Aaron
Rodriguez
September
8, 2020
Class
Make-up Assignment
Cohort
21S
Learfield IMG
Learfield IMG is a sport marketing and ticketing company located in
the agencies, consultants, and service providers sector of the sports industry.
Their vision is to build the team, grow the company, have fun., and love and
serve others Their mission is to place tremendous emphasis on people, providing
excellent services to their partners, and cultivate a company that creates
innovative solutions. Their core values align with their mission statement and
embody these pillars through their company culture. Their first pillar is
“Build the Team '', they do this by understanding that their work is a collective
effort and recruit great people for those goals and once they are recruited
they embrace them into their company fully by encouraging each other and
considering everyone like family. Their second pillar is “Grow the Company”
they do this by serving their employees so they can focus on serving their
customers, being agile and open-minded, and looking for the win/win. Their
third pillar is to “Have Fun”, they do this by celebrating victories that are
big and small, dreaming big-and chasing the dream, and figure out ways to make
work fun for everyone. Their final pillar is love and “Serve Others”, they do
this by doing what's right, being truthful, candid, and present, and by being
passionately friendly and curious
The customers that Learfield IMG must cater to are conferences,
networks, and universities. They provide a multitude of services to them and
connect them with companies that would be interested in using the school's
platform to enhance the image of their product and create value for both the
university and the product. With the merger between Learfield Sports and IMG
College, they both bring unique resources and capabilities to improve their
business. Learfield Sports brings their reputation and clientele while IMG
College brings its skills and expertise in ticketing operations. Given these
skills and clientele base, they now have the capabilities to reach more
customers at a higher level of service.
Conferences generate the most revenue for them as they not only give
them access to the universities but also special events such as bowl games.
They have been focusing on the inbound logistics of the sports industry by
investing and expanding into athletic training facilities both in operations
and ownership. Despite this focus on inbound logistics, their greatest
opportunity for growth is with broadcasting as they currently broadcast 240
sports in 200 countries. With their current broadcasting locations and the
technological growth in the industry, there is a great opportunity for growth.
In the industry, there are five key competitive forces and they are
buyer power, supplier power, the threat of substitution, the threat of new
entrants, and competitive rivalry. The first is buyer power, buyers have very
weak power in the industry. Since Learfield Sports and IMG College merged
buyers in the college sports industry have had fewer options to get their
content out which significantly reduces buyer power. The second is supplier
power, supplier power is also weak as entry barriers are high and there is a
small pool of competitors. This consolidation has made the industry tough for
other companies. This is the primary reason for weak threats to substitution as
well as threats of new entry. To find the same product there is a limited number
of places people can go and there is little differentiation between firms.
Going outside the ticket sales market of Learfield IMG could also be high as
well as risky because you must rely on the trust of an unknown seller on the
street or other online forums. This is also the reason why there is a weak
threat of new entrants. This difficulty in becoming a trusted source and
building a reputation is the reason for a weak threat of new entry. There are
too many obstacles for a company to be competitive in the industry. Despite
being weak in all the other forces the industry is strong in the competitive
rivalry. With such few companies in the industry due to the merger of IMG and
Learfield Sports, this has created an intense rivalry in the industry.
Companies must find strategic advantages to differentiate their product and
become attractive to buyers.
The industry is very competitive and to succeed there are three key
factors. Those factors are partnerships, ease of ticketing platform, and
diversity in services. The first is partnerships. Partnerships are essential to
the success of a company as they will be providing the content of games that
will attract sponsors, ticket sales, and broadcasting rights. Companies must
have strong partnerships with networks as well because they will be the ones
who can air games provided by the Universities and Bowl Games by the
Conferences. The second key success factor is the ease of a ticketing platform.
Ticketing platforms are a key revenue generator, not only for the ticket sale
numbers but also these are essential for broadcasting rights deals. This shows
the level of interest in teams and having an easy to navigate platform will
increase the willingness of fans to come to games and enhance their
experience.
The final
factor is diversity in services, Universities and Conferences will want to be
able to come to one company for all their needs, and diversity of services will
allow them to cater to the needs of their clients.
