Ufc Case Study

Topics: Ultimate Fighting Championship, Mixed martial arts, Pride Fighting Championships Pages: 7 (2576 words) Published: November 5, 2012
* UFC brand name that is essentially synonymous with MMA. * UFC has market domination right now and are ahead of all of their rivals. * Dana White’s big personality causing a lot of attention and is attractive to many fans. * They are very strong in social media and continue to benefit from the marketing used on Spike TV * Joe Rogan, a fan favorite and very knowledgeable. This means he is extremely valuable to the company. Weaknesses

* Compensation of athletes
* Struggles to gain international popularity
* Dana White’s overly-aggressive attitude
* Sponsorship fees that turn away many sponsorship opportunities and hold back smaller fighters from getting sponsorships. * Extremely violent sport, which deters a large part of the population. Opportunities

* Emerging markets such as China, Japan, EAU, Mexico, and the United Kingdom. * Diversifying their revenue with other ventures including video games * Joining with other ventures and fighting leagues in order to diversify their fighters, thus gaining interest from fans of other fight styles. * Emerging interest in other countries could be utilized by recruiting and developing talent from international markets, such as the case with Michael Bisping in the United Kingdom. * Expansion into the television market even more, with their partnership with Spike TV. Threats

* Rising completion, mainly the DREAM organization
* The possibility of overall interest going away, seeing as how UFC’s success was dictated on its ability to thrive off of hype. * Fighters leaving the UFC over disputes about compensation or sponsorships * Inability to get and retain sponsorships because of their sponsorship fees. * Other competing organizations gaining market dominance in the international market The UFC is the largest mixed martial arts promotional company in the world and hosts the most top ranked fighters in the world. Mixed martial arts (MMA) is a form of fighting that incorporates elements from boxing, judo, Brazilian Jui Jitsu, karate, kickboxing, and wrestling. It was developed in the early 1990s and had the tagline “There Are No Rules!” It had early success but ran into an immediate problem because the lack of rules in the sport had caused it to be banned in 36 states. They were then dropped from Viewer’s choice, a top PPV cable distributor, and other cable carriers. They began to alter their rules to attempt to gain for popularity and acceptance. In 2001, Frank and Lorenzo Feritta, along with Dana White, bought the UFC and created a parent entity called Zuffla LLC. Lorenzo Feritta was able to secure sanctioning in the state of Nevada in 2001, allowed the UFC to return to PPVs, thus generating higher interests. They began to grow stronger and stronger as a company, booking for PPVS and eventually getting spots on television, beginning with The Best Damn Sports Show. They were seeing tremendous success in views from PPVs and were gaining a lot of popularity, but they were still struggling financially, and reportedly had lost 34 million dollars within the first 3 years of purchasing the UFC.

In order to avoid bankruptcy and find higher revenues, Zuffa expanded UFC into television by creating the show The Ultimate Fighter. Spike TV was the eventual partner in this deal because Zuffa offered to pay the 10 million dollars that it needed for production. The show was an instant hit and became a major component in gaining popularity. UFC’s partnership with Spike TV became very useful because it allowed the UFC to use the television exposure to promote fights, thus cutting down on advertising expenses. This was one of, if the not the biggest, reason for UFC’s explosion of popularity. Pay Per Views became more popular than ever before and created incredible income for the UFC including $222,766,000 in 2006. Having the show on cable television made it incredibly easy and cheap to target their audience and to promote...
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