In this assignment, you will demonstrate your mastery of the following course outcomes:
- Assessthe current state of a sport organization for informing potential expansion to international markets
- Evaluatepotential threats to and benefits for a sport organization entering international markets for informing business expansion recommendations
- Analyzeinternational sport markets for distinguishing the working rules and regulations of that market
- Determinepotential challenges and benefits facing sport organizations entering the international marketplace for informing components of effective international sport business plans
- Developeffective components of international sport business plans that incorporate appropriate ethical and cultural considerations.
Develop components of a business plan to help inform your chosen sport organization as it looks to expand into a particular international market that you have selected. Once the organization and international market are established, you will analyze the organization as well as the target nation to determine the best approach for expansion.
Analysis of Internal and External Factors
The internal market factors that affect China include the political and economic tension. As observed by Spithoven and Teirlinck (2015) the Chinese market is aware of the political factors that exist and the manner in which it can affect the growth of any organisation. However, in the case of development of sports in the country the political factors do not provide a major hindrance. It has been seen that the political activities within the market are more interested in the promotion of its respective groups. Hence, introduction of new sports events or teams in the country can help in the development of the reputation of the political parties. Therefore, the political factors that exist in the country can help in the development of American soccer.
At the same time, as stated by Lin and Wu (2014) the economic factor may play a negative impact on the promotion of the sport. China is a country that the hosts various types of sporting events throughout the year. The introduction of a new sport may cause the economy to weaken, as the citizens will pay the funds that will be collected for its development. Hence, despite the love for sports and the interests of the people, it can be said that the social and economical factors may play a major hindrance as the internal factors of the country.
In this regard, an analysis of the external factors can be considered. The external factor that may have an impact on the development of the American soccer in China is the advertisement and telecast in the media. As pointed out by Hitt, Xu and Carnes (2016) the time difference between the two countries may provide hindrance for the people to witness the sport and thereby viewership of the audience may be lost. The people of the target market country can remain unaware of the method and enthusiasm that exists in the American soccer league and this may be a huge blow for the sponsors of the sport.
Hence, it can be said that the internal and external factors may have a positive as well as a negative impact on the promotion of American soccer in China. A further analysis of the political factor can be made to understand its impact on the country and the manner in which the promotion of American soccer can be affected.
Some of the political factors that may have an impact on the development and promotion of the American soccer in China includes:
Political Factors Affecting Soccer Promotion in China
Increase or decrease in taxes: According to Teece (2014), the decrease in taxes may have a negative impact on the development of the sport. This is because the taxes are normally collected from the people for the development of the economy of the country. In China, most of the people reside in poverty, and the political parties aim to eradicate the poverty so that they can improve the reputation. On the other hand, the increase in the taxes may help in the promotion of the sport. This is because Chinese people love to witness sports and the people will welcome a new enthusiastic competition comprising of foreign soccer stars. Hence, this particular factor may have a mixed impact based on the application of taxes.
Stability of the Government: The stability of Government in China is always a question of concern. Although overthrowing of Government is a rare occurrence, the stability can be a factor as the rights to broadcast the sport or introduce it in the country for people to watch it live may be a hindrance. Hence, Kerr et al. (2016) is of the opinion that the stability of the Government can be a huge negative factor for the development of the sport in the country. At the same time, it is seen that the Chinese people are aware of the economic development that takes place and therefore, Government officials unable to contribute for the development of the society may be overthrown. This can have a negative impact for the promotion of the sport.
Various laws related to the country: The laws related to the country include employment law, discrimination law, anti-trust law, environmental law, health law and others. In the case of promotion of sports in China, the laws can be applied mainly because it may hamper the development of the country. Kerr et al. (2018) is of the opinion that trade relations with America need to be perfect so that the political ties also exist. This can help in promoting the American soccer in the country and may gain an advantage over the Chinese football league.
