Case study – STREET LEAGUE SKATEBOARDING: THE CHALLENGES FACI

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Hi, You will find some comments about Q1 that will help you to answer the question also you find a file PDF the comments from the file.

Question 1: as Dyrdek and Atlas, would you have partnered with Global X at the end of 2012? Identify the major pros and cons of the partnership, and explain why you would (or would not) have partnered with Global X. (500 WORDS)

COMMENTS 1: I wouldn’t partner with Global X because the cons outweigh the pros. Although customer base and brand would be promoted, limitations on operations and media ownership are likely to affect the revenue significantly. The concern about Street League being a sub-brand of X Games is also significant to ignore.

COMMENTS 2: In my opinion, it was not a good decision to partner with Global X at the end of 2012. There was clearly a power imbalance between SLS, Global X and ESPN. SLS compromised in the partnership. Whilst there were some positives to SLS to partner with Global X, ultimately SLS succumbed to pressures placed on them as a smaller developing business especially the pressure to secure TV rights. Partnering with Global X meant that SLS were able to take further steps towards their mission of “spreading street skateboarding across the world” (page 11). The partnership provided a global platform and opportunities for SLS to promote their brand to a wider audience and increase their fan base. Additionally, SLS were in a position to achieve this with limited financial input, which allowed them to expand in a way that would otherwise have been limited. The opportunity to partner may additionally have provided greater exposure that may have been attractive to future sponsors of the SLS. There were however many cons with the Global X and SLS partnership. One of the key values for the SLS was to own their own content and ensure they had an ability to generate exciting content for their fans. In this partnership SLS would not own its media content which created limitations to explore and capitalise upon the content they wanted for both digital and TV opportunities current and in the future. The partnership created significant risks of SLS becoming a sub-brand of the X-Games, which was in alignment with the SLS vision. There was significant risk that whilst fan base would grow, the fans would associate street skateboarding with the X Games, diminishing the SLS brand. A key value for the SLS was to ensure that the environment was optimal for the top athletes competing. Partnering with Global X bought risks in regards to the operations of the SLS, through the expansion of events offered and the events combined meaning an increased likelihood of a sub optimal competitive environment for skateboarders in the Global X events. Significantly the partnership with Global X also created concerns about existing sponsors, and the SLS ability to deliver what was promoised to sponsors. It placed SLS at a significant risk of losing existing sponsors, impacting their non X Games events.

COMMENTS 3:
Pros:
– Global reach / expanding their brand and fan base
– Raise the profile of street skating around the world
– Launching platform that would not cost money
Cons:
– Operational impacts – how would they manage so many events across so many locations
– Concerns around being a sub-brand to X-Games – would fans associate with X-games or SLS?
– SLS did not own content – limit their ability to develop and broadcast content across different platforms

There are 3 necessary comments that are written from them because it is a discussion of the assignment group and also through the PDF file.
Thank you so much, less

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