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Case study
Publication date: 20 January 2017

James Shein and Scott Kannry

This case explores the turnaround and corporate renewal of the Chicago Blackhawks professional hockey team, which transformed from one of the worst-run organizations in all of…

Abstract

This case explores the turnaround and corporate renewal of the Chicago Blackhawks professional hockey team, which transformed from one of the worst-run organizations in all of professional sports in 2007 to one that won the Stanley Cup (the National Hockey League championship trophy) in 2010. W. Rockwell “Rocky” Wirtz was faced with making critical decisions shortly after inheriting the team from his father, who was the individual most associated with the organization's decline. The team faced financial trouble and had narrowly avoided missing payroll; the previous customer relations strategy (which included refusing to televise home games or to conduct effective marketing) had resulted in significantly diminished brand value; and management and player personnel were devoid of effective leadership. At its nadir, the team was named “The Worst Franchise in Professional Sports” by ESPN in 2004. After assuming control, Rocky embarked on an ambitious corporate renewal strategy that included the following components: leadership: install a new management team with clear goals and creative ideas about how to turn around the organization; culture: reward players for accomplishing their goals and establish a performance-based culture; financial: seek new corporate sponsorships and increase ticket prices once the team established a winning record; and brand and marketing: send a clear message that the team was intent upon winning the championship and design a customer-focused marketing strategy.

After analyzing the case, students should be able to: recommend strategic, financial, and operational changes needed to turn around the organization, and identify key leadership qualities that enable execution of a turnaround plan.

Case study
Publication date: 20 January 2017

Nabil Al-Najjar, Darshan Desai and Steve Hallaway

Radio broadcasting is characterized by diffused taste for programming and highly fragmented supply of content. Satellite radio is a major technological breakthrough that promises…

Abstract

Radio broadcasting is characterized by diffused taste for programming and highly fragmented supply of content. Satellite radio is a major technological breakthrough that promises to reshape this industry by, among other things, satisfying a greater diversity in tastes and promoting greater variety in content provision. A major issue is that the economies of scale are such that it is unlikely more than a few (currently, just two) providers can operate in this market due to the considerable infrastructure and content costs.

To study the industry structure (demand and cost analysis), analyze customer acquisition strategies and the resulting lock-in of customers, and the aggressive bidding for content that takes place in this industry.

Details

Kellogg School of Management Cases, vol. no.
Type: Case Study
ISSN: 2474-6568
Published by: Kellogg School of Management

Keywords

Case study
Publication date: 1 May 2011

Rita J. Shea-Van Fossen

This case traces Under Armour from its founding in 1996 through 2008 when the company entered the hyper-competitive non-cleated athletic footwear market. In 1996, with an…

Abstract

This case traces Under Armour from its founding in 1996 through 2008 when the company entered the hyper-competitive non-cleated athletic footwear market. In 1996, with an innovative product and locker room access to college and pro players, Kevin Plank started Under Armour. He turned a struggling t-shirt company into a dominant player capturing 75% of the performance apparel market. In 2006, Under Armour successfully entered the athletic footwear market with a line of football cleats. Under Armour was the first company to disrupt Nike's dominance of the football cleat market by gaining 25% of the market within a year of introduction. In 2008, Under Armour entered the non-cleated athletic footwear market with a cross-trainer sneaker line and a $4.4 million Super Bowl ad. Unlike prior introductions, Nike responded aggressively to Under Armour's move into sneakers. Despite increased sales, Under Armour's costs increased, and profits and stock price decreased. The case concludes by asking students to evaluate Under Armour's next move. An extensive exhibit provides an overview of the athletic footwear industry in 2008.

Details

The CASE Journal, vol. 7 no. 2
Type: Case Study
ISSN: 1544-9106

Case study
Publication date: 8 May 2018

Joanna Kimbell, Anne Macy, Emily Ehrlich Hammer and Denise Philpot

The Women’s US Soccer team in 2016 entered into the summer Olympics with a dark cloud over their heads, the lack of pay equity in the sport of soccer. Despite being heralded as…

Abstract

Synopsis

The Women’s US Soccer team in 2016 entered into the summer Olympics with a dark cloud over their heads, the lack of pay equity in the sport of soccer. Despite being heralded as the best female team in the world, the team’s compensation does not reflect their winning record or average work performance. Complex contractual negotiations and compensation intricacies surround this situation and the legal proceedings with the Equal Employment Opportunity Commission that include discrepancies between gender preferences for compensation, benefits packages and terms of the overall collective bargaining agreement in a monopsony. The financial impact of lost wages and the role of the fan base are also examined.

Research methodology

This case has been created through the eyes of past and current members of the US Women’s Soccer team using scholarly and periodical sources.