These factors can be addressed by developing a proper political tie with China and by ensuring that the Chinese environment is analysed. The analysis of the Chinese environment need to be done because it helps in the development of the economy so that progress in the market can be made. The preference of the people also needs to be taken into consideration before making any type of investment in the country. In this regard, an analysis of the cultural factors also needs to be taken into consideration.
Cultural Factors that Impact Sports Promotion in China
The cultural factors that exist in a country dictate its existence by directing a set of beliefs and rituals. The importance of cultural factors is that it helps in distinguishing between the people of various countries and help in gaining knowledge of the various cultures around the world. However, as stated by Kabakova and Plaksenkov (2018) in the case of sports, the cultural factors mostly focus on the sporting culture rather than that of individual country. The cultural implications in sports are developed with the development of the sport and changing it does not always take place. Therefore, it can be said that sports culture associated with soccer or football can be the same in both the US and China.
At the same time, a counter argument can be made on the fact that rules related to the sport or the manner in which the leagues are played may be different. According to Barhamzaid and Alleyne (2018), the Chinese rules football does not boast the presence of many global football stars. However, the American soccer league that is the Major League Soccer, boasts a large number of international stars that have represented the sport for a considerable length of time. Hence, the sporting culture associated with the presence of big players can be a considerable difference that may have a positive impact on the development of the sport in China.
Apart from this, another important consideration includes the culture of the country. The culture of the people of China is different from that of the people of the USA. The feeling of collectivism exists in China rather than in the USA (Liefner, Kroll & Peighambari, 2016). Hence, for a business deal to take place between the two countries based on the development and promotion of the sport in the country, the USA managers of the sport need to abide by the country culture that exists in China. Hence, the analysis of the cultural factor can be considered as important for the development of the American soccer in the country.
These factors can be addressed by conducting a proper analysis of the differential factors that exists between the two countries. The USA Government or the American soccer federation need to be aware of the Chinese Football Association so that the promotion can be done in a proper manner. At the same time, one of the most important factors that need to be considered is the language barrier between the two countries. Hence, communication challenge can be analysed before investing an opportunity to expand the sport in China.
Overcoming Communication Challenges in Expanding American Soccer in China
As stated earlier, one of the most important challenges that may be faced by the American sports while expanding in the Asian market is that of the language. Xie, Chen and Wu (2016) pointed out that most of the countries in Asia do not have the knowledge of speaking English. In China, this is considered as one of the most challenging factors, as the dialect of the language is hard to understand. Hence, this can be also related to a cultural factor that determines the existence and development of the sport in the country. Speaking similar dialect can help in expressing the feelings of the people and at the same time ensure that business deals take place effectively.
In the case of China and USA, the language plays an important role. The cultural difference that exists between the two countries is mainly due to the existence of language barrier. Hence, De Bosscher et al. (2015) stated that communication between delegates of the nation or between the sports ministers, players and associations could be hindered. The communication challenge that exists in this case rests on the fact that business deals cannot be maintained. Therefore, setting up of sports organisation in China or the development of the American sport need to be done based on the communication between the people.
Another communication barrier can be in the form of media that is used for the promotion of the sports. As mentioned earlier, the time difference between China and USA is different and therefore, broadcasting of the sport via television can be a challenge (Ardern et al. 2015). Moreover, the Chinese TV programmes or any other sports that are played during the time need to be rescheduled. Hence, communication with the people and the TV channels can be considered as a problem not only because of the language barrier but also due to the existence of time difference between the countries.
These barriers can be mitigated by taking the assistance of interpreters. People understanding the Chinese language as well as the American English need to be present while negotiation takes place between the delegates. At the same time as stated by Torkfar et al. (2017) while broadcasting the sport in TV, commentary can be made in the local language so that the people can understand the language. In the case of mitigating the time difference problem, a mutual time that can be suited for viewers in both countries need to be identified. This may require the compromising of certain TV programmes from both the countries.
