CRITICAL ANALYSIS INDUSTRY ”SPORTS MANAGEMENT”

Submitted To: Dr.Ritu Srivastava

Group 24 – Four Aces

N523 - Anshuman Priyadarshi Mishra - 80012400977

N524 - Aaditya Malik - 80012400980
N525 - Ankush Jaiswal - 80012400922
N526 - Rupantak Shekhar - 80012401008

Table of Contents
1. Introduction
2. Porter’s Five Forces Analysis
o Threat of New Entrants
o Bargaining Power of Suppliers
o Bargaining Power of Buyers
o Threat of Substitutes
o Industry Rivalry
3. BCG Matrix Analysis
o Stars: Cricket
o Cash Cows: Kabaddi
o Question Marks: Football and E-sports
o Dogs: Athletics
4. External Factor Evaluation (EFE) Matrix
o Key External Factors and Weighted Scores
o Interpretation of the EFE Matrix
5. Value Chain Analysis
o Primary Activities
o Support Activities
6. Resource Allocation Analysis
o Current v/s Recommended Allocations
o Key Areas for Strategic Investment
7. Conclusion and Recommendations
o Strengthening Digital Presence
o Diversifying Sports Portfolio
o Infrastructure and Resource Optimization
o Building Partnerships
8. Appendices
o Additional Data and Supporting Documents
Sports Industry in India: Strategic Analysis Report
Introduction
In India, the sports vertical has changed over the last decade, fueled by rising interest in
multi-sports, extensive media coverage, and active government intervention. The traditional
monopoly of cricket over Indian sports has diversified to include football, kabaddi,
badminton, e-sports, and athletics, among several other emerging sports. This diversification
has attracted several other major stakeholders apart from sports enthusiasts, athletes, sports
franchises, broadcasters, sponsors, and equipment manufacturers.
Initiatives like Khelo India and Fit India catalyze the growth to improve awareness of sports
at the grassroots for building an active lifestyle and culture of fitness.The need for live sports
content and the emergence of digital platforms have put India's sports sector in a unique
position for expansion and innovation.
In this paper, an in-depth analysis of the Indian sports industry employing various
frameworks such as Porter's Five Forces, the BCG Matrix, the EFE Matrix, and value chain
analysis is presented. Based on these analyses, the report provides development strategies and
suggestions for growth, as well as competitiveness and resource utilization to support
longevity.
PORTER’S 5 FORCES MODEL

1. Threat of New Entrants

Overview:
New entrants to the sports industry face challenges due to high start-up costs, competition
from established players, and the need for huge investments in talent, infrastructure, and
marketing in the sports industry. However, measures from the government-supporting sports
development encourages more players to enter niche markets.
Key Factors Influencing Entry Barriers:
 Established Leagues and Brand Loyalty: Events like the IPL and ISL have very
high brand worth, hindering new leagues' ability to compete with sponsorship and
audience.
 High Capital Investment: High start-up capital is needed to set up a new league, get
teams established, build stadiums, and build digital infrastructure.
 Government Support and Incentives: By reducing obstacles to entry for grassroots
and less well-known sports, initiatives like Khelo India and the Fit India Movement
are drawing in niche audiences.
 Media and Broadcasting Rights: High cost and complexity in securing media
partnerships and broadcasting rights
Overall Threat Level: Moderate to High
Implications: Government backing for regional sports and minor leagues encourages new
players to enter niche sports, despite the difficulty of entering big leagues.

2. Bargaining Power of Suppliers

Overview:
Suppliers in the sports industry include athletes, coaches, training facilities, equipment
manufacturers, and sponsors. The availability of top-tier talent and equipment can
significantly impact the quality and success of sports organizations.
Key Factors Influencing Supplier Power:
 Talent and Sponsorship Scarcity: Limited availability of elite athletes and skilled
coaches raises their bargaining power. Top players demand high salaries, and limited
sponsors can dictate terms.
 Dependence on Equipment and Merchandise Providers: High reliance on sports
brands like Nike, Adidas, and Puma for merchandise and equipment grants these
brands moderate power. However, competition among these suppliers somewhat
balances their influence.
 Specialized Training and Facilities: Access to specialized facilities and training can
be expensive and limited, increasing supplier power for franchises and leagues that
depend on these services.
 Exclusive Sponsorship Deals: Major brands often enter into exclusive sponsorship
deals with popular leagues or teams, granting them control over pricing and
promotional terms.
Overall Bargaining Power: Moderate to High
Implications: Limited availability of high-quality talent and sponsors gives suppliers
significant leverage, especially in cricket and emerging sports where top-tier talent is
essential.

