AMBA650-The Springfield Nor'easters Case Analysis.
The city of Springfield, Massachusetts were blessed with the basing of a baseball minor league franchise in their city. But the class A team is faced with great revenue generation challenges that will make or mar the organization. The new team might likely take advantage of the fact that closest sports franchised teams are all located 90 miles away from Springfield. This might create a ticket and concession boom for the team and other benefits like employment and taxes for the city. The city has a considerable moderate family income and a recent growth index in the healthcare, financial, and other small and medium enterprise sectors is an advantage …show more content…
The minor league teams have to offset their other operating costs. In the event of failure to break-even and generate funds to pay for their other expenditures, the team would have to relocate to another city with better market opportunities. Concession sales would generate funds that will help offset the estimated $1.96million operating budget, while the main partner- The Major League will contribute funds, the ticket sales is the key revenue generating source for the team. How to sell these tickets is the major problem for the team. A loyal fan base makes successful minor league baseball team(Cespedes, Winig, and Lovelock, 2009).
2. Analysis and evaluation.
The SWOT Analysis:
The city has two market segments for the sports ticketing business- namely-Loyal sports lovers that are willing to drive 90 miles to city of Boston to watch games and the second segment includes: Families, College Students, Little Leagues, and other sports lovers that do not commit absolute loyalty to any team but would love to watch games in their home city. Research shows that the market buyer behavior shows that game watchers need to be entertained in every games, thereby making the sports as an entertainment source. The act of the game providing a source of entertainment will surely draw fans repeatedly to the stadium for many season games if not all.
Many families with minors