Business
Model

AEG
AEG is a sporting and music presenting company that owns and runs
venues and other prime real estate and provides content and affiliated
services. They are located in the sports facilities sector of the sports
industry. However, they also touch on the agencies, consultants, and service
providers sector of the industry as they provide event management services.
Their competitors include ASM global, The Madison Square Garden Company, and
Live Nation. All three compete with them directly as they are all venue
operators and live experience operators. However, on the team ownership aspect
of AEG, they compete with the other teams in their respective leagues.
Their main
resource is their venues as this allows them to coordinate their events and
generate their revenue. This requires them to have the capabilities to operate
the events. These capabilities include their reputation of logistical knowledge
and understanding of the respective markets by knowing what events will attract
people to their venue. These become their competitive advantage over other
competitors as their multiple venues allow them to host events in many
different cities while their logistical knowledge and reputation make them an
attractive operator for live events. This makes them a perfect fit for the
industry because they not only have the expertise for events, but they also
have the locations to hold events anywhere in the world.
Given the massive holdings and expertise needed to become successful,
there are five key success factors needed to compete in the industry. Those
factors are value and quality, venues, hospitality factors, information
dissemination, and marketing and sales. The first is value and quality, this is
important for success because this is the basis of a company's reputation. They
must produce value to those whom they operate events for at a high quality to
make them a returning customer. The second factor is venues, venues allow a
company to be able to extend its reach. Having more venues in multiple
locations allows a company to book a whole tour for music groups or to be the
venue for a multitude of sporting events and this will increase the variety of
events the company can operate. The third factor is hospitality factors, not
only does an operating company have to have a good reputation and many
locations but they also have to be able to execute the events when they are
given the contract. Their execution of hospitality will leave a lasting
impression on patrons of the event and will make the people hosting the event
be happy with the operator. The fourth factor is information dissemination, in
operating an event there are a lot of moving parts to the success of an event.
This means that everyone will have to be on the same page or else the event
will fail due to confusion. Information dissemination is the best way to do
this because it allows everyone to know what is going on in all aspects of the
event at all times. The final factor is marketing and sales, operating
companies must be able to market and sell their venues to event managers. This
can be achieved with previous event success and being able to sell them on the
fact that they can do it again. The company must also be able to market that
they can make the event even better and show the ideas that they have to excite
more people to want to come to the live event.
In the live event presentation industry, there are many political,
economic, social, technological, environmental, and legal factors. The first
factor is political when constructing or renovating a venue a company must
understand that they need to work with the city to finish the project. They
must be able to work with city officials to receive proper funding as well as
follow any codes and regulations they may have. The political climate is not
only important for new venues but it is also important for operating events.
Political factors are important to understand as venue operators must
understand the city officials and whether or not they will be helpful in their
pursuits with their venue. The second factor is economic, the economic factors
are very important a venue must understand if the city has a strong economy to
understand if they will develop a new venue or if they will bring a large
event. Either a city must have the infrastructure to support the event which
will mean they have a strong economy. The city must have proper lodging,
transportation, and ancillary experiences to complement the venue and the
events hosted there. A strong economy is also important because they will need
to understand if they can sell tickets in the city to bring people to the
venue. If the economy is strong then the people within the city will be coming
to the venue. The third factor is social, the social factor is very important,
this will determine what events that a venue is willing to operate in certain
markets. They must understand what the community around them is interested in
and what social experiences they will bring to enhance their time at the venue.
The fourth factor is technological, technological factors are very important.
Venues and operating companies must be able to have the latest technology at
their fingertips as they need to make sure that they have the proper equipment
for the planning and execution of events as well as cutting-edge technology to
excite fans about coming to their venue. The fifth factor is environmental,
environmental factors are extremely important to new venue construction.
Companies must make their venues environmentally sustainable as more fans of
events and the public at large grow in concern over this issue. Environmentally
sustainable venues will be able to bring in more events and people to their
venues. The final is legal factors, Ordinances will need to be followed to make
sure that everyone is safe, and the proper authorities will have to be present
to ensure safety. The legal factors are important in maintaining order and
ensuring safety.



