. On one hand, the venue faces an increased membership decline challenge. The venue is run on a membership scheme approach. The members’ form clubs that participate in hosting various events and activities such as sporting, arts and cultural events (“Adelaide Oval”, 2014). Therefore, the venue has two types of memberships both personal and club memberships. The stadium members acquire rights to host events in the respective venues at preferential treatments through reduced rates and venue charges. However, of late, the venue has registered a declining membership growth rate. This is in contrast to statistical analysis of the venue membership growth rate in the early years prior to the millennium. Currently, the organizational membership has significantly reduced leading to reduced organizational earnings. Due to reduced earnings, the venue falls at the risk of running at a budgetary shortage with increased expenses at a declining rate. In addition, the venue faces a weakness in the administration and management of its activities. Currently, the venue is under the Adelaide Oval SMA Ltd management. However, it is owned by the Australian government. The existence of these two centers of power in its management reduces the venue management decision making process. Any operational or strategic decisions have to be processed and approved by the respective government functions such as the cultural, tourism and the sports departments. Therefore, the decision making process in the venue is relatively low, consequently, the venue has emerged as a relatively unreliable venue for emergency events or events with unfixed schedules requiring increased flexibility. As such, this has denied the organization the much needed competitive edge based on flexibility. 2.3 Opportunities Analysis The venue management has an increased opportunity for growth and expanding its influence and attractiveness in hosting events as well as serving a tourist attraction site. On one hand, the major venue opportunity for its increased attractiveness development s based on the labour party political goodwill. The labour party, through its election pledge, committed to improving the field and venue center into a modern global class that allows for the use of modern facilities and equipments. Therefore, the existing political goodwill by the labour party offers the venue an opportunity to expand and evolve into the future. In addition, the venue has an increased expansion opportunity due to increased Australian economy status improvement. Over the years, development and growth of the Australian cultural and sports functions have promoted its participation in the global platform (Gibbs, 2001, p.158). Moreover, increased improved infrastructures in the market have increased Australian market preference as a potential international events hosting. Therefore, this offers the venue an increased opportunity for increased revenues into the future. 2.4 Threats Analysis Although the venue has an increased expansion opportunity, it faces a range of external threats that risk its decreased market competitiveness as a tourist attraction as well as an events hosting hub. One among the challenges is the political risk posed by the liberal party. In its election campaigns, the liberal party promised to develop similar but better sporting stadiums in Southern Asia. Although the party lost in the last election, the Australian society is a democratic nation where elections are held on a regular basis. Therefore, the liberal party has an opportunity of winning the elections in the next general election (Pomfret and Wilson, 2011, p.87). If such an event happens, the party will develop new stadiums that will reflect a modern outlook as well as status. Consequently, the new venues will take over the existing stadium consumer base. Moreover, an additional threat on the venue is the establishment and continued growth of the existing stadiums such as the Melbourne stadium. Due to their small sizes, the stadiums have efficient management systems allowing for increased market flexibility. Consequently, event’s organizers prefer these venues over the Adeline Oval stadium due to its increased management and decision making bureaucracy (Bale, 2001, p.23). Based on the SWOT analysis above, it is apparent that Adeline Oval stadium remains an increasingly attractive tourist site in Australia especially after its renovation. Moreover, it remains competitive due to its membership programs. However, declining membership programs and the development of new stadium venues in Southern Australia remain as key among challenges facing the development of a competitive edge for the venue. Therefore, these challenges call for fundamental improvements in the running and operations in the Adeline Oval stadium. 3.0 Recommendations Based on an analysis and account of the stadium current status in the Australian events and tourism industry, this report recommends a range of improvement alternatives through which the stadium can adopt to acquire an increased strategic improvement as well as enhancing is market competitiveness in terms of events hosting as well as serving as a tourist’s attraction center. 3.1 Lean Management A review on the venue management establishes that its management and ownership by the Australian government increases its decision making process complexity. As such, the venue management is classified as bureaucratic with a lengthy authorization process required for the facilitation and allowance for hosting events in its designated venues. As such, the report analysis concludes that the bureaucracy nature of the stadium reduces its competitiveness against competitors in the Southern Australia region. This conclusion is in congruence with a study developed by Carnis (2009, p.59). The author evaluated the implications of organizational management bureaucracy on the respective organizations. The study established that organizations adopting this management structure exhibited increased market inflexibility and reduced competitiveness. Therefore, the study recommended the establishment and adoption of alternative organizational management systems. Similarly, this report recommends an alternative management system for the Adelaide Oval stadium. In particular, this report recommends the adoption of a lean management system. Agus and Mohd (2012, p.93) argued that a lean management system involves the development of a management system through which there are minimal management systems and governing hierarchies. As such, an efficient lean management system incorporates the element of empowerment. Through empowerment, the organizational managers on the ground are mandated and entrusted with the role of developing appropriate decisions on behalf of the overall management. Therefore, in the case of the Adelaide Oval stadium management, this report recommend that the management staff charged with overseeing the facility operational activities, should be empowered to make appropriate venue hiring , charging and allocation decisions. Such as management roles delegation would reverse the current decision making inflexibility trend evident in its management. Moreover, the move will allow for increased flexibility allowing the stadium an even competition ground with other upcoming events hosting facilities in the Australian market. Therefore, the Australian government should reduce its control on the field management and instead have its representatives in the field management board for transparency and stakeholders’ inclusivity in the new lean management system. 