Ufc Porters 5 Forces

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Ufc Porters 5 Forces

Laura Cox

03/07/2012

MGT Strategy

Case Analysis: The Ultimate Fighting Championship and Cultural Viability

I. Introduction

The UFC, Ultimate Fighting Championship, belongs to the mixed martial arts industry. It is actually the largest MMA promotion company in the world. Mixed Martial Arts is a full contact combat sport. It allows the use of both striking and grappling techniques. There are numerous types of mixed martial arts including boxing, wrestling, kickboxing, karate, and taekwondo.

II. General Environmental Analysis

a. Technology

Mixed martial arts have been around for a long time. It was first introduced in the original Olympic Games in Athens. In the beginning, fighters used a combination of Hellenic boxing a wrestling to fight. They could use any of their abilities until they had the other opponent knocked unconscious or surrender. There were no rules or guidelines to the fighting; it was all or nothing. Different combat sports evolved over the years into different areas of the world. This made the popularity of pakration decline. As time went on, rules and regulations were developed for the fighters and the technological advances helped this sport take off.

b. Demographics

This industry is mainly viewed by males, although some females are also interested in the industry. From personal experience, males enjoy watching a fight more than females do. The industry attracts an age group mainly between 18 and 36. No matter what race or ethnicity we are, fighting is in our DNA. This is not intended as a racial sport against another race or kind.

Many young children and adults are taking classes in this type of industry to have a better understanding of personal protection. I will admit, I don’t think some of the fighting is kid friendly. It takes a mature individual to understand that trained fighting is not there to intentionally hurt someone. I believe as long as children are being taught the correct way to fight and the reasoning behind it, for personal protection, they are entitled to participate in the sport.

c. Political/Legal

One of the first priorities was to legalize MMA as a sport. States needed to regulate the MMA in order to legalize the sport and reach a wide variety of audiences. Similar to boxing, MMA needed regulations from the government and specific rules that all fighters followed. A department was created that was devoted to regulatory issues. Most of the rules formed from the rules of boxing, like weight class limit and timing in the octagon.

“Die to these regulations, a five-year study of injury trends in sanctioned MMA fights found that there were no critical injuries to any of the fighters involved in the study, and that the most common injuries were lacerations and upper extremity injuries.”

d. Socio-cultural & Global

MMA sports were developed all over the world. Greece, Korea, Japan and Russia are only a few places that combat sports originated. Now there is a wide spread all over the world with these violent combat sports; every culture has their own form and concepts that create the MMA industry. I would believe that the combat sports attract more men than women. Since it is such a violent sport, some cultures may now even allow the sport in their country.

III. Industrial Analysis

e. Barriers to Entry (High)

The MMA industry is growing quickly. There is a great amount of profit potential so why aren’t other companies entering the industry? For one, brand name is very important in this industry. A new company cannot just come in under any name. Fans are going to be more interested in the name brands that are already established. Trying to establish a brand name, will be a challenge for new entrants. Establishing relationships with state commissions and various venue places is also important in this industry and it is not an easy thing to duplicate. The well established companies are going to...
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