Strategic Management- Group Project

MLS, FSU ATHLETICS, & POWERADECORAL ARROYO-BAEZ, PETE BARTOSIK, IAN BORDERS, SARA BROOKS, & JACE PARDON

WHY WE CHOSE THESE ORGANIZATIONSAs students at FSU and huge Nole fans we wanted more of an insight on Seminole athletics

Powerade is the beverage sponsor for FSU, as opposed to Gatorade

MLS- with the new Orlando City team and discussion for a Miami team, MLS is growing within the state of Florida

MISSION

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To refresh the world, to inspire moments of optimism and happiness, and to create value and make a difference

FLORIDA STATE ATHLETICS MAJOR LEAGUE SOCCER

POWERADEThe mission of the Department of Intercollegiate Athletics at Florida State University is to

create and sustain NCAA Division I programs for men

and women that are characterized by

comprehensive excellence. Florida State Athletics is

committed to educate, coach, support and inspire all student-

athletes to perform at the highest academic and athletic

standards while demanding good sportsmanship, ethical

behavior, service and personal development

To make soccer, in all its forms, a preeminent sport in

the United States and to continue the development of soccer at all recreational and

competitive levels

VISION

People, Portfolio, Partners, Planet, Profit, and

Productivity

FLORIDA STATE ATHLETICS

MAJOR LEAGUE SOCCER

POWERADE

Create and sustain an Athletics Department that fosters an environment of

integrity and success encompassing the

university community and its stakeholders

The league wants to become a leading American

sport and one of the best leagues in the world by

2022.

MLS executive vice president stated, “The vision that has been

articulated by our board is that by 2022 soccer is to be a pre-eminent sport in North America and MLS is

to be among the best leagues.”

GOAL

Be a great place to work where people are inspired to

be the best they can be. Bring to the world a portfolio of quality beverage brands that anticipate and satisfy

people's desires and needs. Nurture a winning network of customers and suppliers. Be a

responsible citizen that makes a difference by helping build and support sustainable communities. Maximize long-term return to shareowners while being mindful of our

overall responsibilities and be a highly effective, lean and fast-moving organization.

FLORIDA STATE ATHLETICS

MAJOR LEAGUE SOCCER

POWERADE

Becoming a top-flight global soccer league in 11 yearsComprehensive

Excellence

MLS

BACKGROUND

• Began in 1994 at the World Cup – the U.S. promised FIFA that they would create a professional soccer league if the World Cup was played in the U.S.

• 1996 – 10 teams formed the MLS divided into the Eastern and Western Conferences

• 2011 – the MLS grew to a total of 18 teams• 2016 – a total of 20 teams form the MLS

MAJOR LEAGUE SOCCER (MLS)

• Unique operations• Investor view rather than individually owned

• FIFA helped jumpstart• Political goal to develop the sport

Political

ECONOMICAL

• Began with 10 teams • Financial issues after first season• Designated player rule

• David Beckham

SOCIAL

• At first tried to hard to “Americanize” soccer

• Twitter @MLS• Specific media page for

every team

TECHNOLOGICAL

• Teams began renting out and playing in American football stadiums

• Soccer Specific Stadiums• Allowed more revenue

What 2 teams play in these stadiums?

ENVIRONMENTAL

• Began with 10, but currently 20 teams• Orlando City newest club• Trying to create own atmosphere like Premier League

LEGAL

• Single-entity structure• Contracts and teams owned by league• Helps maintain competitive parity

5 FORCES MODEL: MLS

Threat of New Entrants: low

• MLS is sole professional soccer league in the United States and Canada

• Still progressing as a league-growing in popularity

• Established brand identity: not a large consumer base to market too, most already follow MLS

• Talent to create another league, best players are already playing in the MLS

• Funding, it would be expensive

Power of Buyers: low-moderate

• Need fans for growth of league and profits

• Necessary to give fans positive experience to continue consumer loyalty and reputation for future fans

Power of Suppliers: moderate

• Big sponsors such as Chipotle, Adidas, Allstate are important to pay for stadiums, athletic gear, etc.

