Organizational Philosophy of Bam
Problem Statement:
BAM has to decide whether to design an application for Apples new product I-pad or not. If BAM designs a new app, then there are following decisions to make:
How to name the i-Pad app?
Whether to offer live games for free or a la-carte within I-pad app?
How to price the I-pad app?
Objective:
Organizational philosophy of BAM is to be first on any new device and be leaders by taking first movers advantage. BAM wants to provide unique user experience with a new app on an interactive device like an I-pad.
Situation Analysis:
By 2010, BAM had 475 employees and expected annual revenues of $475 million. It had become the darling of digital sports media industry. BAMs revenue came from ticket sales, paid content, advertising/sponsorship and merchandising on MLB.com. MLB.TV allowed subscribers to watch live games and MLB premium allowed subscribers to watch premium matches on personal computers which were not telecasted in other sports channels.
BAM offered “At Bat” application for i-Phone and i-Pod users as a premium product. At Bat first offered free matches for MLB.TV subscribers and non subscribers can watch 2 live matches in a day. After a few months BAM introduced a la-carte in At Bat. A year later At Bat was present on more than 200 digital wireless devices. At Bat was priced at $14.99.
The target market is everyone using a smart phone and interested in baseball or fans of baseball. Consumers use this app to watch live matches, get scores and audio streaming. This app facilitates them to follow baseball games on the go.
Increasing BAMs revenue will improve competitive balance because its revenue is shared amongst the league. The target market slightly differs for an iPad app because of interactive features and premium pricing of iPad. Apples iPad serves as an opportunity to grow BAMs mobile product