Major League Soccer: Past, Present, and Future SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Major League Soccer: Past, Present, and Future
As it approaches its 20th anniversary, Major League Soccer (MLS), the top professional soccer league in the United States and Canada, has the wind in its sails. Whether it's new TV deals, the massive hiring of European and South American stars, or club and stadium expansions, the league is seeking to build momentum to compete with the major European and Mexican leagues as well as with rivals in the other professional sports leagues in North America, where the market is undergoing a radical demographic shift. However, MLS still has a long way to go to fulfill its ambitions: there is a high level of competition, the league's financial situation is shaky, its governance structure is complex, and the quality of play remains inferior to that of the major soccer leagues. This case traces the evolution of the league since its creation and draws a portrait of the business context within which MLS is seeking to make its mark.
Authors :: Sebastien Arcand, Jerome Bilodeau, Joseph Facal
Swot Analysis of "Major League Soccer: Past, Present, and Future" written by Sebastien Arcand, Jerome Bilodeau, Joseph Facal includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that League Mls facing as an external strategic factors. Some of the topics covered in Major League Soccer: Past, Present, and Future case study are - Strategic Management Strategies, Corporate governance and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Major League Soccer: Past, Present, and Future casestudy better are - – increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, increasing inequality as vast percentage of new income is going to the top 1%, competitive advantages are harder to sustain because of technology dispersion, digital marketing is dominated by two big players Facebook and Google, increasing government debt because of Covid-19 spendings, increasing transportation and logistics costs,
central banks are concerned over increasing inflation, geopolitical disruptions, etc
Introduction to SWOT Analysis of Major League Soccer: Past, Present, and Future
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Major League Soccer: Past, Present, and Future case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the League Mls, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which League Mls operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Major League Soccer: Past, Present, and Future can be done for the following purposes –
1. Strategic planning using facts provided in Major League Soccer: Past, Present, and Future case study
2. Improving business portfolio management of League Mls
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of League Mls
Strengths Major League Soccer: Past, Present, and Future | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of League Mls in Major League Soccer: Past, Present, and Future Harvard Business Review case study are -
Learning organization
- League Mls is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at League Mls is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Major League Soccer: Past, Present, and Future Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Highly skilled collaborators
– League Mls has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Major League Soccer: Past, Present, and Future HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
High switching costs
– The high switching costs that League Mls has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Training and development
– League Mls has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Major League Soccer: Past, Present, and Future Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Analytics focus
– League Mls is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Sebastien Arcand, Jerome Bilodeau, Joseph Facal can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For League Mls digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. League Mls has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High brand equity
– League Mls has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled League Mls to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Strong track record of project management
– League Mls is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Cross disciplinary teams
– Horizontal connected teams at the League Mls are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Innovation driven organization
– League Mls is one of the most innovative firm in sector. Manager in Major League Soccer: Past, Present, and Future Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Low bargaining power of suppliers
– Suppliers of League Mls in the sector have low bargaining power. Major League Soccer: Past, Present, and Future has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps League Mls to manage not only supply disruptions but also source products at highly competitive prices.
Ability to recruit top talent
– League Mls is one of the leading recruiters in the industry. Managers in the Major League Soccer: Past, Present, and Future are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Weaknesses Major League Soccer: Past, Present, and Future | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Major League Soccer: Past, Present, and Future are -
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, League Mls is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Major League Soccer: Past, Present, and Future can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Aligning sales with marketing
– It come across in the case study Major League Soccer: Past, Present, and Future that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Major League Soccer: Past, Present, and Future can leverage the sales team experience to cultivate customer relationships as League Mls is planning to shift buying processes online.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Major League Soccer: Past, Present, and Future, it seems that the employees of League Mls don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Slow to strategic competitive environment developments
– As Major League Soccer: Past, Present, and Future HBR case study mentions - League Mls takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of League Mls supply chain. Even after few cautionary changes mentioned in the HBR case study - Major League Soccer: Past, Present, and Future, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left League Mls vulnerable to further global disruptions in South East Asia.
Increasing silos among functional specialists
– The organizational structure of League Mls is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. League Mls needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help League Mls to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, Sebastien Arcand, Jerome Bilodeau, Joseph Facal suggests that, League Mls is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
High operating costs
– Compare to the competitors, firm in the HBR case study Major League Soccer: Past, Present, and Future has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract League Mls 's lucrative customers.
Capital Spending Reduction
– Even during the low interest decade, League Mls has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Interest costs
– Compare to the competition, League Mls has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Products dominated business model
– Even though League Mls has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Major League Soccer: Past, Present, and Future should strive to include more intangible value offerings along with its core products and services.
Opportunities Major League Soccer: Past, Present, and Future | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Major League Soccer: Past, Present, and Future are -
Lowering marketing communication costs
– 5G expansion will open new opportunities for League Mls in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. League Mls can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Manufacturing automation
– League Mls can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Redefining models of collaboration and team work
– As explained in the weaknesses section, League Mls is facing challenges because of the dominance of functional experts in the organization. Major League Soccer: Past, Present, and Future case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, League Mls can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for League Mls in the consumer business. Now League Mls can target international markets with far fewer capital restrictions requirements than the existing system.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. League Mls can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. League Mls can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Better consumer reach
– The expansion of the 5G network will help League Mls to increase its market reach. League Mls will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, League Mls can use these opportunities to build new business models that can help the communities that League Mls operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help League Mls to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Learning at scale
– Online learning technologies has now opened space for League Mls to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for League Mls to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for League Mls to hire the very best people irrespective of their geographical location.
Building a culture of innovation
– managers at League Mls can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
Threats Major League Soccer: Past, Present, and Future External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Major League Soccer: Past, Present, and Future are -
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, League Mls can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Major League Soccer: Past, Present, and Future .
Environmental challenges
– League Mls needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. League Mls can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Regulatory challenges
– League Mls needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents League Mls with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Consumer confidence and its impact on League Mls demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
Stagnating economy with rate increase
– League Mls can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Technology acceleration in Forth Industrial Revolution
– League Mls has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, League Mls needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of League Mls business can come under increasing regulations regarding data privacy, data security, etc.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of League Mls.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Major League Soccer: Past, Present, and Future, League Mls may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Shortening product life cycle
– it is one of the major threat that League Mls is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Weighted SWOT Analysis of Major League Soccer: Past, Present, and Future Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Major League Soccer: Past, Present, and Future needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Major League Soccer: Past, Present, and Future is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Major League Soccer: Past, Present, and Future is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Major League Soccer: Past, Present, and Future is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that League Mls needs to make to build a sustainable competitive advantage.