Answer 1: Have you ever think why few teams are stronger than others, like why NBA is very successful? I am going to apply Porter’s 5 Force model in “professional basketball Industry” to draw conclusions about major success factors for firms (here teams). For that I am selecting NBA industry. The 5-Force Industry Analysis first introduced by Michel Porter, Harvard Business School professor, a quarter-century ago. This theory examines the suppliers, buyers, product substitutes, existing firms’ rivalry and new entrants in a firm’s product market. Industry Rivalry: According to Porter, the key factors rising rivalry among firms in an industry are equally-balanced competitors, market maturity, high exit barriers and high fixed costs. And all of these factors are there in teams in the National Basketball Association (NBA). • First, the industry is organized by the NBA to have 30 equally balanced competitors. So, the distribution of capacity across teams must be relatively equivalent in order to maintain game suspense and thus it attract fans. The NBA endorses competitive balance with different measures such as reverse-order draft choices, salary caps, revenue sharing and etc. • Second, market growth, which is measured by attendance at NBA games, has leveled recently, so increasing competition among teams for a fixed number of fans. • Third, the core fixed costs for teams, such as physical assets and labor contracts, are much high, which builds pressure to fill quantity. • Finally, the NBA restricts firms from exiting the industry at will. The mixture of these four factors creates great rivalry among teams chasing sponsors, licensees and fans for a fixed pool of revenue with covering high and often increasing costs. Customer Power... ... middle of paper ... ...movie, videogames, college and amateur sports, and eating out. As the price of attending a basketball game continues to rise teams need to offer motivations to fans, for example family and season ticket packages, to make game attendance more interesting for entertainment seekers. New Entrants: New entrants into this industry are unusual since NBA League approval and a sharp franchise fee stand in the way of potential new team owners. Moreover, attempting to deceive the NBA would put the following difficulties into an entrepreneur’s path are: massive capital costs, lack of brand reputation, lack of TV revenue, and steep competition for talent. Extension teams occasionally do get approval, like the Charlotte Bobcats founded in 2004. Though, the competition that so many different industries face from new entrants is practically non-existent in professional basketball.
Cause A. Over the past few years inflation of player contracts has made it hard for the smaller market teams to play competitively w...
Most people in todays’ society know how competitive the NBA can be. The NBA has been around for years and years and is now beginning to be more competitive than in previous years. So many teams have so much talent that some know how to use perfectly and some use it to a minimum. The NBA has different positions like Point Guard, Shooting Guard, Small Forward, Power Forward and Center. These positions require specific training and skills to know how to do. Some people have the talent for one position while some people can have the talent for all positions. The Golden State Warriors and Cleveland Cavaliers are the two most competitive teams there is in the league compared to the
Since its creation in 1893, the sport of basketball has been one of the most popular sports in the United States. One wouldn’t have to search long to find a basketball court and a pickup game in most American cities. Many people around the world look up to the stars of the National Basketball Association as role models. Despite the vast popularity of basketball, there is only one major league in America: The National Basketball Association, to be referred to in this work as the NBA.
Many NCAA basketball players who make the decision to enter the NBA are not mentally prepared to deal with the responsibilities of life in the NBA. Young players depend on others who influence them or help make bad life decisions. What the young players visualize as the reward for playing in the NBA is the big money and with that big money make many mistakes financially. In th...
Since the inception of basketball in 1891, the game has become a contributing factor in shaping American culture. The birth of the NBA only served to cement basketball as one of the major sports in the United States. The NBA’s efforts to reach fans all around the world have been facilitated by emerging technologies and partnerships with foreign media providers. Due to it’s rich history with the game of basketball, China has become the NBA’s second largest market. A contributing factor to the NBA’s success in China has been China’s long standing collectivist culture. The NBA and basketball have been able to evolve with China’s emerging individualism in its younger generations. The continued success of the NBA in China will continue to grow with
Sports are a great business that creates great revenue for organizations that are in the major leagues. In this particular industry, revenue is generated through the sales of tickets to the game spectators and loyal team fans. Baseball, hockey, basketball, football and other sporting teams playing in their corresponding teams gain a substantial percentage of their revenues from the sale of attendance tickets. Many studies have been conducted to establish the factors that determine game attendance in different leagues. One of the most important findings is that, despite increase in ticket prices over the years, the attendance demand has not decreased.
Ticket prices can have a major impact on professional sports. The difference in ticket prices are what helps and hurts attendance at professional sporting events. When it comes to ticket prices there are many factors that can affect the price per ticket. In this review there are three main categories that are being focused on: (a) attendance, (b) pricing strategies and (c) ticket sales. Each category has different factors that affect ticket prices differently. In attendance, there was the economic crisis that started in late 2007. Strikes can happen at any time in professional sports. There is also the probability about the opposing team and its affect on ticket prices for those events. For pricing strategies, there are two main strategies that can be used for a professional sports team: (a) variable pricing and (b) dynamic pricing. The final factor discussed is the team’s decision process of setting ticket prices. There are four main areas that are being reviewed for ticket sales: (a) tactics used to increase ticket sales, (b) team owners’ role, (c) second hand ticket markets, and (d) price inelasticity. This review will show substantial evidence in each category that affects ticket prices for professional sports in America.
The National Basketball Association has gone through a lot to get to what it is today. Today’s league contains thirty teams. These teams are divided into two conferences, the east and west. Fifteen teams are in the east and fifteen teams are in the west. Another way they are divided is there are six divisions that contain five teams each. Two NBA teams the Golden State Warriors, and the Cleveland Cavaliers have battled it out in the finals for the last three years and are the front runners this year(Trenchard, NBA Then and Now). In today’s league, players
One layer of this onion is how upset it makes the NBA's television partners. That part can be understood. ESPN/ABC and TNT pay a lot of money to broadcast NBA games. The current deal the NBA has with its partners adds up to nearly $3 billion. Multiple games are broadcast per week on both ESPN/ABC, TNT, and to a lesser extent NBA
In 2014, the current example of the New Orleans defines the public funding apparatus of the NBA as an urban attraction, yet it is the contributions of large corporations that contribute to expanding the event throughout the city. These corporations provide additional funding, which goes into the city through the sponsorship of the NBA. Therefore, the City of New Orleans defines one example of how the NBA can bring massive financial improvement to cities in need of economic improvement through corporate funding and sponsorship. These private corporate institutions not only help to fund local businesses in the urban environment, they encourage large-scale profits from national exposure of the All-Star game as a major sporting event. Beverage companies, TV networks, and other corporate entities are allowed into the city so that they can purchase space in an effort to promote their products to the visitors and the citizens of the city:
On August 3rd in 1949, after a damaging three-year battle to win both players and fans, the rival Basketball Association of America and National Basketball League merge to form the National Basketball Association. In 1949 the NBA had a rival league which is known as the NBL but now as time has went on the NBL is nothing compared to the NBA because it has expanded more than the NBL. If the NBL and the RBA had not been rivals there would not be a NBA right now because those 2 leagues are what make up the NBA. This shows that when the NBA was just started they had problems but overcame and are now better than they once were.
Economists have become increasingly interested in the topic of discrimination in professional sports; and basketball is not an exception. The widely spread perception of the public has been that sports are an oasis of equal economic opportunities for minorities. This belief is strengthened by the fact that minority representation is higher in many major sports teams than in the labor force as a whole....
As I have mentioned to you, there are many components that goes into making the NBA schedule.
Examination of the eight factors of rivalry intensity shows a number of competitors with many of them producing very similar product lines.
in the league agrees to the rules set by the NBA from the beginning. The rules