External and Internal Environment Analysis of Richmond Football Club

On the other hand, the sustainability of the organization greatly rests on the shoulders of effective analysis by the relevant personnel. This is because success greatly depends on concrete awareness of the different forces and trends in the external environment that affect the business. Nonetheless one cannot turn a blind eye on the short term and long term impact of the different forces in relation to their impact on the market. Contents Executive summary 2 1. Introduction 3 2. Bargaining Power of Consumers 8 3. Intensity of Industry Rivalry 9 4. Internal Environment Analysis 9 4. Strategic Analysis 10 5. SWOT Analysis 10 5. On the grander scale, this allows us to understand the principles of the club and the challenges that they are encountering in the day to day operations. External Environment: The PESTEL Outline The macro-environment analysis is the initial stage of a concrete and focused strategic development of an organisation.

Long-term stability of an organization depends on two main things. First, is by being able to anticipate the likely future events and secondly being able to deal with realities as they emerge spontaneously in the daily operations. To actually understand the environment, it is important to maximize the importance of opportunities while minimizing threats. Richmond has done a great job of understanding their fans. They, therefore, do targeted offerings to their members whether it is the merchandise deals or the ticket offers. The management always tries to do things more efficiently. In the past financial year, the club made a turnover of at least sixty million dollars and will be profitable in the long run as anticipated by the management. In addition to that, they formed a subsidiary with Aligned Leisure which won the management rights of more than seven leisure centers in Cardinia Shire for the next nine years.

Technological Richmond fans and management are using technology to reach to their fans. Through the use of different interaction platforms, the club has been able to ensure that all their support base stays updated on the happenings in the club. Due to that, the fans have remained loyal to the club that has the largest membership in the whole of Victoria. Occasionally, through the company’s website, the club has announced free tickets to its most ardent fans. The club has consistently been ranked in the top three in the AFL for active engagement in the social media platforms and other digital platforms. In addition to that, there are many cases that the club is battling in court against former employees and the state.

These legal barriers may be in a greater sense affect the financial position of the organization in addition to time and effort dedicated to it (Parker, 2004). In conclusion, the macro-environment analysis revealed that the opportunities balanced in threats coupled with the ever-changing demands of the sports market and the rapidly changing global dynamics. In order to minimize threats, the going concern has to constantly adapt to the dynamics while looking for the most favorable ways of achieving maximum balance in the environment. Cooperation, collaboration, and mergers may also come calling in the near future. It is genetically transferred. It is therefore very difficult for a new club to gain entry into the business (Porter and Heppelmann, 2014). Threat of Substitutes Customers have a free mentality in that they have the ability to choose between many different substitutes in their quest to find the product that greatly satisfies their aspirations.

Richmond Fc does not have the power to determine the ticket prices because that would mean that other market players make a small contribution to the industry. Nonetheless, that is not the case for Richmond. Conversely, the club can have a bargaining power over the supplier due to dominance. The club can easily switch between suppliers hence control them to a large extent. Bargaining Power of Consumers The rationale for the primary consumers who are the ticket-buying supporters cannot hold the key for conventional marketing considerations because there are many non-commercial aspects that come into play. Consumers hold the key to the strategic success of an organization. Richmond FC depends on consumers to a large extent. Richmond FC is therefore faced with the challenge of looking for the most viable place of placing their sports ground in order to attract the consumers.

They have to choose between areas where the Australian Football League is strong or in areas where the support base is promising due to the small number of fan base. However, the management has effectively tackled the void by tapping into the rapidly growing northern population by building a new facility that was provided by the local government coupled with their property developers (Farkuhar, 2018). As observed by the nature of the organization’s competitiveness, it is congruent to assert that the industry is very attractive through the Porter’s Five forces model. Internal Environment Analysis The key strategic capabilities of Richmond Footy is that it has a large fan base coupled with a promising demographic setup that is very promising. Their financial support is the most important factor that the management has been able to tap into.

The management is committed to engaging with members and supporters across the entire business (AuLeisure, 2016). SWOT Analysis SWOT analysis is an instrument used by managers for assessing the strength, opportunities, weaknesses, and strengths of an organization. Richmond FC has a good reputation in Australia as shown by its long history and fan loyalty. Strengths and Opportunity The strength of the organization is built on the basic tenets of massive sponsorship, large fan base and perfect take from the gambling maniacs. OPPORTUNITIES Additionally, the club has an opportunity of increasing its revenue by over 36% from the sale of home ground tickets attendances. WEAKNESSES The club has a task of maintaining an emotional connection with their fans despite moving from their original ground to a different ground that is far away.

THREATS The Australian Football League is at the forefront of ensuring that they reduce the dependence on gambling for sponsorship 6 Management Challenges The management is faced with an uphill task of recruiting more competent human resource forces to cater to those skilled managers that have resigned in the past few months. In addition to that, they are faced with a task of ensuring they repeat the same feat they did by proving to their fans and members that they are a force to reckon with in the Australian football league which is becoming competitive as years progress. Additionally, teams are increasingly becoming tech savvy thus increasing the competition. id.  How Demography Helped Richmond Football Club Double its Membership. ONLINE] Available at: https://home.

id. com. au/news/richmond-football-clubs-off-field-success-built-on-the-industry-skills-of-k/. Accessed 8 August 2018]. Cardinia.  Environmental sustainability in Cardinia Shire. ONLINE] Available at: https://www. Madhok, A. and Montoro-Sánchez, Á. The evolution of strategic management research: Recent trends and current directions.  BRQ Business Research Quarterly, 17(2), pp. John Pierick. Mark Stirling.  AFL Revenue Which Clubs Bring in the Big Bucks. ONLINE] Available at: http://www. sportingnews. com/au/afl/news/afl-revenue-ladder-which-clubs-bring-in-the-big-bucks/jotzvtk43bfe11kw1sfqqvqcp. Accessed 8 August 2018]. Porter, M. E. and Heppelmann, J. E.