Essay on The Business of The National Basketball Association

Essay on The Business of The National Basketball Association

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1. Nature of the business
The National Basketball Association (NBA) is a professional basketball league located in the United States. It is composed of 30 franchised teams, all of which are in the US except for one located in Canada. It markets teams and players, and regulates franchised team ownership. The NBA licenses rights for broadcasting and collects revenue from sponsorships with corporate partners. It also operates the WNBA, a women's professional basketball league; the NBA Development League for players who are preparing for the NBA; and NBA TV, a cable TV channel offering news, original programming, and live game broadcasts. The NBA was established as the Basketball Association of America in 1946.
2. SWOT Analysis of the NBA

• Large pool of resources and capital.
• Minor league function to develop players who are not ready for the NBA.
• Established organization with developed and competitive teams.
• International offices located in China, Europe, Canada, Germany, France, Japan, Mexico, Spain and Taiwan.
• The NBA is a desirable basketball hotspot. Domestic players train to be drafted, and International players want to enter the NBA.

• Poor management of player relations.
• Deteriorating brand image of certain players.
• Little to no control of the players off of the court.
• Goal of creating a fair playing field among big and small market teams has led to too many regulations.
• Few superstar talents to draw fan attention/loyalty.

• Untapped market segments in the US – Caucasians, middle-aged people.
• No other adequate substitutes for professional basketball.
• Pool of international players.
• Ability to explore new markets.
• Emerging technology to eng...

... middle of paper ...

...ame all crossed paths as college kids. Building on collegiate stars gave pro basketball an identity. It allows players to develop better due to the superior coaching staff in colleges. Staying in college will also let players develop a valuable following, which benefits the NBA.

7. Recommendations

The NBA should develop a differentiation leadership strategy. Events that the NBA has organized are becoming irrelevant when compared to its rivals’. For example, the MLB’s All-Star Game has an impact on post-season results. The MLS’s All-Star game features the league’s best against top European soccer clubs. The NHL’s All-Star Game features a ton of scoring in a sport that typically has low scores. There is no novelty factor for the NBA during its All-Star Weekend. Only the NFL’s Pro Bowl is worse than the NBA’s All-Star Weekend in terms of entertainment value.

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