Relevant courses and levels

This case is designed for upper level, undergraduate human resource management, labor economics and employment law courses, specifically, principles of human resource management, gender equity courses, business law, labor economics, law & economics.

Case study
Publication date: 20 January 2017

Michael Mazzeo and Greg Merkley

In December 2011 the Lego Group (TLG) announced the launch of Lego Friends, the company’s sixth attempt to market a product to girls. Lego Friends, which was supported by a $40…

Abstract

In December 2011 the Lego Group (TLG) announced the launch of Lego Friends, the company’s sixth attempt to market a product to girls. Lego Friends, which was supported by a $40 million global marketing campaign, was designed to introduce the fun of building with Lego bricks to girls, who represented less than 10 percent of Lego’s audience.

The company’s poorly executed brand extensions and move from free-form building sets to story-driven kits had nearly cost it its independence in 2004, so the launch of Lego Friends was strategically important. However, within hours of the product’s appearance it was heavily criticized for reinforcing gender stereotypes and damaging the valuable Lego brand.

Jørgen Vig Knudstorp, CEO since 2004, had saved TLG and ushered in an era of sales growth with a series of successful strategic initiatives. Would Lego Friends be another addition to TLG’s graveyard of failed products for girls, or would it prove popular and finally enable the company to double its sales and profits by reaching this segment?

After analyzing the case, students should be able to:

  • Understand the connection between a firm’s assets and its activities

  • Identify new resources and capabilities required for a change in strategic focus

  • Recognize the consequences of poorly matched assets and market opportunities

Understand the connection between a firm’s assets and its activities

Identify new resources and capabilities required for a change in strategic focus

Recognize the consequences of poorly matched assets and market opportunities

Case study
Publication date: 20 January 2017

Eric T. Anderson and Vasilia Kilibarda

It is February 2011 and Brian France, CEO of NASCAR (the National Association for Stock Car Auto Racing), is facing a crisis. In the last five years, attendance at weekend NASCAR…

Abstract

It is February 2011 and Brian France, CEO of NASCAR (the National Association for Stock Car Auto Racing), is facing a crisis. In the last five years, attendance at weekend NASCAR races has fallen 22 percent and television viewership has declined 30 percent. Key marketing sponsors have recently left the sport. At the same time, the U.S. economy was only beginning to recover from an economic recession that had an adverse impact on the sport of auto racing as a whole. Some leaders within NASCAR counseled Brian that these trends in attendance, viewership, and sponsorship stemmed from the recession and that NASCAR should continue with business as usual. But Brian sensed that the industry needed fundamental change and that he, as CEO of NASCAR, was the one that must lead this change.

With Brian at the helm, NASCAR embarked on an unprecedented amount of qualitative and quantitative research to assess the strengths and weaknesses of the entire industry. At the center of this research was the NASCAR consumer. Highly engaged, enthusiastic consumers were at the heart of an industry business model that had been successful for decades. But in 2011, marketing within all of NASCAR needed to transform, as it was clear that consumers were disengaging with the sport.

As the consumer research results unfold, Brian and leaders within NASCAR must make tough choices and set priorities. The case focuses on four key areas in which decisions need to be made by NASCAR leadership: digital marketing and social media, targeting the next-generation NASCAR consumer, enhancing the star power of NASCAR drivers, and enhancing the consumer experience at NASCAR events. Focus group videos offer students a customer-centric deep-dive into these challenges.

At its heart, this is a case about great leadership and transforming marketing throughout an entire industry. A wrap-up video from CEO Brian France summarizes how NASCAR executives tackled the difficult questions posed in the case.

  • Understand how deep consumer engagement is at the heart of a successful marketing ecosystem

  • Analyze focus group videos to understand the needs of today's consumer

  • Prioritize the market segments that should be cultivated as the next-generation consumer

  • Understand how differing incentives within an industry are at the heart of many marketing problems

  • Analyze a complex set of problems and set and manage priorities

  • Understand the importance of leadership in a time of crisis

Understand how deep consumer engagement is at the heart of a successful marketing ecosystem

Analyze focus group videos to understand the needs of today's consumer

Prioritize the market segments that should be cultivated as the next-generation consumer

Understand how differing incentives within an industry are at the heart of many marketing problems

Analyze a complex set of problems and set and manage priorities

Understand the importance of leadership in a time of crisis

Case study
Publication date: 20 January 2017

L. J. Bourgeois, Nicholas Goodman and John O. Wynne

In December 2001, after a six-month process of vying for AT&T's Broadband, the president of cable operator Comcast Corporation, had just received word that Comcast's $72-billion…

Abstract

In December 2001, after a six-month process of vying for AT&T's Broadband, the president of cable operator Comcast Corporation, had just received word that Comcast's $72-billion offer had won the auction. Comcast, the cable industry's third-largest operator, would merge with industry leader AT&T Broadband to form a company with more than $20 billion in revenue and an unparalleled distribution (a presence in 22 of the nation's top 25 markets). Now the presidents of both companies began to consider their post-merger integration strategies. What was important and how should they prioritize their activities? How could they get all stakeholders to understand the rationale for the deal and its business goals and excited about the new AT&T Comcast?

