Custom «NBA's Overall Strategy» Essay Paper Sample

NBA's Overall Strategy

Michael Porter is well-known for his book Competitive Strategy, Competitive Advantage, and Competitive Advantage of Nations. A book through which he went forth to popularize his three generic strategies on improving profitability. These three strategies are focus on market niche, differentiation and overall cost leadership in no particular order. Organizations which seek to remain profitable in these highly competitive times and operating at a time of growing consumer consciousness on the issue of pricing must adopt suitable strategies as a way of ensuring sustainable growth. Companies can either concentrate on one of these strategies depending on the nature of their mandate or find a way to blend one or more of these strategies to suit their needs. Successfully choosing the right strategy or the right blend is the key towards successful implementation of an organization’s overall objectives.

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The NBA is one of the most competitive and highly watched basketball leagues in the world. The League consists of thirty teams with the combined objectives of making their fans proud through good performance and increasing their revenues through increased attendance, higher TV coverage, better talents and other innovative strategies. In this regard, it can be argued that the NBA’s overall strategy is to ensure equitable distribution of revenue between the clubs and their players and other employees while ensuring that the game does not suffer. In recent times, the League has leaned towards cost-cutting measures by trying to impose a lower cap on players’ salaries and reducing cost of operations and the number of staff. Clubs have blended this strategy with creating luxury suits which target a market segment with high disposable incomes as a way of boosting their revenues. What is clear is that one single strategy is not enough to increase NBA’s revenue and a successful blend of all is necessary to bring growth, prosperity and equity to basketball.

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