3. Bargaining Power of Buyers

Overview:
In the sports sector, broadcasters, corporate sponsors, and spectators are the main consumers.
Since their support and demand have a direct impact on ticket sales, item sales, viewership,
and sponsorship agreements, they have significant bargaining power.
Key Factors Influencing Buyer Power:
 Diverse Options for Fans and Viewers: With available and easily accessible leagues
such as cricket, football, and kabaddi, a number of leagues by means of digital
 platforms, remain under observation by fans for preference. Consequently, leagues are
pressured to maintain the audience viewership of their matches.
 Corporate Sponsors’ Influence: Sponsors have significant power as they bring in
substantial capital required for sustainability of league. They may impose terms on
sponsorship deals, drive marketing strategies, and other expressive matters
 Demand for Quality Experiences: The modern-day viewer expects quality
experiences-live streaming options, fan engagement on social media, and interactive
content.
 Broadcast Rights: The growing prevalence of digital forms of media centering on
these kinds of sports brings these huge technical companies that broadcast the
matches. The more switching behavior among viewers for different sports, the more
power they have.
Overall Bargaining Power: High
Implications: In order to keep fans loyal and draw in sponsorship, leagues are forced by the
strong negotiating power of purchasers to constantly innovate, enhance fan interaction, and
provide high-caliber, easily available content.

4. Threat of Substitutes
Overview:
Alternative forms of entertainment and physical activities poses threat. With the emergence
of digital entertainment, e-sports also represent a significant substitution threat, as these
alternatives have a particularly strong allure among young people.
Key Factors Influencing Substitute Threat:
 Digital Entertainment: streaming services such as Netflix, YouTube, and gaming
platforms can be strong substitutes for sports since they present different alternatives
for consumers. The increasing popularity of e-sports and video games also provides
younger audiences with entertainment options that are interactive and digital-first.
 Leisure and Fitness Activities: Gym workouts, yoga, and adventure sports have
gained appeal as lifestyle choices, engaging people who may have otherwise dealt
with traditional sports.
 Low Switching Costs: the cost of switching is low or even negligible to shift from
one form of entertainment to another.

Overall Threat Level: High

Implications: high threat of substitutes demands a strategic focus on digital fan engagement
and innovation in content development to rival digital entertainment.
5. Industry Rivalry
Overview:
The Indian sports industry faces intense rivalry among leagues, teams, and media entities,
driven to win audiences, sponsorship rate, and brand loyalty. Cricket and football remain the
highly contested sports, while growing rivalries develop in other sporting fields also.
Key Factors Influencing Rivalry Intensity:
 Number of Competitors: Many leagues and franchises compete against each other
for fan, sponsorship and media coverage in popular sports, especially cricket, thereby
escalating competition levels.
 Media Contracts and Sponsorships: Rivalry intensifies as teams and leagues
compete for media and sponsorship contracts. This competition for prime time slots
and high-profile sponsors raises the intensity of competition.
 Low Differentiation: Many sports leagues offer similar experiences for fans, leading
to higher competition. Leagues strive for differentiation, developing exclusive
content, promotional events, and community outreach initiatives.
Overall Rivalry Intensity: High
Implications: High competition pressures sports franchises and leagues to differentiate
themselves through unique fan experiences, competitive pricing, and innovative marketing
strategies.
BCG MATRIX
1. Stars: High Market Share, High Growth Rate
Segment: Cricket
 Market Growth Rate: High, with a CAGR of approximately 12-15% over recent
years, primarily due to IPL’s massive success and year-round cricket events.
 Relative Market Share: High, as cricket dominates in viewership, sponsorship, and
advertising revenue.
Characteristics and Insights:
 Cricket is India’s most commercially successful sport, with robust fan engagement,
established leagues, and significant broadcast and sponsorship deals.
 The IPL (Indian Premier League) contributes a substantial portion of cricket’s revenue
and is one of the richest sports leagues globally.
 Media rights, sponsorships, and merchandise sales continue to see high demand,
making cricket an attractive investment area.
Strategic Recommendation:
Continue making large investments to profit from cricket's popularity. Investigate global
alliances and digital engagement tactics, particularly for OTT platforms, to draw in.

