6LMS0127: Entrepreneurship in Sports Business Management Assignment Sample

Introduction Of Enterprise and Entrepreneurship in Sports Business Management

In the year 2021, a new athletic organisation with the catchy name Game Changer Sports was established. The company's goal is to completely transform the sports industry by providing a comprehensive platform for sports participants, including coaches and fans. The company's headquarters are located in New York City, and its workforce is comprised of seasoned experts that are passionate about both technology and sports. (Nová, 2015) Among the various services that Game Changer Sports offers, some of the more notable ones are data analytics, fan engagement, and athlete management. The company is in a strong position to capitalise on the opportunities that have been identified in the market. In this business plan, Game Changer Sports will outline its recommended strategy for marketing as well as its financial projections for the next five years. The plan will conduct an analysis of each component of a successful business plan, such as an examination of the stakeholders, assessments of the micro and macro environments, and entrepreneurial strategies.

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Overview of the organization

Game Changer Sports, a profit-driven enterprise, aims to revolutionise the sports sector by providing enthusiasts with a novel and distinctive approach to engage with their preferred athletes and teams. The enterprise was founded in the year 2022 and currently sustains a workforce of 20 individuals, comprising of professionals in marketing, software engineering, and enthusiasts of sports.

According to González-Serrano et al. (2017), the primary competitors of the company are traditional sports marketing and advertising enterprises that utilise conventional media platforms such as television and print media to attract and interact with fans. Game Changer Sports aims to differentiate itself from competitors through the implementation of advanced digital technologies, with the goal of providing sports enthusiasts with a captivating and fully immersive experience. Major sports leagues like the NBA, NFL, and MLB, and individual sports clubs and athletes are just a few of Game Changer Sports' partners in the sports business. Through these collaborations, Game Changer Sports can connect with important sports industry players and have access to exclusive information. Game Changer Sports is in the growth stage of its organizational evolution after only receiving funding from venture capitalists to create and deploy its platform. The company has a clear future goal and intends to increase the scope of its services in the years to come.

Environmental Micro and Macro Factors Impacting Game Changer Sports' Marketing Plan

Analyzing the micro and macro environmental factors that impact the organization's performance is crucial to create a successful marketing strategy. The following crucial elements will affect Game Changer Sports' marketing plan during the following five years.

Micro Environmental Factors

Customers

The success of Game Changer Sports is highly dependent on its customers, who are fans of various sports. According to Jones et al.'s research from 2020, in order for an organisation to develop individualised marketing strategy, it must first have an understanding of the preferences and behaviours of its customers. Through the use of digital platforms and social media, Game Changer Sports is able to communicate with its customers and give a tailored sporting experience to each individual. In addition, the organisation can use data analytics to understand more about the behaviours and preferences of customers, which can then be used to generate marketing efforts that are more specifically targeted.

Competitions

Game Changer Sports' primary competitors are the more conventional sports marketing and advertising companies. These companies hold a large portion of the industry and have well-established relationships with a variety of sports leagues and teams. GameChanger Sports has the goal of distinguishing itself from its competitors by providing services that are unique and innovative. In order to provide fans with a more immersive sporting experience, the organisation may make use of cutting-edge technologies such as virtual and augmented reality.

Suppliers

Suppliers of GameChanger Sports are the technological companies that are responsible for providing the basic infrastructure of the platform. According to Rattnet et al. 2021, in order for the company to provide a satisfactory experience for its customers, it must make certain that the reliability and safety of its technological partners. GameChanger Sports is able to collaborate with digital companies in order to develop novel and innovative features for its platform.

Macroenvironmental influences

Economic factors

Economic variables, including GDP expansion, inflation, and consumer spending, can impact GameChanger Sports' marketing plan (Pellešová, 2016). Consumers may spend less on leisure pursuits like sports during a recession. GameChanger Sports can provide value-added services like discounts and promotions to draw clients during lean economic times to reduce this risk.

