Problem Statement
Since World Wrestling Entertainment (WWE) was developed, it has faced competition from other wrestling companies. When it was bought by Vince in 1982 it faced competition with each competitor not encroaching on each other’s territory. Although Vince paid local television and did away with most of his competitors, completion still existed.
The competition intensified when Ted Turner bought World Championship Wrestling (WCW) in 1988. Turner spent much money in buying stars from WWE then known WWF.
Vince ended this competition by acquiring WCW which resulted to a significant increase in the number of wrestling stars. Even today WWE still faces competition from TV shows like soap operas. WWE has also been faced by competition from movie industry which has attracted some of its stars.
WWE has also been faced with the problem of maintaining fans all over the world (Connall). WWE has been caring out road shows from one city to another to attract more fans. Although these road shows have not been generating profits, WWE has maintained them as they attract fans.
WWE has also been forced to change its shows from pure wrestling to a form of wrestling with aspects borrowed from other favorite shows on TV like soap operas. WWE has also been faced with the problem of investing in new opportunities which attracts fans (Ramkissoon). We find the launched football league called XFL folding after one season after it fails.
This costs WWE a loss amounting to $57 million. WWE has also been faced with the problem of generating more revenues while facing competition from other TV shows. This has led even to the production of movies by WWE as well as introduction of 24/7, a subscriber video-on-demand service.
Strengths
One of the WWE strengths is a good reputation among customers. WWE has ensured good and quality shows especially with introduction of borrowed aspects from soap operas. This has given the company a good image. The use of stars in their weekly shows also has promoted their image over their competitors.
Vince having admitted to the public that wrestling matches were scripted made wrestling fans to appreciate his honesty which created a good reputation for WWE. WWE is leading in the stock market which another strength for the company (Winters). Another WWE’s strength is good management.
WWE through management of Vince has developed to an international show. Vince with his aggressiveness bought WWC which was one of the WWE’s greatest competitors. Vince through innovation has also introduced borrowed aspects from other TV shows which have made it more famous and interesting to fans. Vince also ensured he owned the right to the characters that were played by his wrestlers.
Weaknesses
WWE on the other hand has been faced with weaknesses. One weakness it is facing is the high cost of producing shows and maintaining fans. The use of road shows to produce parts of the TV show and to attract fans is very expensive. This is because these road shows have not been generating any profits. Another weakness that WWE has encountered is poor investment on new opportunities.
The starting of a new football league XFL cost the company a loss of $57 million. Poor supply chain has also been a weakness to WWE (Management Paradise). Even though WWE has faced no hindrance in expanding internationally, it has been able to distribute its shows in Europe. Again it has not fully invented in the new area of digital media.
Opportunities
WWE is faced with opportunities of expanding in the abroad market. WWE has not been faced with any problems when investing internationally in others countries. Even with this advantage WWE has only expanded to Europe through a European sport show (Solomon, 46).
WWE needs to reach the global market via internet as well as digital media. Innovation also offers WWE with opportunities to produce a variety of TV shows like movies acted by wrestlers who are stars.
Threats
WWE is faced by the threat of changing customers’ preference and taste. Wrestling fans are been stolen away by soap opera TV shows which are becoming favorite among many people. Emergence of mixed martial arts, which is a growing form of combat sport that combines kickboxing and grappling, has been a threat to WWE. This is because been a similar show to wrestling it has been pulling away some wrestling fans.
Forces
WWE is still dominating in the industry of wrestling over its rivals. Through competitive rivalry WWE management has shown high level of innovation.
Through introduction of two different TV shows every week, 24/7; a subscriber video-on-demand service and incorporation of borrowed ideas from other TV shows has made WWE posses a competitive advantage over its competitions. WWE has had an advantage of having many star wrestlers thus have had no problems with its inputs due to high supply.
This has even given the company the right to have rights over characters played by these stars. Also the company has gained the advantage of not undergoing high inputs cost. WWE is faced with competition from other TV shows like soap operas which are absorbing most of its fans.
Again there is a high threat of its customers switching to mixed martial arts, which is a growing form of combat sport that combines kickboxing and grappling. WWE has a powerful bargaining power of its customers with its uniqueness in its wrestling TV shows. WWE has also had this power because it’s the best company in the industry with its own distribution channel.
Solutions
In solving its problems, WWE should consider producing a variety of TV shows besides wrestling. This will aid to accommodate different preferences and tastes by providing fans with a variety to choose from. This will also aid in competing with other firms. WWE should extend production of movies as well as start production so mixed martial arts.
This will enable it to retain its fans. WWE can also consider changing its management which is family based. This will help to avoid some mistakes made like the investment on FXL football league.
This will also promote innovation and creativity within the company. WWE can also consider the option of merging with its competitors as a way of avoiding competition. Like, it can merge in production of mixed martial arts as a way of trying to retain fans.
Work Cited
Connall, Chris. WWE: Problems With The Product, Part One. Bleacher Report, Inc. 21 July. 2010. Web.
Management Paradise. (2010). SWOT ANALYSIS ON World Wrestling Entertainment. Management Paradise. 1 December. 2010. Web.
Ramkissoon, Vanda. WWE’s Impatient Fan: Fast Paced Problems Facing Wrestling Today. Bleacher Report, Inc. 11 November. 2010. Web.
Solomon, Brian. WWE Legends. New York, NY: Simon and Schuster. 2006.
Winters, Nathan. SWOT Analysis: Total Non-Stop Action. Bleacher Report, Inc. 19 May. 2010. Web.