Final Exam Spring 2020 Due Thursday, May 14th, 6:20 PM EST

Final Exam Spring 2020due Thursday May 14th 620p Estassignment Re

Respond to two of the three prompts below. Each response should be approximately words in length. Each prompt includes some subtopics that you can use as a guide, but you should feel free to expand on those questions and discuss other pertinent aspects of each prompt.

Paper For Above instruction

Introduction

The strategic management of sports organizations and the evolution of pricing strategies in sports are critical areas of study within sports business. This essay explores two key prompts: first, an application of Barney's (1991) VRIS framework to the resource base of USA Ski & Snowboard, and second, an examination of how differentiation and cost leadership strategies influence revenue management in sports organizations. Both prompts underscore the importance of strategic resource utilization and pricing strategies in achieving competitive advantage and financial sustainability within the dynamic sports industry.

Applying the VRIS Framework to USA Ski & Snowboard

Barney’s (1991) VRIS framework—valued, rare, inimitable, and non-substitutable—serves as a tool to analyze whether an organization’s resources can provide sustained competitive advantage. Applying this framework to USA Ski & Snowboard, a prominent governing body and resource hub for winter sports athletes and organizations in the United States, offers insight into their strategic resource base.

First, examining the tangible and intangible resources at USA Ski & Snowboard’s disposal reveals a broad spectrum. Tangible resources include their physical facilities, training centers, equipment, and financial assets. Intangible resources encompass their brand reputation, athlete development programs, proprietary coaching techniques, relationships with sponsors and partners, and organizational knowledge. For example, their established pathways for athlete development and coaching excellence are valuable assets that support their mission to promote winter sports.

Secondly, assessing the uniqueness of these resources indicates that some are indeed rare. The organization’s extensive network within the U.S. snowboard and skiing communities, along with exclusive access to training facilities like meadows and slopes, sets it apart. Their partnerships with national and international sports bodies also afford them a level of influence and resource advantages that competitors may find hard to duplicate.

Third, considering the potential of these resources to lead to core competencies involves examining whether they are valuable, rare, costly to imitate, and non-substitutable. The athlete development pipeline rooted in their organizational knowledge and relationships likely contributes to core competencies. However, some tangible resources, like facilities, may be easily imitated by competitors with sufficient investment, thus less likely to generate sustained advantage.

Fourth, resource position barriers arise when certain assets create high entry costs for competitors. The extensive network of affiliated coaches and national team athletes constitutes significant barriers, as does the brand reputation and athlete trust that USA Ski & Snowboard has cultivated over years.

Finally, to foster a distinctive competency, USA Ski & Snowboard should consider combining their proprietary talent development techniques with technology-driven training tools. For example, integrating data analytics with athlete training programs could produce innovative approaches that are difficult for others to replicate, thereby creating a sustainable competitive advantage.

Differentiation, Cost Leadership, and Revenue Management

In the context of strategy, differentiation and cost leadership are two fundamental approaches organizations adopt to achieve competitive advantage. Strategy provides the overarching plan to create value and position the organization uniquely within the marketplace, directly influencing revenue management and pricing decisions.

Differentiation focuses on offering unique features or perceived value to customers, allowing premium pricing and often leading to higher margins. Cost leadership, conversely, emphasizes operational efficiency to offer lower prices, appealing to price-sensitive consumers and capturing market share through volume.

Within sports organizations, the value proposition varies accordingly. For a differentiated sports product—like a high-profile professional team or a luxury fan experience—the value proposition stems from exclusivity, brand prestige, or innovative features. Conversely, a cost leader in sports might be a budget-friendly sportswear brand pivoting on affordability and widespread availability.

The revenue makeup of these organizations reflects their strategy. Differentiated entities often generate a considerable proportion of revenue from premium ticket sales, merchandise, and licensing, leveraging their distinctive brand appeal. Cost leaders may rely more on volume-driven streams like mass-market merchandise, ticket sales, and value-oriented sponsorships. Structurally, organizations adopt forms that support their strategy—luxury teams emphasizing branding, and budget brands focusing on supply chain efficiencies.

Evolution of Pricing in Sports Over 50 Years

The landscape of sports pricing has significantly evolved over the past five decades. Historically, pricing techniques were primarily based on face value and straightforward ticket pricing strategies. Today, sophisticated methods involve dynamic pricing, personalized packages, and tiered offerings that reflect real-time demand and consumer behavior.

Modern innovations include variable pricing based on opponent strength, time of day, or proximity to the event, utilizing data analytics to optimize revenue. For example, Major League Baseball and Premier League football clubs employ dynamic pricing models to maximize ticket revenue based on fluctuating demand patterns.

Price-adjustment strategies such as bundling, subscription-based models, and pay-per-view streaming have become prevalent. These methods aim to enhance consumer value and revenue streams. For instance, sports leagues now offer comprehensive packages that combine tickets, merchandise, and subscriptions, providing flexibility and increasing overall revenue.

Analytics and quantitative research have revolutionized pricing decisions in sports. By analyzing historical sales data, consumer preferences, and market trends, organizations can set optimal prices that maximize revenue while maintaining fan engagement.

Factors influencing pricing decisions occur at various levels. Micro-level factors include individual consumer willingness to pay and purchasing patterns. Meso-level factors encompass team performance, market competition, and sponsorship deals. Macro-level influences involve economic trends, legal regulations, and societal trends affecting discretionary spending and sports consumption patterns.

Conclusion

Strategic resource management, as exemplified by the application of Barney’s VRIS framework to USA Ski & Snowboard, is vital for building sustainable competitive advantages. Meanwhile, evolving pricing strategies, reinforced by data analytics, have transformed revenue management in sports organizations over recent decades. Both areas highlight the importance of innovation, data-driven decision-making, and strategic alignment in achieving success within the competitive sporting landscape.

References

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