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NBA: Competing on Global Delivery With Akamai OS Streaming
Using Porter’s competitive forces model, analyze the NBA’s market situation. How does the use of Akamai help the NBA compete in this market?
Michael Porter`s five analysis tool of competitiveness is a widely used business strategy for analyzing the level of competitiveness in a market. Porter`s five forces include the threat of new entrants, threats of substitutes, bargaining power of suppliers, bargaining power of customers, and competitive rivalry between existing players.
Analysis of the NBA using porter`s model demonstrates competitive forces exist amongst the environment the NBA operates. The threat of entry is, however, low since barriers to entry exist and investing in such a sports profession usually involves high finances to build an acceptable brand. The threat of substitute comes in the form of sport entertainment substitutes and non-sports entertainment substitutes. Under the bargaining power of supplier’s players under unions and those with rogued agents always demand high wages and bonuses. The NBA has control of its customers on the merit and usually auctions its viewership rights to the highest bidder. Besides, the growth of professional sport has enabled them to command high fees from partners. On competitive rivalry, both domestic and international league offer competition.
The use of Akamai has assisted the NBA to reach out to more customers globally in addition to growing commercial revenues from the broader customer base.
Using Porter’s generic strategies model, what do you think is the NBA’s overall strategy or strategies?
NBA enjoys some monopoly as the local basketball leagues are no match to the NBA who has a more extensive fan base worldwide. From Porter`s generic strategy, the NBA employs a differentiation strategy. The NBA has positioned itself in a form that looks different from other professional sports such as football, baseball and many more. The NBA focuses on a niche while offering a unique product concerned with strengthening customer’s loyalty by providing viewership globally.
Why is it important that all fans in the world have the same experience?
All fans must have the same experience as this will help to capture the fast-growing markets that are untapped. While ensuring that quality similarity is maintained across global growth is inevitable. This kind of growth offers a platform for generating revenues through commercial. More importantly, customers feel appreciated for their loyalty.
Why is it important that individual franchise owners can build, manage, and distribute on the NBA platform their content?
Individual franchise owner must manage their content to ensure control of whatever message is communicated to the niche they hold. A displaced message can lead to customer loss if whatever if been communicated is not purposeful to them. This also gives them the power to manage whatever content being aired and market their own business.
The word “partnership” appears several times in the video. Who are the NBA’s partners? How does the concept of a strategic ecosystem apply to the NBA’s partnership strategies?
The NBA partners are fans, Akamai, players, owners, and partners.
The strategic ecosystem includes product, services and technology providers who work together to deliver value to customers. The NBA value these partners and always aim to ensure that in most scenarios while transacting with its partners, the deal is a win-win for everyone.