Barcelona Analysis

1. Introduction 2. External analysis + data for the basis 3. Key drivers 4. Building scenarios 5. Internal analysis 6. SWOT 7. Organiaztional structure 8. Stakeholders 9. Conclusion 10. Bibliography 1. INTRODUCTION: “Blue and claret blowing in the wind. One valiant cry. We’ve got a name that everyone knows: Barça, Barça, Baaarça!” So runs the battle hymn of FC Barcelona (aka Barça), the Catalan soccer club that won the UEFA Champions League — the world’s most prestigious inter-club soccer championship.”1 In total with 23 Spanish League championships, 27 Copa Del Rey titles, and, after this last victory, as many as five Champions League trophies under its belt, Barca has earned a unique place in football. But mainly it’s also a successful business: the team’s net worth, according to Forbes, was $3.16 billion, making it the world’s second most valuable sports team, while its revenues touched $657 million, the fourth highest among soccer clubs (after Real Madrid, Manchester United, and Bayern Munich) in 2014. But even big teams have challenges and these numbers don’t necessarily mean that the team is doing great 2. EXTERNAL ANALYSIS Competitive industry: THE 5 FORCES. This analysis shows rivalry between competitors. Rivalry between existing competitors: Low. Large football industry is positive for FC Barcelona because multiple companies can prosper without stealing a market from each other. Threat of new entry: Low. It is hard to get into the top league, it needs a lot of resources such as a lot of money, knowledge and great sport results. Customers (fans) are usually loyal to existing, famous brands or clubs. Threat of substitute: Low. Majority of customers, fans are loyal to FC Barcelona, so the threat of substitute is low. FC Barcelona is trying to come up with different products which means that customers are less likely to find comparable product or services that meet their needs. That’s good for them. Only problem can be if some famous player leaves the team, in that case some of the loyal fans of the player will leave too. 1 https://hbr.org/2015/06/what-makes-fc-barcelona-such-a-successful-business) Bargaining power of buyers: Limited number of substitutes means that customers cannot easily switch to other products or services of similar price and still receive the same benefits. High switching costs positively affect FC Barcelona. When customers require special customizations, they are less likely to switch to producers who have difficulty meeting their demands. Buyer customization positively affects the team. Large numbers of customers are good for the team because they tend to have bargaining leverage. When buyers are less sensitive to prices, prices can increase, and buyers will still buy the product. Inelastic demand positively affects FC Barcelona. Bargaining power of suppliers: Low. The more diverse distribution channels become the less bargaining power a single distributor will have. High levels of competition among suppliers acts to reduce prices to producers. Both of them are good for FC Barcelona because they have a lot of suppliers. 2 3 3. Key drivers “ Strategies are shaped by both external and internal forces. External drivers include competition, markets, laws, taxes, customer needs and technological change. Internal drivers include profit goals, mission and office politics.”4 Sustainability: Fc Barcelona takes sustainability very seriously. The Barça Campus will be a benchmark in sustainability and the first sports campus in the centre of a large city to receive the gold standard. The club uses smart criteria and connectivity according to energy efficiency criteria and sustainability in their facilities. Social: Fc Barcelona football club has social impact too. Integration of the Campus in the neighbourhood, improved accessibility and enhanced quality of the space is their plan. 5 4. Building scenario Barcelona has a very ambitious strategic scenario until year 2021: ˝to become the most admired, loved and global sporting institution in the world. Admired because of its sporting results and the way it achieves them, loved because of its bond with its members and supporters’ clubs and its social commitment and impact, and global because of its commercial and brand development. ˝ 6 There were few lines of strategy made. As an example, they are working on sporting excellence - meaning they would like each professional section to win 1 of every 3 titles each season and develop comprehensive training of all our athletes. Secondly, they are working on social implication meaning fo example to reach 1 million child beneficiaries of the Foundation’s projects or deploy foundation activities in each of the 42 Catalan counties. Furthermore, they are working on brand and global positioning meaning to consolidate the brand’s position in priority markets. The last thing they want to 2 https://www.fcbarcelona.com/en 3 http://www.wikiwealth.com/five-forces:fc-barcelona 4 https://business.simplicable.com/business/new/what-are-strategic-drivers 5 https://www.fcbarcelona.com/en/card/1629296/sustainability 6 https://www.fcbarcelona.com/en/club/organisation-and-strategic-plan/commissions-and-bodies/strategic-plan-2015- 21?fbclid=IwAR20VeLMI_aGGccAsULAOczN8j0ZvsTue5-foEiNzvRpOmrVWzf6hFv0ZeU# have better financial management and they want to keep their club sustainable. They were also looking at developing the ecosystem for innovation at the club. 5. INTERNAL ANALYSIS Due to internal analysis it´s important for every club or company to make a VRIO analysis to see and fully understand where they stand on the market. What makes them as a company different and valuable. VRIO Analysis is a strategic management tool used to analyse internal strengths and resources of a company. It helps to identify which of its internal strengths and resources can be a source of lasting competitive advantage. VALUE - Barca is supplying a value-added product, which doesn´t only obtain high margins for the business but is also useful for the customer. Smoked fish and shellfish items are considered valueadded products and therefore it offers absolutely value to the market as well as to the business owner. INIMITABILITY - The company created barriers to market entry for new entrants by encouraging customers to demand selection requirements. Not only has this made the service unusual, it has actually increased the cost of entry for specific players, as new entrants cannot match the diversification and versatility. RARITY - Long-term relationships with consumers, which in fact have led to the brand's commitment, and continuous support for quality control by the previous party is another factor that gives it a competitive advantage. 