Manchester United - The Glazer take over

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!!!