• Would have to look for alternative investors to build facilities for players

• Replaceable, could create new business deals with different suppliers

5 FORCES MODEL: MLS

Threat of Substitutes: high

• Still going through growth phase-a new player in professional sports leagues

• Choice to follow an alternative professional sport league such as the NFL, NBA, NHL

• Could follow European football league (known as the best soccer league in the world, better players, etc.)

• Increase in technology: substitute attending MLS games by following via online through social media or smartphone apps

• Find another source of entertainment: go to the movies (cheaper, convenient)

Competition Rivalry: low

• The only professional soccer league in North America

• MLS has already established itself as the premier professional soccer league

• Strong brand identity and large fan-base, despite continuing to grow in popularity

• Small market-most professional soccer fans follow the MLS or are familiar with the league

• Pool of talent, the best soccer players already compete in the MLS

• MLS is spread across America with 20 teams

SUGGESTIONS

• Attempt to add their champion to the champions league tournament every year in Europe

• Develop home grown stars and keep them • Instead of the league owning each team having

individual owners like the NFL and NBA• Develop more apps or entertaining sources to

make more accessible for spectators

FLORIDA STATE ATHLETICS

Political• Integrity and success• Maintain amateur status• Title IX, recruiting,

& academics

ECONOMICAL

• Recent success• Football National

Championship 2013, Women’s Soccer champions 2014

• 13 ACC titles since 2013• FSU brand –

Nationally = Revenue

SOCIAL

• Spear-It-Rewards• Points for prizes• Social Campaign• Game-day

Experience• Student tickets

TECHNOLOGICAL

• Champions Club • New JumboTron in

stadium

• Indoor Facility• Soccer, softball, and

beach volleyball locker room renovations expected

• https://www.youtube.com/watch?v=68_r1mTpWtU

ENVIRONMENTAL

• Student-Athletes• Create and sustain success on and off field

• Athletic play while maintaining academic standards

• Demographic of 18-22 year olds

LEGAL

• Stan Wilcox-Athletic Director• Drug testing• Under age/regulations for violations

5 FORCES MODEL: FSU ATHLETICS DEPARTMENT

Threat of New Entrants: low

• Longevity as a high-ranking university

• Geographic barrier: largest university in Tallahassee area with loyal fans

• Publicly funded university

• Well-established brand identity

• Loyal consumer fan base due to its extensive history of success in FSU athletics

Power of Buyers: moderate

• University is publicly funded, coaches and athletics staff are paid by university or sources outside of profits from consumer revenue

• Fan experience is important in maintaining reputation of FSU athletics as well as continuing to gain future fans

• Positive experiences at FSU athletics events are important to appease boosters and others whom donate to Florida State athletics

• Larger men's sports such as football and basketball do play an important role in funding parts of the athletics department; thus consumers play a larger role

5 FORCES MODEL:FSU ATHLETICS DEPARTMENT

Power of Suppliers: high

• Business relationships such as Nike are important

• Nike supplies all the sports apparel in Florida State athletics

• Continued top performance by FSU sports teams is crucial to maintaining the Nike sponsorship

• Private donations and public funds pay for the FSU athletics department

• Important to ensure good relationship with donors, they help fund locker-room renovations, scholarships and new facilities for teams

Threat of Substitutes: moderate

• Find alternate college to support, fair weather fans will leave if FSU is not performing well

• Increase in technology: stay in and watch the game, read highlights off apps on a smartphone

• Choose another form of entertainment: watch professional teams, go to the movies

Competition Rivalry: low

• Dominant athletics school in the local area due to longevity as a university and history of success in athletics

• Loyal fans, FSU alumni and current students

• Massive public university, well known and respected

SUGGESTIONS

• Invest in event only parking – helps with all athletic events vs. academic use parking

• Integration of student-athletes and university student body

• More transparency with donations

HTTPS://WWW.YOUTUBE.COM/WATCH?V=DZNQBJGB9GW

POWERADEPolitical• Complying with the Food and

Drug Administration (FDA)• Medical articles regarding

electrolytes and Brominated Vegetable Oil (BVO)

• Accounting and Taxation requirements

• Law changes• Leadership changes

ECONOMIC• Gains after marketing

contracts• Lebron James• Derrek Rose

• Taxes and laws taking away from company’s gains

• Targeting young athletes to get in shape and to buy Powerade to help replenish their body to keep moving.