3.2 Funds Allocation Besides its slow decision making process, the Adelaide Oval stadium faces a challenge due to the upcoming of new and modern events hosting facilities in the Australian market. Such new facilities have modern equipments that enhance comfort and participants security. As such, the new emerging facilities have encroached on the Australian market. Therefore, in order to restore the stadium competitiveness, it is imperative to improve its current facilities status. Although the Australian government, through the labour party campaign promise upgraded the stadium, there remains a lot to be done on the facility. In this regard, its renovation and improvements should not be based on political goodwill. Instead, the government should set aside funds meant for stadiums renovation every financial year I order to develop a community support base to fuel the activities and functions of such venues (Fredline and Faulkner, 2002, p.107). Such allocations should be provided for in the Australian financial spending regulations. Consequently, such a move would safeguard the stadium against political goodwill shifts. For instance, as the situation stands, if the labour party looses the next general elections to the liberal party, the ongoing renovation and facelift in the facility would halt in favor of another new stadium establishment. However, the stadium history serves as its main tourist’s attraction site. For instance the record attendance in the historical cricket match remains a major tourist attraction into the venue. Thus, in order to enhance the retention of these statuses, the government should enact a regulation safeguarding the stadiums as well as allocating annual renovation funds to facilitate continuous improvements of such facilities. With appropriate regulation on stadiums renovation and improvement funds allocation, the Adelaide oval stadium will remain competitive and relevant as an events hosting venue. 3.3 Marketing Strategies Currently, the facility relies on its membership system as a form of customer acquisition in the market. Therefore, a majority of the venue collected funds are channeled towards increasing its membership base. However, increased lifestyle changes as well as the dynamic global markets, membership programs have increasingly grown in competitive in the global market. This is as evidenced in the decreasing Adelaide oval stadium membership program growth rate. This evidences the fact that adoption of membership programs as the venue main marketing strategy has failed. Consequently, this report recommends the adoption of an alternative marketing strategy. Pettersson and Getz (2009, p.311) in a review of the Are Sweden hosting of the 2007 World Alpine Ski Championships advertisement campaigns argued that the development of an appropriate and effective marketing strategy plays a significant role in enhancing eventual organizational success. In particular, this report recommends the development of an advertising campaign through media houses and endorsements. Over its historical existence, the venue has hosted a wide range of events and functions ranging from sports, social and even tourists related events. Therefore, in order to increase its market reputation as well as establish a profiling in the consumers perception, the venue should seek endorsement messages from the facilitators’ and organizers of such historical and remarkable events. Endorsements enhance marketing and advertising credibility through testimonials affirming on the venues ability to deliver on advertised promises. Therefore, through the adoption of advertisement endorsement messages, this report argues that the Adelaide Oval stadium will attain increased market presence and influence. Through such an approach, the facility will gain an advantage over upcoming events hosting facilities that lack such a history and chain of past mega successful events hosted in their premises. Moreover, the report recommends that in order to facilitate the success of this proposed marketing strategy, the management team should consider establishing a functional marketing team comprised of professionals mandated with the task of developing and rolling out appropriate marketing tools. 4.0 Conclusion In summary, this report reviews the case of the Adelaide Oval stadium in Southern Australia. In this case, the report evaluates the current venues status with its respect to potential and suitability for hosting events as well as serving as a tourists attraction cite. In order to determine its current status, the report evaluates the stadium internal systems through a SWOT analysis. Under its strengths, the report reveals that the stadium enjoys a strong brand name and identity. Further, it establishes that the stadium enjoys a good political goodwill, which has facilitated its current renovation and face-lifting developments. A weakness analysis establishes that the venue faces a decreasing membership program subsequently resulting to reduced earnings. Moreover, the study opportunities analysis establish that increased Australian attraction as an international destination and political goodwill serve as its support factors into its future expansion. However, the report points out at increased competition as a major threat to the stadium market competitiveness. Based on the above analysis, the report concludes that it is imperative for the venue management to initiate strategic changes as a way of facilitating future long term competitiveness. Among the recommendations include the development of a lean management with empowered line managers, a fund allocation regulatory system for venues renovation as well as the development of a new marketing strategy. Through an incorporation of these recommendations, this report concludes that the Adelaide Oval stadium has the potential to remain competitive in the long run. References Adelaide Oval, 2014, Stadium Club. Author. [Online] Available at < http://adelaideoval.com.au/library/130912%20Adelaide%20Oval%20Corporate%20Brochure%20SPREADSFA_0.pdf> [Accessed June 28, 2014]. Agus, A. & Mohd, S.H. 2012, "Lean production supply chain management as driver towards enhancing product quality and business performance", The International Journal of Quality & Reliability Management, vol. 29, no. 1, pp. 92-121. Bale, J. 2001, Sport, space and the city. Blackburn Press, Caldwell, NJ. Baulderstone, 2014, Adelaide Oval Redevelopment. Author. [Online] Available at < http://www.baulderstone.com.au/assets/includes/PROJECTS/SPORT%20AND%20RECREATIONAL%20FACILITIES/ADELAIDE%20OVAL%20REDEVELOPMENT/Adelaide%20Oval%20Redevelopment.pdf> [Accessed June 28, 2014]. Carnis, L.A.H. 2009, "The Economic Theory Of Bureaucracy: Insights From The Niskanian Model And The Misesian Approach", Quarterly Journal of Austrian Economics, vol. 12, no. 3, pp. 57-78. Earle, R, & Gribble M., 2013, Cricket Hallowed Ground: All you need to know about the $535 million Adelaide Oval. The Daily Telegraph. [Online] Available at < http://www.dailytelegraph.com.au/sport/cricket/hallowed-ground-all-you-need-to-know-about-the-535-million-adelaide-oval/story-fni2foir-1226758518232?nk=d126f28a4024416a3ce80299f2bdb1a6> [Accessed June 28, 2014]. 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