MANCHESTER UNITED PLC
Introduction
The football industry in UK is thriving and seemingly been successful in the past years. This brought about the interest of this study on the UK football industry as a viable business. For this study, the discussions will be based on the case of Manchester United, one of the more famous and successful football clubs in the country. The major information acquired in this study is taken from Manchester United’s official website. Moreover, the data acquired from the website is to be used as the basis for the analytical tool to be used in examining the capacity of the company.
Analysis of the Company
The SWOT Analysis is possibly the most popular instrument utilized in strategic planning and organizational problem solving. SWOT indicates the Strengths, Weaknesses, Opportunities, and Threats of a firm. The derivation of the SWOT contraction, nonetheless, is difficult to understand. (2002) affirmed that the Harvard Business School scholars were utilizing the notion in the 1960s. On the contrary, (2002) presents the growth of the SWOT Analysis perception. Regardless of its vague beginnings, SWOT Analysis is utilized for numerous functions and implemented to different units of examination.
Strengths
The major strength for Manchester United is their brand consciousness, Manchester United is exceptionally recognized globally, and if advertised as the national team with international sponsors. This consequently implies that any merchandise that they put in the market, with the team name and emblem will be immediately identified by their fans which could arrive to a million. Nevertheless, the team requires guaranteeing that they are still focused on what there fans and the consumers wish for. Which such extensive identification it may be appealing for Manchester United to employ a product leaning method to marketing, which may not possibly bring about their merchandise not doing as profitable as it could do.
By reason of the great fan base, ticket sales is also considered as a strength for Manchester United, as there is a big waiting list for passes for every match, and with the new expanded arena, the income from ticket sales is bound for increase over the coming years. Nevertheless this is not the sole source of income for Manchester United and products is still required to be taken into account as the major part of total revenue. Manchester United similarly possesses great distribution channels with numerous of retail stores globally. This will be tremendously helpful when introducing new products. As these recognized connections are previously prepared, Manchester United have to guarantee that they are employing these channels to the full capability, and that these links for circulation can be employed to feedback data in addition to to flow out the products.
Weaknesses
The major weakness that has been identified based on their website is their products and product variety. It is obvious that they have introduced a lot of diverse products at numerous different occasions. There is an issue though whether the fans were consulted in this context. It seems that MU has introduced a broad variety of products from jerseys to Credit Cards. It has been recommended that the club has merely exploited the more noticeable income channels, and consequently money-wise it would be more valuable to perform more research in this field. The club evidently requires looking into their existing product collection, from this they will be capable of situating their products, employing instruments like the, and it will allow the club to recognize which of their products are thriving in the market. It is obvious that even though the present products is selling well, this is a field where there will constantly be room for development, to suit their fans prerequisites in a lucrative manner for the club.
Another weakness for Manchester United is that currently the club has been so flourishing, and it is now working on such a huge level, there is a distressing estimation that the club has now lost its origins, and it is no longer concerned with the game of football, but all about proceeds. Unconstructive outlooks such as this can have a harmful effect on the fans. Even though providing Manchester United carries on to performing well, this may not bring about too much apprehension for the club, as it has global support, however it is still required to be taken into account.
Opportunities
The key opportunity for Manchester United at the moment is the penetration to the American market. There is an opportunity in the proximate future to structure the coalition with on of the world’s most well-off team in sports, the New York Yankees. This will signal enormous merchandise channels in America, and provide Manchester United the lead over all other Football teams in the American context, presenting their product to a new market. Even though there is a superior height of risk concerned in tendering their products over to the US, then entering the existing market, by reason of the coalition with the Yankees, this danger is condensed
Threats
Manchester United is in a very firm site, as they have no direct dangers from any players in the industry. There is a huge breach connecting Manchester United and the subsequent strongest competitor. Nonetheless there are a number of dangers to Manchester United that has to be taken into account. A threat to Manchester United at present is that the Change of leadership in the team. Manchester United is required to guarantee that this will not affect the sales of its merchandise. Another less direct threat to Manchester United is that there have not been sufficient finances put into academies and junior football, from where prospective players would originate. Nonetheless, Manchester United has spent in a playing academy to teach potential football players.
Business Strategy
The foremost field of research that is required to be taken into account is new product development and research on the whole concerning Manchester United’s existing product selection. This is required to be examined principally as if Manchester United requires guaranteeing that they are doing well in their present market prior to going into a new market. At first Manchester United will require investigating into their existing product selection, with such a broad variety of products it is vital for Manchester United to assess which of their products perforating well in the market
Conclusion
Manchester United is in a very competitive spot at present, nonetheless they require to be cautious that they are not getting self-satisfied and that they are focusing on the market, and the requirements of their clients and followers. By implementing the research into their markets it will allow them to
build up products for the clients, which will bring about sustained
support from the fans and success.
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