Nevertheless, in order to exploit this international potential, ManUtd must develop and engage in relationship management with both their fan base and international alliances. Glazer must understand the fundamental basis of customer relationship management and the historical value of the ManUtd brand on a global scale in the eyes of the customer. Incremental Internationalization There is undoubtedly a link between being a commercially international successful brand and being a successful soccer team.
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Their success in recent seasons is a viable platform for international competitiveness. When entering into new markets, ManUtd should seek to do so on an incremental basis, as they are in fact an LSE. To gain new supporters and international recognition of their brand, new markets will be most efficiently entered into whilst the team is performing well. Thus giving potential supporters a reason to support the team. This is creating a value proposition for supporters from the outset, rather than trying to establish a fan base whilst the brand is underperforming as a team.
Their recent success therefore allows ManUtd to enter into markets with a solid customer value platform to develop upon, communicate and exploit to their advantage. Furthermore, their recent season results allow them to develop a brand that can potentially demand a high price premium in line with their on-pitch accomplishments. Exporting a Brand Concept ManUtd are prided as being a global brand. Through the exportation of their established and historically built brand concept, ManUtd enable themselves to reduce their dependence on one market.
In order to appeal to international customers, ManUtd need to develop a strategy based on similarities and differences between markets, exploit the knowledge of Head Quarters and transfer the knowledge gained from the existing market to foreign markets. Generating memberships, selling kits and merchandise, engaging in media markets, setting up soccer schools, embarking on tours and developing alliances with local sponsors are standardized elements of their current strategy that can be diversified and adapted to each geographic location in which they which to enter.
The Chinese market presents opportunities and weaknesses that must be understood by Glazer. They are not as exposed to professional sport team culture as Americans are. Establishing a soccer culture in China is a barrier to entry that the American market does not pose. ManUtd would be entering into an established sporting market in America with a potential fan base that may be easier to engage with upon initial entry. The American sporting market is saturated and thus there are plentiful close substitutes.
This poses a challenge to ManUtd to create a loyal fan base and a highly differentiated brand in the American market. Conversely, the Chinese fan base has the potential to be more loyal due to the lack of close substitutes. Furthermore, ManUtd must appeal to the needs of the Chinese market by positing themselves as a brand that allows their followers to enjoy the good life associated with successful Western brands. ManUtd must combine the expertise gained from the English market and the potential alliances that Glazer could provide as an owner of the American Tampa Bay Buccaneers Football team.
Their international strategy must aim to monopolize upon these two international competitive advantages available to them. Being a Global brand requires global representation. By introducing international players Glazer has facilitated their opportunity to gain grassroots supporters in countries from which local players have been signed. A further opportunity for internationalization, in a cost-efficient manner, can be achieved via the utilization of the Internet, TV stations and live mobile broadcasts.
Through global brand recognition, ManUtd have the international competitive potential to monetize on this recognition and popularity to gain revenue to fund the debt caused by the Glazer takeover. Understanding Fan Base Management A critical concern after the takeover by Glazer is whether global domination is being pursued to the detriment of the original and domestic fan base. Lobbyist groups against the takeover are evidence of the extreme loyalty of fans, which Glazer did not appear to understand prior to the takeover. Furthermore, measures to overcome the debt caused by this takeover have furthered the hostility of their fan base.
The firing of employees, lending of players and the rising ticket prices are all measures taken by Glazer post takeover. Fixing the debt problem by pricing tickets at a premium level is leaving the fan base disgruntled. Those most deeply affected are those that provide the most solid platform of revenue to the club. Therefore, if the international competitiveness of the brand is to be acted upon, Glazer must do so in a manner that does not penalize the existing fan base. Glazer must ensure that the benefits of international expansion are passed down to the loyal fans.