Legal and Political Factors

Government regulations and alterations to tax laws are examples of political and legal aspects that may impact GameChanger Sports' marketing plan. For instance, modifications to data privacy rules may affect the company's capacity to gather and utilize consumer data for marketing functions. GameChanger Sports must keep up with regulatory developments and modify its marketing plan.

Social and cultural factors

The marketing approach of GameChanger Sports may be impacted by sociocultural variables, including shifting views towards exercise and health (Yusuff, 2019). The organization must keep abreast of shifting sports and health trends to create compelling and pertinent marketing efforts. For instance, GameChanger Sports can use the rising popularity of e-sports to draw in a younger audience.

Technical factors

Technological developments like digital technology may give GameChanger Sports new chances to interact with customers. In order to be competitive, the organization must be flexible and able to adopt new technology. GameChanger Sports can provide its consumers with personalized sports experiences by utilizing cutting-edge technology like artificial intelligence and machine learning.

In recent years, technological improvements have significantly contributed to a change in the sports sector and the considerations above (Delienset. al 2015). Digital technology developments have given sports organizations new options to interact creatively with their audience. Utilizing technology to provide clients personalized sports experiences can give GameChanger Sports a competitive advantage.

Marketing approach

Taking into account the organization's strengths, limitations, possibilities, and threats, as well as the results of an analysis of GameChanger Sports' micro and macro environments, the following marketing plan is suggested:

• Evaluating the efficacy of the advertising activities and making any necessary adjustments based on the findings of the data analysis.
• Communicating with members of the defined demographic target audience through the use of search engine marketing and social media.
• Tailored Advertising: GameChanger Sports should have a primary emphasis on targeted advertising in order to communicate effectively with the appropriate demographic. This can be accomplished by the company by conducting market research to identify the demographic that is most likely to be interested in the products and services that it provides.
• Branding and Visibility: GameChanger Sports needs to grow its brand in the industry and boost its visibility in order to reach more potential customers (McAdamet.al 2016). This will allow GameChanger Sports to reach more customers. This can be accomplished by the company by:
• Creating a brand logo and using it consistently across all of the company's communications.
• Utilising the tools offered by social media platforms in order to extend its audience reach and cultivate new connections.
• Collaborating with notable figures in the business as well as influential individuals to spread awareness and promote the brand.
• Gaining visibility to a bigger audience through sponsoring key athletic events and tournaments.
• Personalised Customer Experience: GameChanger Sports has the ability to differentiate itself from its competitors by providing a personalised customer service experience. The company can accomplish this by:
• Developing relationships with industry-leading producers and brands of athletic goods in order to make exclusive deals and price reductions available to customers.
• Increasing neighbourhood awareness of the organisation by providing financial support to local athletic leagues and other community events.
• Working together with other sports leagues to promote one another's products and services.
• Partnerships and sponsorships: According to Ratten and Jones 2020, GameChanger Sports may increase its visibility and appeal to a greater number of people by forming partnerships and securing sponsorships. This goal can be accomplished by the corporation by:
• Personalizing marketing messages and promotions by using client data.
• Making personalised recommendations to clients based on their preferences and previous purchases.
• Providing exceptional service to customers in an effort to encourage repeat business.
• Material marketing: In order to bolster its brand and bring in new customers, GameChanger Sports can create and distribute content that is engaging and informative for its target audience. This goal can be accomplished by the company by:
• Producing podcasts, films, and blog articles that educate the audience that they are targeting.
• Utilising strategies for search engine optimisation (SEO) to improve its presence on search engines.
• Distributing user-generated material with the goal of boosting credibility and social proof.

By putting into action this marketing plan, GameChanger Sports will be able to improve the exposure of the firm, bring in new customers, and cultivate customer loyalty, all of which will lead to an increase in sales and profits.

Current financial situation

It must consider GameChanger Sports' current financial situation, the state of the market, and potential future growth to forecast its financial performance over the next five years. The basic financial forecasts for GameChanger Sports are as follows:

Revenue Forecast:

Over the next five years, GameChanger Sports' revenue is anticipated to increase at a compound annual growth rate (CAGR) of 15%. This growth rate is based on the anticipated rise in demand for sporting goods and services brought on by the rising global popularity of sports and fitness pursuits.

