Lets consider sports as a business for this LA This week I w

Let’s consider sports as a business for this LA. This week, I would like you to consider any of the major US-based sports leagues (MLB, NFL, NBA, or NHL) and conduct an analysis that includes up to two aspects of Porter\'s 5 Forces or of PESTEL. (If you choose Porter, then select two of the 5 forces; if you select PESTEL, then select two of the 6 concepts. Please don\'t select one from each.) Explain how these factors or aspects from the selected framework explain the business characteristics of any of these sports business leagues.

Solution

Answer:

Sports League Business in US: The sports league business is of organizing the sports events between the teams and generating revenue from match viewers, advertisement, broadcasting on TV / radio channels and participating agencies. This is an high margin business model due to the high demand of public towards the sports matches specially on weekends.   

Porter’s five forces are as below

We want to analyze the NFL – National Football League by the two forces as below:-

For NFL – National Football League, the entry of new sports league or entry of another football league could be a big threat for the existing NFL, as the new sports league or football league will impact the existing league business by reducing the viewers (consumers/customers) as these will be attracted by the new league. Thus there is a big threat for an business due to entry of new business in the market.

For NFL- the substitute league could be like other league like MLB, NBA, or NHL, as these leagues could impact on the NFL business or people starts interest in some other options like movies or spiritual events, laughter shows etc, then these new options could impact the sports league business and made it difficult to survive as the viewers will be reduced significantly due to engagement in new options. Thus there is a big threat to sports league due to substitute league entry in the market.