SOCIAL• Rivalry with Gatorade

• Pepsi vs. Coca-Cola

• Athlete icons as representatives

• Olympics and popular US pros

• “Cool” for athletes to drink• Ads during sports seasons

• July-April

• Diverse flavors

TECHNOLOGICAL

• Social Media Use• Instagram, Twitter,

Facebook @POWERADE• YouTube (PoweradeUS)

• Used for ads and motivation

• Altered Formula • No Brominated Vegetable

Oil (BVO)

ENVIRONMENTAL

• Plastic Bottles• Best material for product

• Recycling Support• Promote being “green”• Recycling symbols on

bottles• Innovation for reusable

bottles• Powerade

LEGAL• Consumer laws

• US• Other countries sold (+200)

• Safety standards• BVO

• Labor laws• Coca-Cola doesn’t want

bad publicity • ANY LEGAL ISSUES?

5 FORCES MODEL: POWERADE

Power of Buyers: low-moderate

• Target market are active or health conscience consumers

• They desire healthier options to stay in shape and products to aid in their workouts

• Increasing concern over artificial ingredients and what they are consuming in their diets

Power of Suppliers: low

• Coca-Cola, is an industry leading, high value brand name

• Due to Coca-Cola’s power and influence, they have the option to pick and choose suppliers

Threat of New Entrants: low

• Powerade’s parent company, Coca-Cola, is an industry leader

• Have the resources to buy out competition or create competing products

Threat of Substitutes: low

• As with new entrants, the power and influence of Coca-Cola allows them to buy out competition or create products to fill in gaps in their product line.

5 FORCES MODEL:POWERADE

Competition Rivalry: High

• Main rival is with PepsiCo’s Gatorade- current market leader with

POWERADE SUGGESTIONS

• Appeal to their health conscience, consumer base by switching over completely to natural ingredients and flavors, and expanding flavor options of Powerade Zero.

• Advertised the fact that they are a healthier option for a sports beverage

• Return to creative names for flavors to set them apart from Gatorade.

• Take advantage of their celebrity athlete endorsements and create limited addition flavors and expand to their drops.

• Expand into a special line specifically for those who lead more active lifestyles and target pre-, during, and post-workout products to help athletes refuel and recover.

COMPARE & CONTRAST

• Powerade sponsors both FSU Athletics & MLS• All are for profit entities yet for two of them, athletics is

not their first priority • Marketing to sports or an athletic lifestyle is vital in their strategic

management

• All 3 entities have invested interest in the state of Florida

• Each have different end goals• FSU – student-athlete well-being• MLS– grow soccer’s popularity • Powerade – being an industry leader in sports beverages

Were you paying attention?

JEOPARDYMajor

League Soccer

Florida State

University Athletics

Powerade

Impress Dr. Kim

for Extra Credit

Powerade

Bragging Rights

Bragging Rights

Powerade

Impress Dr. Kim

for Extra Credit

Bragging Rights

Powerade

Impress Dr. Kim

for Extra Credit

Which famous athlete is the star of

the “Streetball Court” commercial

series for Powerade?

How many flavors does

Powerade offer in their

Powerade Zero line?

What are the approximate market share

percentages of Gatorade and

Powerade?

What is the name of the indoor

practice field?

Who did the FSU women’s soccer team lose to in

2015 Semifinals?

At what school did Stan Wilcox play

collegiate basketball?

In what year did the MLS start?

Currently, how many teams

form the MLS?

HOW did the MLS get its

start?