7 6. SWOT ANALYSIS Strengths • The biggest strength of FCB is the sense of collectivism that they share as a team. The sense of unity. They are famous for their unity. • Barca ensures that their players get proper training. Many of the top stars of Barcelona such as Messi, Iniesta etc. have been trained rigorously here. • The members, as well as players of FCB, follow a clear philosophy that football has to be played with an artistic skill and there is no correlation between strength and size and the ability to play football. • Barca has always been associated with the top players in soccer and has been associated with a lot of big names and legends of the game. Some of the big names associated with BFC as of this season include Iniesta, Neymar, Suarez, Piqué, Jordi Alba, 7 https://casesteam.com/ivey/fc-barcelona-mes-que-un-club/ and Lionel Messi. These players have also been trained by top grade coaches. Strong association with top players makes Barca very strong. Weaknesses • Barca struggles with managing costs mostly. That puts their club to weakness. • Lower popularity compare to clubs from the United Kingdom and the USA like Manchester United and Liverpool, BFC is a less prominent and popular club. • Management has been a little struggle in this club mostly because of that people may be from different cultures and vary in ethnic orientation and even color of the skin. There often are cultural troubles and issues that need to be solved which keeps the club weaker. Opportunities • There are a number of league matches happening across the world and countries like India, China etc. are hosting leagues like Hero India Premier Soccer League or other such matches. Threats • Competition is always the main threat in sport. The main competitors of Barcelona Football Club are Arsenal, Liverpool, Manchester United, and AC Milan. • In soccer there is always a huge risk of losing players.Most clubs are willing to buy out new players and clubs are at-risk of losing their good players. Losing a good player is a huge threat for every sport club not only in soccer. 7. ORGANIZATIONAL STRUCTURE In FC Barcelona they follow bureaucratic organization structure. This type of organization due to leading a company tends to be self-purposeful while managing authorities are having the possibility and ability to make the toughest decisions that need to be made for the club. It is very flexible organizational structure. That is why FC Barcelona works so well and why people enjoy working there. In the club their main language is Spanish and Catalan. For all the foreigners that work in the company the main language is English, and all the employees are obligated to speak English. Most importantly people are due to statistics very happy to work there, and employees have remarkable behaviour. VALUES Respect, effort, ambition, teamwork and humility are the five principal values that define the spirit of FC Barcelona8 Respect for others is one of the fundamental reasons for democratic life and the ability to live in society. It affects individual and collective dimensions. Respect is a fundamental sporting event, a possibility of sporting tension that is achievable by the unexpected. FC Barcelona keeps respect on a very high level. Ambition for Barca is to achieve the maximum performance in the game. And ofcourse – TEAMWORK. There´s no place, club, organization or company that would work without teamwork. And Barca is exceptional in this. 8 https://www.fcbarcelona.com/en/club/identity?fbclid=IwAR0XB8ZtKO--I8vadiISWWOAPmbrvVjZo_GoCOHqc4VUeDFXeaWqHAOW4-0 8. STAKEHOLDERS Fc Barcelona is a team that belongs to members not to any business group or one person. Team is registered as an association. There are approximately 155,000 members who each pay up to €140 annually for the privilege to be the member. The member governs the club by electing a president of the board of directors every four years. The current elected president of FC Barcelona is Joan Laporta. Randomly selected members are appointed to serve as delegates to the general assembly, which approves the annual budget. The club president cannot invest his own money into the club and the club can only spend what it earns, which is mainly derived through merchandise sales, television rights and ticket sales. Unlike a Limited company it is not possible to purchase shares in the club, but only membership. The advantage to be the Barcelona members include: • up to 20% discount on tickets for most matches • 5-10% off merchendise from FC Botiga, the club's store • free stadium and museum tours • free access to open training sessions held at the Mini-Estadi and others. In power/interest matrix stakeholders have low power with high level of interest.9 9. Conclusion Fc Barcelona has been a great club, well established and loved by the team, fans, coaches and players. Team has a lot of well know players that gives the team recognition and helps build the brand name. Because the clus is so big, management is a bit struggling with handling it all, aso financially the team is not doing the best. The return on investment is very poor. But this club is trying to do the best to please everyone - the stakeholders, fans, players, employees, while trying to implement more green, social and sustainable solutions. 10. BIBLIOGRAPHY 9https://www.quora.com/Who-owns-Real-Madrid-and-FC-Barcelona https://www.quiksilver.com/snow/ https://www.burton.com/blogs/the-burton-blog/ https://en.wikipedia.org/wiki/Burton_Snowboards https://zena.aktualne.cz/wiki/krasa/quiksilver/r~i:wiki:2960/ https://casesteam.com/ivey/fc-barcelona-mes-que-un-club/ https://www.fcbarcelona.com/en http://www.wikiwealth.com/five-forces:fc-barcelona https://www.fcbarcelona.com/en/club/organisation-and-strategic-plan/commissions-andbodies/strategic-plan-2015-21?fbclid=IwAR20VeLMI_aGGccAsULAOczN8j0ZvsTue5- foEiNzvRpOmrVWzf6hFv0ZeU# https://www.fcbarcelona.com/en/ https://www.fcbarcelona.cz/

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