Nascarbecame founded in 1947 in the United States. It is a car racingcompany where various drivers compete following set of rules andinstructions put in place. It has grown to become a multi-billiondollar company through the support of sponsors who are mostly Fortune500 companies.
Thisanalysis looks at the strengths, weaknesses, opportunities andthreats faced by the organization in relation to the market andindustry that the organization is operating in. the following is theSWOT analysis for the company
It has high viewership in the main television networks since 2004-2011. Networks such as Fox, TNT, ESPN, ABC and NBC all registered high viewership. Viewership was averaging above five thousand consistently within that period. The viewership was highly consistent in the sports entertainment section.
There is a high turnover regarding revenue generated from NASCAR. In 2006 it was 7.855 million in 2010, it was 5.992 million in all the major networks including Fox/TNT/ESPN/ABC.
There is a great partnership between NASCAR and fortune 500 companies who offer sponsorship for more motorsports. Sponsors pay for the logos and appear on the company website. Businesses and corporations sponsor all levels of the motorsports, from drivers to cars, tracks and the World Series. They pay every year to have their names displayed in the winning cars, series and races. For example, the Nationwide Series sponsored by the Nationwide Insurance company.
The presence of F1 increases the popularity of NASCAR. When a bigger company starts to feel competition from a smaller one, it increases its popularity. Such exposure insists the need to know more about the competitive brand.
There is no global presence in the part of NASCAR. They are only present in the US and Canada. In comparison to their competitors, the F1 who are globally known.
NASCAR auto racing faces some fuel regulation difficulties regarding consumption and emission leading to air pollution charges
Driver safety is also a concern from some employed NASCAR drivers. They are faced with the challenge of risking their lives when they get on the tracks.
As seen earlier, there was a drop in viewership in 2010 in comparison to the earlier years of the top sports networks. With the reason for the drop established it is a great task to improve the ratings from that point moving forward.
The expansion is always a key goal of NASCAR. It is a symbol of growth and it is always welcome. Foreign sponsors and manufacturers are seen to aid in the expansion. It is a goal to grow to the same status as F1 therefore, the organization has a growth opportunity.
There also plans to switch to green fuels. They are cheaper, and they do not cause harm to the environment. This makes them environmentally friendly. It is a great movement and requires a lot of research this would help in tapping the profit margins.
There is great competition from F1. The need to grow is great. There is great competition and meeting standards that can ease the competition is a challenge. Great input from sponsors is needed to achieve this.
The pay given to their competitors and the type of car standards is very high in comparison to NASCAR. There is a great room for improvement.
Costly research is required to ease competition
Statementon the Issues and Problems
Nascar does its things traditionally, despite the presence of new technologies. Although using traditional means worked for a long time for the company, the old ways would not work anymore (Anderson & Kilibarda, 2015).
Underinvestment in digital resources
Another problem facing the company is the high fuel prices. This has an adverse effect on the company because the fans drive long distances to get the company’s events (Anderson & Kilibarda, 2015).
The organization’s closed culture that may be viewed as non-collaborative (Anderson & Kilibarda, 2015).
Anderson,E. & Kilibarda, V. (2015). Nascar:Leading a Marketing Transformation in a Time of Crisis.Illinois: Northwestern University.
Fielden,G. (2005). "BeachfrontView". In Editors of Consumer Guide. NASCAR: A Fast History.Lincolnwood, Illinois: Publications International Ltd.
Thehistory of NASCAR (2010). NASCARMedia Group.