2. Cash Cows: Moderate Market Share, Moderate Growth Rate

Segment: Kabaddi
 Market Growth Rate: Moderate, with a CAGR of around 8-10% due to the success
of the Pro Kabaddi League (PKL) and grassroots support.
 Relative Market Share: Moderate, particularly strong in Tier 2 and Tier 3 cities with
growing popularity among rural audiences.
Characteristics and Insights:
 Kabaddi has tapped into India’s regional markets, attracting a unique fan base and
steady television ratings.
 The Pro Kabaddi League (PKL) has established itself as a well-followed domestic
league, with season viewership nearing other sports leagues.
  Sponsorship revenue and fan loyalty remain stable, with less reliance on foreign
players, reducing operational costs.
Strategic Recommendation:
Steady investment in Kabaddi, as it yields reasonably assured returns. The PKL should put its
focus on regional sponsorships and setting up Kabaddi in smaller towns and adopt digital fan
engagement tools to increase its wide accessibility. Kabaddi may also explore expansion to
international markets: Iran and South Korea..

3. Question Marks: Low Market Share, High Growth Rate

Segments: Football, E-sports
a) Football
 Market Growth Rate: High, with increasing popularity and investments in leagues
like the Indian Super League (ISL).
 Relative Market Share: Low compared to global football markets and cricket in
India.
Characteristics and Insights:
 Football is one of the most passionately followed sports in the country, especially
within states like West Bengal, Kerala, and Goa. There has been huge growth ever
since the announcement of the Indian Super League.
 Global interest in football is on the rise in India, particularly due to the visibility of
European leagues.This could be seen as an opportunity to engineer growth for the
domestic league.
 Key challenges include limited infrastructure, lower revenue from sponsorships
compared to cricket, and lower player salaries.
Strategic Recommendation:
Increase investment to capitalize on the growing interest. Build infrastructure, enhance
grassroots programs, and strengthen partnerships with international clubs to create long-term
fan loyalty. Market football among younger demographics to build a future fanbase and focus
on digital broadcast opportunities to increase viewership.
b) E-sports
 Market Growth Rate: Very High, with rapid growth in gaming interest and digital
accessibility.
 Relative Market Share: Low, as e-sports is still in a nascent stage and lacks the
infrastructure of traditional sports.
Characteristics and Insights:
  India’s young population and high mobile penetration make e-sports an emerging
segment with significant potential.
 Increasing investments are being directed towards professional gaming tournaments,
online gaming platforms, and content creation.
 Sponsorship and viewership revenue is still low but projected to increase as industry
maturity grows.
Strategic Recommendation:
Aggressively invest in the e-sports infrastructure to build up this growing market.
Collaboration with international gaming tournaments, investment in high-quality streaming
technology, and hosting large-scale events can attract viewers. Target college and university
students as they form a large base of potential viewers and participants.

4. Dogs: Low Market Share, Low Growth Rate

Segment: Athletics
 Market Growth Rate: Moderate, with growth supported by government programs
like Khelo India.
 Relative Market Share: Low, as athletics lacks mainstream popularity and
commercial interest.
Characteristics and Insights:
 Athletics struggles to capture viewership, media rights, and sponsorship deals on the
same scale as sports like cricket and football.
 Although there is interest in track and field, particularly around the Olympics,
sustained engagement is low.
 Limited infrastructure and training facilities for athletes restrict market growth.
Strategic Recommendation:
Minimize further investment in athletics from a commercial perspective, focusing instead on
government and social initiatives for talent development. Partner with educational institutions
and local governments to develop athletic talent at the grassroots level. Increased investment
may yield results in viewership only if athletes perform on the global stage consistently
EFE MATRIX

Weighted
Weight Rating Explanation
Score

Key External Factors

With more income, India's middle class

has an increasing willingness to spend on
Growing Middle Class with
0.15 4 0.60 sports events, merchandise, and
Disposable Income
subscriptions, boosting revenue streams in
the industry.