Details

Darden Business Publishing Cases, vol. no.
Type: Case Study
ISSN: 2474-7890
Published by: University of Virginia Darden School Foundation

Keywords

Case study
Publication date: 28 March 2018

Brian Sternthal and Prashant Malaviya

The case traces the development of the Under Armour (UA) brand, product, and market growth under CEO and founder Kevin Plank from its inception in 1996 through 2016. UA provides a…

Abstract

The case traces the development of the Under Armour (UA) brand, product, and market growth under CEO and founder Kevin Plank from its inception in 1996 through 2016. UA provides a cohesive case study of how to launch and sustain a consumer brand even in the face of its third-party manufacturing approach, which gives its apparel no patentable design or fabric technologies. The case uses UA's brand and advertising development as a backdrop for the current pivotal issue of how to target women to sustain growth. UA's stated goal is to build a $1.9 billion women's business by 2019.

In laying out UA's growth and competitive moves, the case lets students analyze broadcast, social media, and other digital advertising campaigns in view of the company's brand development and strategic targeting. The case also highlights the importance of leveraging brand heritage and historical differentiation while respecting key nuances when extending into new markets (i.e., moving from a predominantly male-driven audience to female). It also allows an exploration of how to use consumer insight and broader cultural attitudes and trends to support extending a position into new markets.

Case study
Publication date: 7 June 2021

Muralee Das and Susan Myrden

Resource-based view (RBV) theory (Barney, 1991; Barney and Mackey, 2016; Nagano, 2020) states that a firm’s tangible and intangible resources can represent a sustainable…

Abstract

Theoretical basis

Resource-based view (RBV) theory (Barney, 1991; Barney and Mackey, 2016; Nagano, 2020) states that a firm’s tangible and intangible resources can represent a sustainable competitive advantage (SCA), a long-term competitive advantage that is extremely difficult to duplicate by another firm, when it meets four criteria (i.e. not imitable, are rare, valuable and not substitutable). In the context of this case, we believe there are three sources of SCA to be discussed using RBV – the major league soccer (MLS) team player roster, the use of artificial intelligence (AI) technologies to exploit this roster and the league’s single-entity structure: • MLS players: it has been widely acknowledged that a firm’s human resource talent, which includes professional soccer players (Omondi-Ochieng, 2019), can be a source of SCA. For example, from an RBV perspective, a player on the Los Angeles Galaxy roster: > cannot play for any other team in any other league at the same time (not imitable and are rare), > would already be a competitive player, as he is acquired to play in the highest professional league in the country (valuable) and > it would be almost impossible to find a clone player matching his exact talent characteristic (not substitutable) anywhere else. Of course, the roster mix of players must be managed by a capable coach who is able to exploit these resources and win championships (Szymanski et al., 2019). Therefore, it is the strategic human resource or talent management strategies of the professional soccer team roster that will enable a team to have the potential for an SCA (Maqueira et al., 2019). • Technology: technology can also be considered a source of SCA. However, this has been a source of contention. The argument is that technology is accessible to any firm that can afford to purchase it. Logically, any MLS team (or for that matter any professional soccer team) can acquire or build an AI system. For many observers, the only obvious constraint is financial resources. As we discuss in other parts of the case study, there is a fan-based assumption that what transpired in major league baseball (MLB) may repeat in the MLS. The movie Moneyball promoted the use of sabermetrics in baseball when making talent selection (as opposed to relying exclusively on scouts), which has now evolved into the norm of using technology-centered sports analytics across all MLB teams. In short, where is the advantage when every team uses technology for talent management? However, if that is the case, why are the MLB teams continuing to use AI and now the National Basketball Association (NBA), National Football League (NFL) and National Hockey League are following suit? We believe RBV theorists have already provided early insights: > “the exploitation of physical technology in a firm often involves the use of socially complex firm resources. Several firms may all possess the same physical technology, but only one of these firms may possess the social relations, cultural traditions, etc., to fully exploit this technology to implementing strategies…. and obtain a sustained competitive advantage from exploiting their physical technology more completely than other firms” (Barney, 1991, p. 110). • MLS League Single-Entity Structure: In contrast to other professional soccer leagues, the MLS has one distinct in-built edge – its ownership structure as a single entity, that is as one legal organization. All of the MLS teams are owned by the MLS, but with franchise operators. The centralization of operations provides the MLS with formidable economies of scale such as when investing in AI technologies for teams. Additionally, this ownership structure accords it leverage in negotiations for its inputs such as for player contracts. The MLS is the single employer of all its players, fully paying all salaries except those of the three marquees “designated players.” Collectively, this edge offers the MLS unparalleled fluidity and speed as a league when implementing changes, securing stakeholder buy-ins and adjusting for tailwinds. The “socially complex firm resources” is the unique talent composition of the professional soccer team and most critically its single entity structure. While every team can theoretically purchase an AI technology talent management system, its application entails use across 30 teams with a very different, complex and unique set of player talents. The MLS single-entity structure though is the resource that supplies the stability required for this human-machine (technology) symbioses to be fully accepted by stakeholders such as players and implemented with precision and speed across the entire league. So, there exists the potential for each MLS team (and the MLS as a league) to acquire SCA even when using “generic” AI technology, as long as other complex firm factors come into play.

