XFL case study
American football has surpassed baseball in recent years as “America’s past time.” It has become part of everyday life, with the NFL surpassing three billion dollars in revenue per year, more than one billion more than its closest competitor. It is thought of as gritty, physical, and all around fun just as most Americans like to be thought of. For decades the NFL has dominated the world of football, but despite all of this, it has come under attack in recent years because of the increasing mediocrity, cost to attend games, skyrocketing player and coaches salaries, squabbling owners, and lack of loyalty by players to their respective teams. With this, Vince McMahon, the founder of the WWF, saw an opportunity and took charge to introduce a new and controversial professional football league called the XFL. In looking at Porter’s Five Forces, we conclude that the barriers to entry are high with the startup costs of the endeavor for the first year being roughly $100 million dollars. Next, in looking at the threat of substitutes, we can conclude that it is moderate because of the many different types of entertainment available, be it other activities or sports. There are also other football leagues available to the
In extending our SWOT analysis, we will next take a look at the resource based view of the league. The XFL’s tangible resources look strong. It has a large cash account with two large and very financially stable corporations backing it in the WWFE and NBC. In addition, there is a considerable amount of support from perspective advertisers, and commercial ads were sold quickly. The leagues ability to raise equity or borrow capital appears to be strong. Next, the physical properties also appear to be strong, with teams in eight different locations with large stadium capacities and excellent training facilities. Analyzing the intangible resources leads us to the conclusion that they are as well strong and plentiful. On the human side, there is a conflict as the managerial skills appear to be quite strong with many of the personnel working for the XFL having worked in other competitive football leagues. However, the level of talent that is displayed by the players is weak. The talent pool is drained out by the higher salaries in other leagues, specifically the NFL, and with no effort to try to attract marquee stars; the level of competition is not that strong leading to mediocre play at best. The innovative and creative side of the league however, remains one of its strongest assets largely in part due to McMahon’s creative approaches. The whole idea and concept of the league is creative, maybe even ahead of its time. This reputation of creativity and innovation was in large part a success because of McMahon’s success with his wrestling business. Through its organizational abilities, the XFL was able to use the competencies it employs to transform inputs into outputs. The main strategy in implementing this new league and making it a success was not only bringing back “smash-mouth football”, one that in the eyes of many had been missing, but a very aggressive marketing campaign which ironically can be called by some “smash-mouth marketing”. Every week there seemed to be a new announcement, as the team at XFL, partly because of strategy and partly because of new issues arising every week wanted to create a buzz and receive plent
Some topics in this essay:
WWFE NBC,
XFL WWF,
XFL American,
Football League,
Five Forces,
TNN UPN,
Opportunities Threats,
Vince McMahon,
Strengths Weaknesses,
football leagues,
target market,
environmental factors,
play weeks,
talent pool,
level competition,
swot analysis,
football league,
appear strong,
competitive football,
competitive football leagues,
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Approximate Word count = 1461
Approximate Pages = 6 (250 words per page double spaced)
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