The analysis of the Chinese market particularly in the field of soccer is missing the influence of excellent players. Although China is ranked 75 in the world as per the rankings released by FIFA, the lack of experienced and good quality players play a major role in the development of the sport in the country. According to Edge, Newbold and McKeary (2014), the introduction of the Major League Soccer may provide exposure to the Chinese football players to international players preceding reputation in the FIFA world. Hence, the promotion of the American soccer can help in the development of the sport in China, and the Chinese Football Association can be formed with new rules that can help in the development of the sport.
At the same time, the Chinese Football Association can be enriched with new talents from other sporting areas. It has been seen that some of the big names of soccer, have played in the Chinese league but the league itself is not appreciated by the other leagues around the world. Thus as stated by Ko et al. (2016) this can be considered as one of the reasons for the under development of the league. Hence, the introduction of the Major League Soccer can help in the development of the league in the country and provide young Chinese players with proper exposure to the game.
The Major League Soccer teams can also play certain friendly matches with the Chinese clubs so that player transfer can take place between the clubs. This can help in the development of the Chinese players and at the same time bring a closure to certain differences such as the cultural and language barrier as seen from previous discussion. Therefore, it can be said that the development of the Major League Soccer in China can bring about improvement in the lives of the Chinese people as well as that of the American people (Jensen, 2016). Soccer in both countries can improve and this can have a positive influence in the lives of the players. However, the competitors that exist in the market also need to be analysed.
Every company have competitors against which strategies need to be developed. Similarly, in the case of sports, one sport is always preferred over other. In the case of the soccer, various leagues around the world exist that entertain people. Therefore, as stated by Anderson et al. (2015) Major League Soccer may also be faced with competitors in the Chinese sports market that are directly linked with the sport or are indirectly linked. The direct competition that the Major League Soccer may face is that from the Chinese leagues. Although the Chinese league is not famous around the world, Chinese people would like to encourage the stars from its own back yard so that the promotion of the players and the sport can be done.
At the same time, other soccer leagues such as the La Liga or the Barclays Premier League can be competitors for the sport in the country. As observed by van Osch, Steinfield and Balogh (2015) this is mainly because some of the global stars in the world of football are involved with these leagues and the timings provided by these sports leagues aid in the viewership of the people. Hence, Major League Soccer need to work hard in order to gain a competitive advantage in the Chinese market. The local as well as the foreign soccer league may edge out the development and promotion of Major League Soccer in China.
The indirect competition that may be faced is based on other sports that are played in China. For example, it has been seen that China is involved in participating in hockey tournaments and are a favourite country to win medals during Olympics. Bonaccio et al. (2016) stated that these track and field events provide more interest for the people than the Major League Soccer. The Chinese people would like to support the people of the county participating in hockey world cup or the Olympics and therefore the viewership of the American soccer can decrease in the country. Hence, it can be said that the existence of these competitors need to be mitigated before investing in the development of the sport.
According to Tu (2016), the demography can be an important factor for the development of an organisation as well as for the products. In the case of promotion of sports in a country, the demography factor denotes the customers and the choices they make based on the likes and dislikes of a particular sport. One of the reasons for the development of a successful sport is that the needs and preferences of the customers need to be analysed. Similarly, in the case of the development of soccer in China, the needs and preferences of the people need to be considered. The Major League Soccer need to target the people that aware of the sport and are a keen follower of other soccer leagues around the world.
At the same time, as stated by Valkenburg, Peter and Walther (2016) it can be said that the demography cannot be based on any form of biasness. The biased nature of selection of customers may provide problems in the promotion of sports. The American soccer need to ensure that the development of the sports takes place between the Chinese people of all ages so that interest in the league can increase. It can also help in developing the interest of the people in a manner that can help in the promotion of the sport. The reason behind choosing a large brand of enthusiastic football fans is that the Major League Soccer normally attracts global stars that are aged. Young players belonging to other nations are hardly seen in the league.
Hence, to gain new and young talented stars in the league, the development of the league is vital. Therefore, targeting the young Chinese people for being the prime viewers of the league is one of the main aims of the American soccer leagues (Bartsch et al. 2018). Based on this it can be said that appropriate media channel is required for the promotion of the sport so that it can reach the target customers and at the same time promote the sport all over the country.