Research methodology

This case relied on information that was widely reported within media, press interviews by MLS officials, announcements by various organizations, journal articles and publicly available information on MLS. All of the names and positions, in this case, are actual persons.

Case overview/synopsis

MLS started as a story of dreaming large and of quixotic adventure. Back in 1990, the founders of the MLS “sold” the league in exchange for the biggest prize in world soccer – the rights to host the 1994 Fédération Internationale de Football Association World Cup before they even wrote up the business plan. Today, the MLS is the highest-level professional men’s soccer league competition in the USA. That is a major achievement in just over 25-years, as the US hosts a large professional sports market. However, MLS has been unable to attract higher broadcasting value for its matches and break into the highest tier of international professional soccer. The key reason is that MLS matches are not deemed high quality content by broadcasters. To achieve higher quality matches requires many inputs such as soccer specific stadiums, growing the fan base, attracting key investors, league integrity and strong governance, all of which MLS has successfully achieved since its inception. However, attracting high quality playing talent is a critical input the MLS does not have because the league has repeatedly cautioned that it cannot afford them yet to ensure long-term financial sustainability. In fact, to guarantee this trade-off, the MLS is one of the only professional soccer leagues with an annual salary cap. So, the question is: how does MLS increase the quality of its matches (content) using relatively low cost (low quality) talent and still be able to demand higher broadcast revenues? One strategy is for the MLS to use AI playing technology to extract higher quality playing performance from its existing talent like other sports leagues have demonstrated, such as the NFL and NBA. To implement such a radical technology-centric strategy with its players requires the MLS to navigate associated issues such as human-machine symbioses, risking fan acceptance and even altering brand valuation.

Complexity academic level

The case is written and designed for a graduate-level (MBA) class or an upper-level undergraduate class in areas such as contemporary issues in management, human resource management, talent management, strategic management, sports management and sports marketing. The case is suitable for courses that discuss strategy, talent management, human resource management and brand strategy.

Details

The CASE Journal, vol. 17 no. 2
Type: Case Study
ISSN: 1544-9106

Keywords

Case study
Publication date: 13 June 2017

Alice M. Tybout

The case traces the development of Lululemon Athletica (Lulu) from founder Chip Wilson's first post-yoga euphoria in 1997 through the sale of all his shares in 2015. Officially…

Abstract

The case traces the development of Lululemon Athletica (Lulu) from founder Chip Wilson's first post-yoga euphoria in 1997 through the sale of all his shares in 2015. Officially founded in 1998, Lulu was built on the foundation of its “miracle” figure-enhancing yoga pants made from a proprietary stretch fiber. The case outlines Wilson's early experience in technical performance wear, which gave him the expertise needed to launch the Lululemon brand with its premium-priced, fashion-designed product line targeted at upscale women. The case also highlights the retailing and promotion approach that drove Lulu's first decade of success. The snapshot of how the Lulu brand cult was born and diffused provides the backdrop for assessing whether the brand has already hit its peak or whether it can sustain the explosive growth that effectively created the athleisure category. To aid in this determination, the case presents two competitors as comparative foils (Under Armour and Athleta) to contextualize Lulu's growth prospects.

The Lululemon case highlights the importance of the competitive frame of reference when positioning a brand and describes how this may differ for the three competitors. The case also allows for a discussion of the challenges of maintaining the congruence of a retail brand with a diverse product line. This struggle is unique to retailers who must fit ever-varied product assortments (not just a single product line) under the umbrella of a single brand proposition, and is particularly relevant to vertically integrated brands such as Lululemon.

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