Year 1: $10,000,000 Year 2: $11.5,000,000 Year 3: 13.2,000,000 Year 4: 15.2,000,000 Year 5: $17.5,000,000

Cost Estimation:

GameChanger Sports' cost of goods sold (COGS) is anticipated to rise alongside revenue growth. For the first year, we have projected a gross margin of 50%, which is anticipated to increase to 55% by year 5 due to economies of scale.

Year 1: $5,000,000 Year 2: 5.5,000,000 Year 3: 6.5,000,000 Year 4: 7.5,000,000 Year 5: $8.6,000,000

Projected Operating Expenses:

Over the following five years, GameChanger Sports' operational costs are anticipated to rise due to the company's growth. Operating expense growth has been estimated at 10% annually.

Year 1: $2,000,000 Year 2: 2.2,000,000 Year 3: 2.4,000,000 Year 4: 2.7,000,000 Year 5: $3,000,000

Future Projected Net Income

Over the next five years, GameChanger Sports' net income is anticipated to rise based on the revenue, cost, and operating expense projections. An anticipated tax rate of 25% has been used.

Year 1: $3,000,000 Year 2: $4,000,000 Year 3: 4.3,000,000 Year 4: $5,000,000 Year 5: $6,000,000

Financial Projections:

Over the following five years, GameChanger Sports' cash flow is anticipated to be favourable. 20% of revenue is what we have estimated as the working capital requirement.

Year 1: $4,000,000 Year 2: $5,000,000 Year 3: 5.5,000,000 Year 4: 6.5,000,000 Year 5: 7.5,000,000

These financial estimates are predicated on the suppositions that the sports sector will continue to expand, that GameChanger Sports will maintain its market share, and that its business operations will be effectively managed. Due to different factors like the economy, competition, and unforeseen events, the actual outcomes may differ from these projections.

Stakeholders and how they could affect your business plan.

Individuals or organizations that can directly or indirectly affect an organization's decisions and actions are called stakeholders (O'Leary, 2015). Formulating a successful entrepreneurial strategy must consider a number of stakeholders in the case of our chosen sports organization. Athletes, supporters, sponsors, the media, the government, and the community are some of these stakeholders.

One of the most important stakeholders in a sports organization is the athlete. They are the ones that compete on the team's behalf and draw support from fans and sponsors. Ensuring the athletes are well cared for and given the tools, instruction, and support required to perform at their peak is crucial. Failure to do so could result in subpar performance, unhappiness, and a reduction in sponsorship and fan support.

Any sports organization must consider fans as important stakeholders. With the help of ticket sales, item sales, and media attention, they primarily generate income (Pellegrini et al., 2020). To create efficient marketing methods that appeal to followers' interests, it is crucial to comprehend their requirements and preferences. Long-term prosperity and financial security depend on fan participation, loyalty, and contentment.

Another crucial stakeholder in a sports organization is a sponsor. They contribute the money required to keep the business operating and anticipate receiving brand awareness and improved revenue in exchange. By giving sponsors the desired marketing possibilities and highlighting the benefits of the collaboration, it is crucial to establish and maintain good relationships with sponsors.

A major stakeholder in a sports organization is the media. They offer in-depth coverage, which raises the organization's profile and popularity (Bjärsholm, 2017). It is crucial to guarantee favourable media coverage by giving them the knowledge, access, and tools they need to communicate the organization's narrative effectively.

Another crucial stakeholder in a sports organization is the government. They give finance, infrastructure, and regulatory support to ensure the organization runs smoothly. Following rules and participating in civic activities is crucial to keep good relations with the government.

An important stakeholder in a sports organization is the community, particularly at the local level. They give the organization the backing, fidelity, and fan base it needs to succeed. It is crucial to interact with the community through a variety of projects, including youth development programmes, charitable events, and community outreach programmes.

