Ufc Business Strategy
General Environment The fastest growing sports organization in the world, the Ultimate Fighting Championship (UFC), started in 1993 as a professional mix martial arts (MMA) organization. Once the UFC brand was launched, MMA popularity surged in Brazil, followed by immense interest in Japan where these bouts became major events. The most recent fight in April, UFC sold 55,000 tickets in minutes, became the largest paid audience in North American to witness a mix martial arts event.
They delivered top rating in male 18-34 and 18-49 demographics. Globally, UFC programming is broadcast in over 149 countries and territories, reaching a half a billion homes worldwide, in 20 different languages. Response to the UFC brand of MMA has been tremendous, resulting in a growing fan base that has grown exponentially through the years. So, UFC is very popular to the whole world. Porter’s Five Forces: Threat of New Entrants Threat of new entrants is low because everyone in the world is watching UFC.
UFC is the only mixed martial arts industry in the world, but it is part of fighting sports industry. Power of Suppliers I would say that power of suppliers is high because the whole world is selling UFC’s stuffs. Suppliers are selling UFC apparels, shorts, DVDs, equipments and gears. Some of the suppliers including Affliction are selling UFC’s apparel. Others (Clear Vision) are selling DVD such as work-out or copies of UFC fights. UFC spends a lot on advertisement because they’re one of the most recognizable by the whole world.
The Ultimate Fighting Championship has partnered with Fox for a seven-year broadcast deal through the Fox Sports subsidiary, effectively ending the UFC’s Spike TV and Versus (now NBC Sports Network) partnership. I believe fighters are one of the suppliers because they are paid per fight, with amounts depending on how well-known the fighters are and how well sponsored a fighter and an event is. Fighters will typically get paid money to fight with an additional bonus if they win. Power of Buyers Buyers’ power is really high because UFC is very popular to the world.
The UFC brand completely restructured MMA into a highly organized and controlled compact sports. Now, UFC produces over twelve live Pay-Per-View events annually that are distributed residentially through North American cable and satellite providers including iNDEMAND Networks, DIRECTv, DISH Network, TVN Entertainment, Shaw Pay-Per-View, BellTv, Viewers Choice, SaskTel Max and via the Internet worldwide on UFC. com and Yahoo! , commercially through Joe Hand Promotions. It is very expensive because you have to order Pay-Per-View or DIRECTv to watch UFC.
Substitute I don’t believe there is a substitute because UFC is wrestling, martial art mixed. UFC is a very unique sport, but it is part of fighting sports. So, I believe substitute is very low. There are wrestling, boxing, martial arts mixed, and other fighting sports. Competitor Analysis: Boxing Boxing is a martial art and combat sport in which two people engage in a contest of strength, reflexes, and endurance by throwing punches at an opponent with gloved hands. They can get two most popular, best and recognizable boxers to fight each other.
They have so many passionate fans. They’ve partnered with HBO and SHOWTIME. They are focused on the best fighters from all over the world and give the best show for the world. Internal Industry: Strength UFC is one of the most popular sports, not in just United States, but in the whole world. They have surpassed the boxing on fans’ popularity. They are really high on suppliers’ and buyers’ power. They have sold out their tickets within minutes, not hours or days. Weakness It is not for younger kids to watch UFC because it is a bad image and bad influence for them.
You don’t want to have bullies at schools. UFC are worrying about what the fighters say or do because Advocacy groups have criticized the fighters’ comments as sexist and homophobic. The incidents cited by National Center on Domestic and Sexual Violence include an undated video linked on unfitforchildren. org, in which UFC fighter Quinton “Rampage” Jackson urges a Japanese-speaking fan to say nasty words. Also, people are complained about their advertisement because they showed a half nude woman in one of their commercial with Bud Light Lime. Recommendation