The analysis of the competitors needs to be based on the manner in which it promotes its business in a market. The promotional strategies used cannot be applied by every organisation due to lack of finance and other external factors. In the case of the promotion of soccer in China, the promotional strategy or the use of media that is applied by the competitors of Major League Soccer includes social media or television (Raney & Ellis, 2014). The local sports or the leagues are promoted via the use of the television. This can help in communicating the idea and schedules of the sports in the local language. The chosen demography of the young Chinese people can be influenced by the media use of television.
According to Larson et al. (2014), in the case of the competitors from the foreign land, the use of social media is more preferred. This is mainly because the social media can help in the quick promotion of the sport by providing footage of some of the live actions that occur in the sport. In the case of competitors such as the Barclays Premier League or the La Liga, the promotion of the seasons of the leagues is done with the help of stars that represent the leagues. This provides an advantage of reaching the target market and providing an interest in the sports and the leagues.
Similarly, the Major League Soccer can also use the social media to promote the league in China. Some of the big named stars in the league such as Wayne Rooney can promote the league in China in the hopes that it may have a positive impact on the demography. According Michelle and James (2015), the application can help in identifying the interest of the target market and based on the reaction investment on the country can be made. Hence, it can be said that in the modern world, the development of the social media is one of the most important factors that can help in the promotion of the sport in the market. In this regard, an analysis can be made about the differences that Major League Soccer have with the competitors.
After identifying the competitors of Major League Soccer, both from within the country and outside it, analysis can be made to identify the difference between the league and its competitors. One of the major differences is that unlike the Chinese soccer league, the development of the Major League Soccer in China can help in the growth of different skills in football. According to Jin, Ji and Gu (2016), the Chinese soccer league may aid in playing the sport using one form of skill but the application of a different skill set may help in the development of the soccer in the country and among its people.
At the same time, another important point that can be made is the fact that the development of soccer in the country can improve its opportunities of gaining success in the bigger stage. The tips and exposure that the Chinese people may receive from the foreign players participating the Major League Soccer can help in its applicability during global outings such as World Cup or Asia Cup. As observed by Chen and Miller (2015) it can also help China progress in the FIFA rankings and provide its players with opportunities to play in reputed leagues including Major League Soccer. Hence, this can be considered as one of the factors that can help in the development of the country and its people.
Apart from this, another advantage that can be gained from the promotion of the Major League Soccer is that the people can gain an interest in the football. Unlike its competitors, soccer provides an opportunity for development of competitive skill among people. Hence, as stated by Caber, Albayrak and ?smay?ll? (2017) the promotion of a competitive league such as the Major League Soccer can help in building a sense of competition among the Chinese people. This competitive sense is absent in individual sports such as the track and field events. Therefore, an analysis of the price required for the developing the sport in the market can be analysed.
In order to promote a sport in a country, it is necessary to attend sporting events that take place. The sporting events provide an understanding of the development that is required in the sports so that it can help in developing the interest of the people. Similarly, in the case of the American soccer, attending a sporting event is necessary for the development and promotion of sports within the country. However, one of the important aspects that need to be taken into consideration is the pricing associated with the promotion of the sporting events. The pricing includes promotion of the sport as well as setting up meetings with the delegate.
As stated by Fan, Lau and Zhao (2015) the top most pricing that needs to be considered includes the attendance of the sporting events. The attendances of the events seem to be costly as sports leagues around the world and the country are involved. Hence, the price of entering the event is high and the fact that the Major League Soccer is not a rich league in the world of soccer can be difficult for it. The next step is to ensure that the idea about the development of the sport be pitched to the panel. For the Major League Soccer, this can be considered as a challenging factor mainly due to the language barrier that exists.
As stated by Dinnie (2015) the overall cost need to be included in the budget of every soccer club so that it can have enough finances for improvement. The analysis of the Chinese environment and the manner in which the Major League Soccer is set to promote itself in China suggests that the price of expansion into the target market may cost about US$2billion.
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