Real Madrid - the Business
Real Madrid - The Business
1. Analyze Real Madrid 's business strategy using the value chain and competitive forces models. Why has the team been so successful?
Value chain analysis: [1]
Primary activities:
Operations - Here we can consider all the activities related with the team, including played games. We can think about a game as a performance, which the team sells among other things. Every time the team enters the pitch, Real Madrid is producing a product that sells.
Marketing and Commercialization - Clearly this is where Real Madrid focuses its activity. We can refer the way the club takes advantage of the player 's image to promote itself and make money. The Real Madrid name is treated as valuable brand such as Coca-Cola for instance. Real Madrid offer 's its products in its own stores and makes it possible to distribute its products over other distribution channels like the web.
Service - In this topic I consider important to refer all the service provided to the members of the club. Being a member has some benefits, like having access to tickets at a low price. The web-site has a section dedicated to the "socios".
In these primary activities I don 't consider the inbound or outbound logistics, since it seems that it doesn 't apply to this kind of organization.
Support Activities:
Administration and Management We can point out here the structure of the organization, and the executive staff composed by experienced managers. A good management team is a key element to achieve success. The internal organization reflects the club needs and every team knows exactly what it is expected to do.
Human- Resources I would refer here the policy of professionalize the management team, but also very important the existence of internal mechanisms that evaluate employee performance making it possible to reward and recognize the good work. This system suffered some changes to be more transparent and fair, so the employee motivation can increase. Motivated
1. Analyze Real Madrid 's business strategy using the value chain and competitive forces models. Why has the team been so successful?
Value chain analysis: [1]
Primary activities:
Operations - Here we can consider all the activities related with the team, including played games. We can think about a game as a performance, which the team sells among other things. Every time the team enters the pitch, Real Madrid is producing a product that sells.
Marketing and Commercialization - Clearly this is where Real Madrid focuses its activity. We can refer the way the club takes advantage of the player 's image to promote itself and make money. The Real Madrid name is treated as valuable brand such as Coca-Cola for instance. Real Madrid offer 's its products in its own stores and makes it possible to distribute its products over other distribution channels like the web.
Service - In this topic I consider important to refer all the service provided to the members of the club. Being a member has some benefits, like having access to tickets at a low price. The web-site has a section dedicated to the "socios".
In these primary activities I don 't consider the inbound or outbound logistics, since it seems that it doesn 't apply to this kind of organization.
Support Activities:
Administration and Management We can point out here the structure of the organization, and the executive staff composed by experienced managers. A good management team is a key element to achieve success. The internal organization reflects the club needs and every team knows exactly what it is expected to do.
Human- Resources I would refer here the policy of professionalize the management team, but also very important the existence of internal mechanisms that evaluate employee performance making it possible to reward and recognize the good work. This system suffered some changes to be more transparent and fair, so the employee motivation can increase. Motivated
References: [1] Laudon, Pág. 92 [2] Laudon, Pág, 99 [3] www.microsoft.com [4] Keystone, business and finance magazine, Fall 2004, Pág. 6 [5] Hala Madrid: Managing Real Madrid Club de Fútbol, the Team of the Century, Harvard Business School case study