MANCHESTER UNITED: THE GLAZER TAKEOVER THE GLAZER TAKEOVER Complied By: Mehak Kohli SMBA 08116 Praful Anchaliya SMBA 08155 Rohit Jain SMBA 08189 Sheetal Vishnoi SMBA 08216
Oct 28, 2014
MANCHESTER UNITED: THE GLAZER TAKEOVERTHE GLAZER TAKEOVER
Complied By:Mehak Kohli SMBA 08116Praful Anchaliya SMBA 08155Rohit Jain SMBA 08189Sheetal Vishnoi SMBA 08216
INTRODUCTION
o The world’s no.1 football club – Founded in 1878
o Global fan base – Manchester United has 333
million fans worldwide
o 190 million fans alone from Asia
o Manchester United is a household name across the world
INTRODUCTION ( Cont.)
o Manchester United is synonymous with success and leadership
o Winners of 3 European Club Championships, 18 English League titles and 11 FA Cup titles – more than any other team.
o Brand Values: Successful – In Control – Passionate – Adventurous – Quality
o Manchester United – a truly global sports brand!
VISION
UUnited…committed passion for success
NNon-discriminatory…accessible to all
IInnovative…to be ‘first to the ball’ at all times
TTeam oriented…working together with dedication
EExcelling…to be the world-class leader
DDetermined…in pursuit of success whilst being accountable
MAN UTD DELIVERS
• Global Reach
• Continuity
• Visibility
• Recognition
• Trust
• Respect
• Brand Consciousness
• Propensity to buy
ACTIVITIES AND CORPORATE STRUCTURE
REVENUE GENERATION
1. Match day (29%)– Domestic League and Cup Tickets– European Match Tickets– Travel, Programmes, Catering and Hospitality
2. Broadcasting and Media (44%)– TV deals for Domestic Matches– TV deals for European Games– TV rights Worldwide
3. Sponsorship and Commercial (27%)• Sponsorships• Non Matchday Activities (Catering Tours)• Branded Products• Other Activities (Finance, Betting)
Turnover breakdownTurnover breakdown
129.6129.6
146.1146.1
20002000
20032003
Turnover £mTurnover £m
20012001
20022002
20052005
116.0116.0
173.0173.0
157.1157.1
20022002
33.833.8
55.155.1
Operating Profit Operating Profit £m£m20002000
20032003
20012001
20052005 46.146.1
FINANCIAL ANALYSIS
36.136.1
40.040.0
INDUSTRIAL ANALYSIS
The Paradigm
Environmental Forces – PESTEL
Analysis
Organisational Capabilities – Internal
Analysis
Strategy
Performance
PARADIGM
INTERNAL ANALYSIS
Resources and Resources and CapabilitiesCapabilities
• TangibleTangible• IntangibleIntangible• Brand EquityBrand Equity
CoreCoreCompetenciesCompetencies
CompetitiveCompetitiveAdvantageAdvantage
Above-AverageAbove-AverageReturnsReturns
RESOURCES
Intangible Resources Tangible ResourcesStructural Assets Old Trafford Stadium
EPOS Equipments• Club Vision, Culture and Goals Manchester United Soccer Academy• Managerial systems
Relational Assets
• Club fans and Club image
• Season ticket sales
• Sponsorship and Supporters
• Promotion
• Brand
Human Assets
• Expertise of football managers
• Expertise of players
Intellectual Property
• Broadcasting rights
CORE COMPETENCIES
COMPETITIVE ADVANTAGE
• Strong Leadership – Sir Alex Ferguson
• Leaders in promoting and exploiting brands Media Players Supporters(Independent Manchester United Supporters Association, Manchester
United Supporters' Trust, Red Army)
• Leader in Internationalization
• Massive Fan Base
FERGUSON’S TRACK RECORD
PESTEL ANALYSIS
VALUE CHAIN ANALYSIS
SERVICE
Customer
Service
Website
SERVICE
Customer
Service
Website
MARKETING
AND SALES
•Sponsorship
•TV Deals• Endorsements
•
MARKETING
AND SALES
•Sponsorship
•TV Deals• Endorsements
•
OUTBOUND LOGISTICS
- Football
Branding
- NIKE
Shirt
Deal
- Season
Tickets
OUTBOUND LOGISTICS
- Football
Branding
- NIKE
Shirt
Deal
- Season
Tickets
OPERATIONS
-MU-Mobile-MU Finance
-Man U
TV
OPERATIONS
-MU-Mobile-MU Finance
-Man U
TV
INBOUND
LOGISTICS
Transfers
of players
INBOUND
LOGISTICS
Transfers
of players
Players & Coaching StaffPlayers & Coaching StaffPROCUREMENTPROCUREMENT
Theatre of Dreams
Theatre of DreamsINFRASTRUCTUREINFRASTRUCTURE
-Alex Ferguson
- Bonus
System
-Alex Ferguson
- Bonus
System
HUMAN
RESOURCE
MANAGEMENT
HUMAN
RESOURCE
MANAGEMENT
Margin
Margin
Margin
Margin
BRAND STRENGTH
Domestic Merchandising presence at other football clubs Established presence in London stores
International Seeking new opportunities in the Far East and North America Deals signed with NY Yankees and NJ Jets Marketing deal signed with Nike
Media partnerships PayTV revenue with MUTV Internet presence enhanced and ecommerce enabled Personalised content delivered direct to fans
EUROPEAN/CHAMPIONS LEAGUE
BRAND RANKING(2009)
COMPETITOR ANALYSIS
• Competitors not fully in balance
Man U ahead in its services/products available to the buyers
• Some of the products at a mature stage of the product life cycle
New products/services being introduced to revitalise its market growth
• Man U reaching out to other parts of the world
Rivals have little or no contact Man U dominates the market at those destinations Man U differentiates into the US market as well as international tours within Asia
CHALLENGE
Whether Glazer could do anything to enhance Man United’s performance,
either financially or on field???
RECOMMENDATIONS
o Reduce Spending Reduction in player’s fixed salaries
o Increase Income Increase price of season tickets Renewal of sponsorship contracts Enable them to allow more funds for transfers, and therefore win more
competitions. Appearance of team’s goals on users screens Create higher level of enthusiasm(organization and fan base) Income from property assets Increase Affiliated Supporters(1/3rd from gate at matches, another 1/3rd
from TV and remaining 1/3rd from marketing)
o Refinance Debt
STRATEGIC RECOMMENDATION – DEBT RECOVERY
RECOMMENDATIONS (CONT.)
o Creating clear objective
o In-depth organizational change
o Maintaining aggressive attitude
o Converting more fans to customers
o Maintain the playing success
o Leveraging the global brand
THANK YOU!!!