Nascar Case Study
NASCAR CASE
Question #2
A situational Analysis better known as a strategic SWOT lays out a company’s (such as NASCAR) strengths, weaknesses, opportunities and threats. Conducting a SWOT analysis can really help to examine the current environment that a company, like NASCAR, is operating in and can help guide the company to recognize what it needs to improve on and also acknowledge what is working in their favor.
SWOT ANALYSIS
Strengths: are internal and positive. They are something that the business can control and the company will want to exploit these strengths. The following are all strengths of NASCAR:
Top auto racing series in the U.S.
#1 spectator sport in America
Well-known for branding alliances
Second to NFL in popularity
Has women drivers, which increased female fan base to 40%
2nd rated regular-season sport on TV with broadcasts in over 150 countries
The awareness people have of NASCAR is unmatched by any other sport
Weaknesses: are internal and negative. Similar to the strengths this is something that the business can control. However, the company will want to fix these or minimize these weaknesses as much as possible. Some weaknesses of NASCAR are:
France family is the main stockholder and has too much power (dictatorship)
Declining attendance due to economic recession
Safety concerns
Environmentally irresponsible
Partners/ sponsors having financial difficulties
Co-branding experts say the sport is becoming “flooded” with sponsorships and has a cluttered environment
Price for sponsorships has increased
Opportunities: are external and can potentially be positive. Opportunities can consist of competitors, social changes, technology, economic conditions and legal factors. Opportunities are not always something the company can control but they can recognize the issue and turn it into an opportunity to improve the company. NASCAR has done an incredible job of this. Some examples to prove this are:
The company is constantly in need of new fans, so every year Hollywood creates a film with a stock-car-related theme to keep brand awareness out there for new generations.
The company had a $225 million dollar lawsuit against them for racial and sexual discrimination; in return NASCAR