Arsenal Football Club, otherwise known as “The Gunners” has had an outstanding history since its inception. In fact, the club has become a formidable force in English professional football by winning innumerable Premier League titles and several FA Cups in recent times (Soar and Tyler, 2000). It is on record that the Club has been famed for being the first London club to reach the UEFA Champions League Final in history. However, this successful performance has been attributed to the enabling environment the Club has been enjoying in addition to the unmatched dedication shown by the various managers who have ever worked for the Club. This fact can be confirmed by performing a PESTEL analysis of the Premier League football club Arsenal.
A PESTEL analysis of a company entails critically looking at the political, economic, socio-cultural and technological factors surrounding the operational environment of the said company. For this reason, the political factors surrounding Arsenal Football Club have been found to be very acceptable. Just as it is the case elsewhere in the world, football is a very electric game in the United Kingdom and attracts a wide range of spectators. The international community participates in the world cup convention after every four years clearly indicating the kind of commitment attached to the sport by various governments all over the world (Myron, 1993). The amount of money spent in organizing and planning for football fixtures particularly in the UEFA Champions League also demonstrates the popularity of the sport. Studies indicate that government policies have not been restrictive regarding the operations of Arsenal Football Club. According to Maidment (2006), Arsenal Football Club has been involved in charity work in the community particularly through “Arsenal in the Community” with full government support. The Club assists the less fortunate in society by providing sporting services, educational and charitable projects (Soar and Tyler, 2000). Additionally, it is noteworthy to mention that Arsenal Football Club has been contracting both players and managers in a free and fair manner devoid of any political interference. This is evidenced by the appointment of the current long-serving manager; outsider Arsène Wenger who has demonstrated outstanding performance since 1996 (Spurling, 2004). Finally, the government’s position on marketing ethics has allowed the Club to conduct advertisements without any restrictions insisting that the Club is a big contributor to the economy (Maidment, 2006).
Economic factors on the other hand have been the most enabling for the club and the sporting sector in general. Interest rates levied by the government on the club’s operations at a rate of 22.3 % have not been considered punitive at all. This argument is supported by reports presented by Wisely (2009) which show that the club made a pre-tax operating profit of £62.7m in the year ending 31 May 2009. Furthermore, the same reports show that Arsenal is ranked “the third most valuable football team in the world after Manchester United and Real Madrid at a value of £605m, excluding debts” according to a 2008 Forbes business magazine report. Similarly, “accountants Deloitte rated Arsenal sixth in the 2009 Deloitte Football Money League, a ranking of the world’s football clubs in terms of revenue, with the club earning £209.3m in the 2007–2008 season” according to the club’s chairman (Wisely, 2009). big portion of this revenue is attributed to have come from the gate and match day collections (Wisely, 2009) and the sale of Thierry Henry realizing close to about £116.1m for that season. The fact that American sports tycoon Stan Kroenke is the largest shareholder on the board is also a clear indication that the club is economically stable (Maidment, 2006). This has improved investor confidence with more investors demanding Arsenal’s shares which incidentally are not sold in any of the international stock markets.
The sociocultural factors in my view are very strong contributors to the success of Arsenal Football Club. As shown by numerous reports globally, football is a very popular game amongst people of all ages regardless of gender and status (Myron, 1993). Football attracts more youth in schools compared to any other sporting activity offered in the school curriculum. The sport draws the highest number of supporters and is voted as the most entertaining and well-paying of all the sports in the world (Myron, 1993). This argument can be supported by reports that indicate soccer fans particularly those who support Arsenal have gone fanatical whenever the team is playing a crucial match (Spurling, 2004). This observation is underscored by the fact that Arsenal Football Club has an estimated global fan base of about 27 million, becoming the third-largest in the world according to a 2005 report (Maidment, 2006). In addition, a 2002 report has indicated that Arsenal Football Club has the highest percentage of black supporters among all the clubs in English football (Spurling, 2004). In regard to this status, analysts explain that Arsenal has developed a number of rivalries with several other clubs, like Tottenham Hotspur (Maidment, 2006). From the foregoing, it has been demonstrated that the sociocultural factors surrounding Arsenal Football Club have presented a very enabling environment. Moreover, no religious or cultural beliefs have been found to frustrate Arsenal’s efforts to become the leading club in the football arena.
Technological factors are very crucial in any business enterprise and are considered fundamental in the globalization of businesses (Maidment, 2006). In view of this, Arsenal Football Club has been at the forefront in embracing technology-based operations. This fact is illustrated by the transformation of the club’s current stadium, the Emirates into a very safe and pleasant environment for supporters and all other users as reported by Wisely (2009). The Club has undertaken concerted efforts to ensure that the stadium is renovated to the highest standards possible with the installation of CCTV cameras and other surveillance equipment to prevent soccer hooliganism during matches. In addition to this, Soar and Tyler (2000) explain that Arsenal has adopted the use of match filming as well as video shows when conducting training sessions for their players. Additionally, the club has embraced technology in conducting a spirited branding exercise of their new stadium using the Club’s memorable matches in a bid to personalize the Emirates Stadium as explained by the board’s chairman. Finally, advertising using the new technologies in the market has helped Arsenal Football Club to reach a large portion of football fans. The fact that the Club has opened a website for fans to access crucial information about the Club is a bold move in the right direction. Fans are capable of watching crucial matches anytime, anywhere because of current advancements in technology (Maidment, 2006).
List of references
Maidment, Jem., 2006. The Official Arsenal Encyclopedia. Hamlyn.
Myron, Smith J., 1993. The College Football Bibliography. New York: Greenwood Press.
Soar, Phil and Tyler, Martin., 2000. The Official Illustrated History of Arsenal. Hamlyn.
Spurling, Jon., 2004. Rebels for the Cause: The Alternative History of Arsenal Football Club. Mainstream.
Wisely, S., 2009. Arsenal Holdings plc, consolidated profit and loss account for the year ended. Web.