Determine their level of importance and influence on the organization's success while assessing the status of the detected stakeholders (Da Silva & Las Casas, 2017). Perform a stakeholder mapping exercise to ascertain each stakeholder's level of influence and interest. A suitable approach to satisfy their requirements and concerns can be developed by identifying the most important stakeholders

According to the stakeholder mapping study, athletes, supporters, and sponsors are the most important stakeholders for the sports organization. To ensure long-term success and financial stability, it is crucial to concentrate on creating efficient solutions to fulfil their demands and concerns.

In conclusion, stakeholders are essential to a sports organization's success. To create a successful entrepreneurial strategy that responds to their demands and concerns, it is imperative to assess their status and degree of influence (Shilbury & Rowe, 2020). The sports organization can forge deep bonds and achieve long-term success by concentrating on the demands of key stakeholders, including athletes, supporters, and sponsors.

Evaluation of potential entrepreneurial tactics

Evaluation of potential entrepreneurial tactics selected for GameChanger Sports' marketing plan, including its advantages and disadvantages and any pertinent examples:

• Partnership and sponsorship: Forming alliances with other companies or organizations in the sports sector is one possible tactic for advancing and expanding the GameChanger Sports brand. Obtaining sponsorship relationships with well-known companies may also be necessary for this. This tactic's ability to boost brand recognition and draw in new clients is one of its advantages. For instance, Nike's association with the NBA increased brand awareness and revenue (King, 2016). The drawback of this tactic is that it can be costly and challenging to secure high-profile sponsorship arrangements. Additionally, the brand's reputation could suffer if a partnership or sponsorship agreement is not a good fit for the business.
• Influencer Marketing: Influencer marketing is another possible tactic to further the GameChanger Sports brand. This entails collaborating with people with a sizable social media following and getting them to promote the company. This method can improve brand recognition and attract new clients (Watson et al., 2018). In order to market their sportswear range, Adidas, for instance, collaborated with Instagram celebrity Selena Gomez. The drawback of this approach is that working with well-known influencers can be expensive. Additionally, the business's reputation may suffer if the influencer's image does not complement that of the GameChanger Sports brand.
• Sponsoring sporting events and competitions: is an additional tactic that could be used. This could be supporting a neighbourhood sports team, occasion, or even more significant events like the Olympic Games. This method has the advantage of helping to expand brand recognition and reach a large audience (Rundh & Gottfridsson, 2015). For instance, Coca-Cola has long supported the Olympic Games, which has raised brand awareness and expanded its reach to a global audience. The drawback of this tactic is that it might be expensive to sponsor significant events. Additionally, the event might not offer a decent return on investment if it is unsuitable for the GameChanger Sports brand.
• User-Generated Content: Promoting user-generated content is another possible tactic. This entails encouraging clients to blog or post about their interactions with the GameChanger Sports company on social media. This method has the potential to boost brand engagement and foster a sense of community, which is a plus. For instance, the #thesweatlifehashtag is used frequently by Lululemon customers to describe their social media experiences. The drawback of this tactic is that it might be challenging to regulate the content that users share. Additionally, the reputation of the GameChanger Sports brand could suffer if customers complain (Kailer & Weiß, 2018).

Overall, every possible entrepreneurial plan includes advantages and disadvantages. Before incorporating any tactics into its marketing plan, GameChanger Sports should carefully analyze which ones best fit its brand and target market. They should also weigh the advantages and disadvantages of each strategy.

Conclusion

The suggested business plan by GameChanger Sports concludes with a detailed marketing plan and financial forecasts for the following five years. The plan analyses the status of important stakeholders, potential entrepreneurial strategies, and micro- and macro-environmental elements that might impact the organization's success. GameChanger Sports seeks to revolutionize the sports business and take a leadership position in the market by utilizing technology and innovation. The organization is in a strong position to accomplish its objectives and draw potential sponsors and contributors thanks to a strong team of professionals, a crystal-clear vision, and a sound plan in place. The dedication of GameChanger Sports to player management, fan engagement, and data analytics will be the foundation of the company's success and offer distinctive value to its clients. Overall, the success of GameChanger Sports in the sports market is clearly outlined in this business plan.

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