Introduction
Business competitors within the sports industry face various unique challenges. From the marketing perspective, these challenges can be analyzed by PESTLE, stakeholder, and SWOT analytic tools, which cover political, economic, social, and environmental business factors. In this context, a thorough analysis of the New York Yankees team (Team) using the analytic tools can uncover valuable facts and provide unique insights for strategic consideration.
PESTLE Analysis
Political and Legal
The main external political factor affecting the Team is that it does not operate internationally, adhering solely to policies and regulations imposed by U.S. law. Among these laws are labor laws protecting players and other personnel, such as the Occupational Safety and Health Act (United States Department of Labor, n.d.). The team must also comply with business income and tax regulations, such as the Tax Cuts and Jobs Act of 2017 from the Internal Revenue Service, which is responsible for the player contract evaluation (Mitten et al., 2019; Robinson, 2019). Finally, the Team has to be mindful of product and consumer safety laws and regulations regarding the Team’s merchandise and stadium maintenance.
Economic
From an economic perspective, the most influential factor is fluctuations in the world economy. Due to an increasing interconnection between state markets, global economic shifts can affect the internal U.S. market and, consequently, all aspects of the Team’s economic operations (Leeds et al., 2018).
Other external economic factors include the U.S. market tendencies, the competition against other leisure-oriented businesses, and trends in consumer behavior. For example, the electronic sports industry’s revenue was expected to double in 2022 to 1.8 billion USD compared to 2019 (Yin, 2020). MLB’s revenue was reduced to 3.66 billion in 2020 compared to 2019’s 10.37 (Statista, 2021). In this context, the lockdown imposed by the COVID-19 outbreak severely disrupted MLB’s operations.
Socio-Cultural
Socio-cultural factors influencing the team are generally concerned with who is interested in it and in what way. Regarding the former, various demographic variables, such as age, sex, and location, can portray the target population. For example, the largest age group of MLB fans is 45-64 years old; however, the intergenerational difference does not exceed 5% (Statista, 2021). Regarding the latter, the current societal trends, such as eco-friendliness, health consciousness, and the ability to watch games online, impose several restrictions on the Team’s business activity. Finally, many consumers mimic the consumer behavior of their favorite players, namely, what brands and products they prefer, which also has to be accounted for.
Technological
The numerous technological advances in society directly impact the Team’s business. Firstly, the stadium should display innovative solutions regarding accessibility, maintenance, and energy efficiency (Panchanathan et al., 2019). Moreover, consumers expect the Team to provide online game broadcasts and thorough information regarding players and matches. In this regard, the Team can utilize various opportunities to reach its fans via social media platforms to interact, inform, sell, and provide customer service (Abeza et al., 2019). The Team must also constantly upgrade its equipment and sportswear. Finally, the Team has to devote time to intellectual property management due to potential cyber threats.
Environmental
Environmental factors mainly center around the Team’s adherence to corporate social responsibility practices. These practices imply that the team will contribute to the well-being of the societal, economic, and environmental populations. For instance, they include ethical business conduct, genuine customer and employee care, and philanthropy (Rhodes, 2020). In addition, the Team must consider participating in eco-friendly initiatives, such as renewable energy and reducing carbon emissions (Bidwell, 2022; Wynes, 2021). For example, wind energy can be used for stadium energy supply, and the number of trips by plane can be limited.
Stakeholder Analysis
The Team’s fans can be categorized into three groups: non-attendees, casual, and avid fans. In this context, avid fans, representing roughly two-fifths of the fan community, are the most controversial example (Statista, 2021). They are prone to purposefully distinguishing themselves from the crowd, for example, by being clean-shaven. The controversy around them, however, comes from the fact that they might be more interested in the losses of the Team’s competitors than the Team’s victories (Lehr et al., 2019). Nevertheless, avid fans share and enjoy the “familial” unity the Team creates around itself with other fan groups.
SWOT Analysis
Strengths
The team can be proud of its history, which is rich in significant sports achievements. Combined with an almost ideal location in one of the most populated U.S. cities, this factor results in reasonable team popularity and recognition. Apart from that, the Team has gathered many players who possess strong individual qualities and can compete successfully against other popular teams in the industry (Statista, 2021). Finally, the Team’s stadium is relatively new and well-equipped from a contemporary perspective.
Weaknesses
The Team’s weaknesses represent a narrower scope compared to its strengths. There are some issues regarding the stadium operation, such as seat pricing and limited parking (Stoldt et al., 2020). This comes at the expense of overall customer service satisfaction. Other weaknesses include a negative reputation among competitors’ fans due to comparably higher player payrolls (Statista, 2021). Finally, the Team solely focuses on the U.S. market, thus not being as popular worldwide.
Opportunities
Regarding opportunities, the Team should consider expanding into the global and U.S. markets. Setting up European and Asian branches can open those markets for the Team. By investing in its paid TV broadcast, YES network, the Team can solidify its position within the U.S. market (McKenna & Marshall, 2018). Considering the Team’s performance, it should consider participation in major sports events while working on acquiring new strong players and retaining old members.
Threats
Competition is among the constant and most imminent threats to the Team. In this context, potential injuries or aging of the on-field team members can cause undesired consequences. There are also several cybersecurity risks to the Team’s intellectual property. Finally, regarding long-term threats, the Team has to vary the potential challenges to MLB operations and the in-state and world economic fluctuations.
Conclusion
Analyzing the Team’s marketing situation using PESTLE, stakeholder, and SWOT analytic tools has yielded several valuable notions. Mainly, both PESTLE and SWOT tools signal the threat posed by economic fluctuations within and outside the scope of the U.S. Apart from that, all three analytic tools indicate the importance of dealing with competition, as it will improve the Team’s market position and motivate the fanbase.
References
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