Programs like Khelo India, sports

infrastructure investments, and policies
Government Support for
0.10 4 0.40 supporting sports participation create a
Sports Initiatives and Policies
favorable ecosystem for sports
development.

OTT platforms increase viewership

accessibility, allowing sports to reach a
Digital Media and OTT
0.15 4 0.60 wider audience and providing new
Expansion
monetization options through digital
advertising and subscriptions.

The large and growing youth

demographic in India drives a demand for
Rise in Youth Population
0.10 3 0.30 varied sports content, from traditional
Interested in Sports
cricket to emerging sports, presenting
opportunities for engagement.

As people become more health-conscious,

demand for fitness-related sports like
Increasing Interest in Health
0.05 3 0.15 running and cycling is rising, contributing
and Fitness
to the growth of sports-related events and
products.

E-sports and fantasy leagues have gained

Emergence of E-sports and immense popularity, especially among
0.10 4 0.40
Fantasy Sports younger demographics, diversifying the
sports industry and attracting sponsors.

High competition among cricket leagues

Competitive Rivalry and
and between traditional sports limits
Saturation of Traditional 0.05 2 0.10
growth and market share for newer
Sports
leagues.

Operational costs, including player

High Operating Costs and salaries and stadium upkeep, make league
0.10 2 0.20
League Sustainability Issues profitability challenging, especially for
newer or less popular sports leagues.

Economic downturns reduce corporate

Economic Fluctuations
0.05 2 0.10 sponsorship budgets, negatively affecting
Impacting Sponsorship
sports leagues' financial stability.

Growing awareness and viewership for

Total Weighted Score: 3.10
Interpretation
With a score of 3.10, the EFE Matrix suggests that the sports industry in India has more
opportunities than threats in its external environment. Key opportunities, such as growing
digital media, government support, and increasing disposable income, contribute significantly
to the industry’s potential for growth. However, high operating costs and competitive
saturation in traditional sports present notable challenges.

VALUE CHAIN ANALYSIS

Value Chain Analysis helps identify critical activities and processes that create value in the
sports industry.
Primary Activities
 Inbound Logistics: Procurement of equipment, talent acquisition, training, and
facility management.
 Operations: Management of sports events, leagues, and matches.
 Outbound Logistics: Broadcasting rights, merchandising, and ticket sales.
 Marketing & Sales: Sponsorships, advertising, digital marketing, and fan
engagement.
 Service: Fan experiences, customer support, and post-game engagement.
Support Activities
 Infrastructure: Investments in stadiums, training facilities, and digital platforms.
 Technology Development: Use of data analytics for team performance and fan
engagement.
 Human Resource Management: Recruitment, training, and management of athletes
and staff.
 Procurement: Partnerships with suppliers for sports gear, merchandise, and
broadcasting equipment.

RESOURCE ALLOCATION ANALYSIS

Resource Allocation Analysis identifies areas where resources are allocated within the sports
industry in India.
 Current Recommended
Resource Area Remarks
Allocation (%) Reallocation (%)

Moderate reduction,
Talent Acquisition 25% 20%
reallocate to digital

Reduce with focus on

Infrastructure 30% 25%
existing facility use

Marketing & Increased to leverage

15% 20%
Sponsorship digital engagement

Digital Increased for fan

10% 20%
Transformation engagement and analytics

Research & Stable for innovation in

5% 5%
Development training methods

Community Minor reduction, reallocate

15% 10%
Engagement to technology

Key Recommendation: Reallocate resources towards digital transformation and marketing

for enhanced fan engagement and reach.

CONCLUSION AND RECOMMENDATION

 Strengthen Digital Presence: Invest in digital media and fan engagement tools to
capture younger audiences.
 Diversify Sports Portfolio: Allocate resources to develop emerging sports like
football and e-sports.
 Enhance Infrastructure: Use existing resources effectively rather than extensive
new investments.
 Build Partnerships: Collaborate with technology and media companies to increase
revenue streams.