Economics for a Sustainable World - Sports Hero: A Case Study

Running Head: ECONOMICS FOR A SUSTAINABLE WORLD
1
Economics for a sustainable world
Name
Affiliation
Date
Author note

Running Head: ECONOMICS FOR A SUSTAINABLE WORLD
2
Executive summary
Sports Hero is a real-time virtual sports application and social prediction
platform. Inside the application, users can make guesses on game, match,
and competition results. The users are ranked based on data provided by
other experts and fans in the community as well as statistics and real-time
news. The app currently offers cricket and soccer, with plans to add cycling
and extended keystone sports activities such as sports, basketball, American
football and AFL. Sports Hero is being provided as a mobile application for
Android and IOS devices. Sports Hero debuted as an offering by MtHero Pte
Ltd, a mobile app developer based in Singapore. The use replaced Football
Hero which boasted a user base of over 250,000 individuals. Subscribers to
the app before the launch of sports Hero were transferred to the application.

Running Head: ECONOMICS FOR A SUSTAINABLE WORLD
3
Table of Contents
Executive summary................................................................................................. 2
Introduction............................................................................................................. 4
Competitor analysis................................................................................................. 6
Factors of production.............................................................................................. 7
Information.............................................................................................................. 9
Macro environment analysis.................................................................................. 11
Competitive landscape.......................................................................................... 12
Sustainability practice of the business..................................................................13
Externalities from use of service...........................................................................14
Conclusion............................................................................................................. 16

ECONOMICS FOR A SUSTAINABLE WORLD 4
Introduction
Sports Hero is based on the same design as Trade Hero, a social
investment network established in 2013. Trade hero was a currency trading
simulation application that allowed stock-watchers to spend and earn virtual
currency through the acquisition and sale of stock on exchanges in different
parts of the world. In 2016, Sports Hero was given 2.4 million dollars in
funding, led by Nevada Iron Ltd, a company based in Australia, later that
year, Nevada Iron signed an agreement with sports hero Pty to acquire
sports Hero (Bryant, 2016) (DealStreetAsia, 2016). In 2017, sports Hero
started a campaign to improve user experience and brand identity. The app
was upgraded to offer a free to play model for users across essential markets
while providing a pay to play model as well (E27news, 2016). The app is
primarily targeted at male subscribers who have an interest in professional
sports and sports betting. The sports hero app is available for download in
195 countries around the world, and is offered in three languages; English,
Bahasa Indonesia, and Mandarin. Towards the end of 2017, Sportster was
rated as one of the best iPhone applications of 2017. Sportster entered into a
partnership with Minute Media's 90Min over a three-year term in October of
2017 (Finance.nine, 2018). As part of the deal, 90Min delivers original soccer
content developed by the 90Min editing team, football influencers, and fan
contributors (Thompson & Divine, 2016).

ECONOMICS FOR A SUSTAINABLE WORLD 5
In 2018, sports hero announced an agreement with two Indonesian
partners, Walleketku and Mr. Tri Putra. Mr. Putra Permadi, an Indonesian
social network, IT and telecommunications entrepreneur is sports Hero’s
official football partner in Indonesia. Wallets are the company's tech-partner
offering a digital payment system and various digital products. This includes
prepaid mobile phone credit. Walletku's payment system combines
seamlessly with sports Hero’s Indonesian app to enable the sale of sports
hero tickets to Walletku's users interested in participating in Sports Hero’s
local competitions in Indonesia (kalkine.com, 2018).

ECONOMICS FOR A SUSTAINABLE WORLD 6
The illustration above shows that Sports Hero performed below
expectations (-26%) within its industry (entertainment) which returned 2.7
percent over the course of 2018. the company also registered negative
performance against the Australian market which offered returns of 26% in
2018.
Figure 1: source- simplywall.st