Case Study Analysis for Juventus FC: Identifying Challenges and Solutions

The report analyses the challenges faced by Juventus FC and recommends solutions to maintain its success and growth. The study has identified that Juventus FC needs to focus on digital transformation and innovation to stay relevant in the market. The analysis has used Porter's Five Forces and Value Chain Analysis models to identify the club's strengths and weaknesses and opportunities for growth.

CASE STUDY ANALYSIS

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Description of situation................................................................................................................4
Problem statement and plan of analysis.......................................................................................5
Analysis and findings...................................................................................................................7
Recommendations or solutions to issues- ...................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

Executive summary
The aim of the report was to identify the problem in case study that is related to the
famous football club Juventus that has earned lot of rewards and goals. Also, the study had
identified three basic problems such as increasing operating costs, impact of pandemic on the
revenues and share prices of the club and the growing digital technology for enhancing fans
experience over the period. Moreover, the report has also analysed the situation of the case
along with using various models, concept and theories that would allow the firm to handle the
hard times in more effective manner. Furthermore, the study had also assessed the current
position that is faced by the company through applying various concepts and theories for
understanding of the situation in detail. Also, the study had identified alternative solutions for the
case study and also recommanded on that would be best fit according to the situation. Lastly,
action plan and the limitation and scope of the study will also be discussed in detail under this
report.

INTRODUCTION
With the changing era and upcoming of the new digital technologies it is essential for
companies to innovate to stay relevant in the market for long run. Further, the present report is
based on the Juventus FC that is football club having strong team players as part of the team.
Also, during overall period this football club has won various football championships. Moreover,
it was the fist Italian club that has won 9 Scudetto titles and 4 Coppa Italia in a row (Ruihley and
Li, 2020). Furthermore, Angelli is the current new president of the club after resignation of the
Jean Calude Blanc in May 2010. Moreover, the company sales as mainly due to the commercial,
ticket and income sales from the players' registration rights.
Aim : To give possible solutions to this team so that it keep on moving forward over the years
especially after the pandemic.
Objectives:
 To identify the current problems faced by the Juventus football club
 To maintain the brand image of the football club among the fans
 To examine the possible solutions to overcome the current challenges
Moreover, the report will give detail explanation of the situation that Juventus football club is
facing so that corrective measures and plan will be suggested for the future implementation of
various strategies and actions. Also, possible techniques and models will be used for analysing
the case study through support of relevant literature. Furthermore, detailed assessment of current
position of the company will also be discussed through applying various techniques and models.
Moreover, the study will also provide alternative solutions that might be applied by this club to
overcome the current problems that is faced by the company. Also, the study will suggest the
best fit option from the study along with providing certain recommendation for the future success
and growth. Lastly, limitation of this case study and the scope for the further research will also
cover under this report in detail.
MAIN BODY
Description of situation
Juventus company is a football club that is formed by the students of high school in 1897
in Italy. The team of this company plays football matches internationally and won various
matches. This company has been awarded as a star symbol as it has won 10 national titles by
playing with the other teams. When the pandemic hits it has negatively impacted on the profits of

the company. The situation arises that no football matches has been held it's the first time
Juventus faced this situation. In addition to that all the football competitions that are going to
held are also cancelled. The profits firm earns from selling the tickets has also not been made and
company faces financial losses due to this.
Moreover, the broadcasting of football matches also not been made resulting financial
loss to the company. 90% of the losses faced by Juventus and overall economy faces 20 to 30%
losses but it has major impact on the big clubs. Further, company had closed shops which
decreased the profits of the company and firm had provided refunds to whom the tickets had
been sold. Company's overall growth in terms of revenue has also declined as no football
matches held for 2 years.
Further, it has been analysed that this pandemic has not impacted on the interest of the
football players. So company has focused on digitization of their team so that with the help of
this company can engage with the members who play football. Juventus company to get over
from this situation has analysed that digitization is very important to increase profits. Company
has faced a problem initially to operate it's business digitally and faces problem in transforming
the business into digital.
Problem statement and plan of analysis
From the above case study there are various problems of challenges that have been
identified for Juventus FC that are briefly described as follows:
 Operating costs : With new rebranding of the football club more revenues are generated
for the firm but even though major problem was that operating cost of this club went very
high that resulted in decrease in the overall income. Moreover, this was due to the fact
that there was substantial growth in wages of the football team players. Although, such
type of expenses were covered through departure fees but it impacted heavily on the club
profits.
 Impact of pandemic: Also, from the given case study it was seen that pandemic was
another reason or challenge that Juventus FC had to face badly. Furthermore, with the
rise of the covid all the matches were suspended as gatherings were prohibited and people
were not allowed to go in public areas. Thus, due to this reason this club has to face
negative consequences in terms for decreased revenues and share prices in the market.

Also, the stock prices had also been fallen down to the great extent creating more
difficulties for the club. Digital technology: This particular club was struggling to enhance fans experience as
now it has challenge to find ways in which social media might be effectively used. Also,
major problem was to create the digital ecosystem that would allow the fans to find easily
whatever he wants through artificial intelligence that understands according to the current
needs of the users. Thus, the major problem to find ways that would enhance provide
more seamless experience to the fans while using any kind of social media so that they
are bale to remain associated with the club for longer time period.
Proposed plan of analysis and resources for analysing the case study
From overall case study of Juventus FC it has been analysed that wages of the football
members might not be reduced due to the fact that the club has hire most of the popular and
known football players in the world for maintaining the brand image and efficiency of the club.
Moreover according to Ráthonyi, Müller and Rathonyi-Odor (2018) cost concept in accounting
every firm has to incur fixed and variable cost in the business. Also, fixed cost remain constant
and cannot be changed easily over the period while variable costs keeps on changing from time
to time. Hence, according to this concept Juventus FC need to find what are relevant and
irrelevant expense the company is incurring so that certain actions than might be than taken
accordingly by the company. Also, Pandey and Pal, (2020) stated that there are various type of
operating costs that are incurred by the firm such as bank charges, travel expense, entertainment
costs, sales and marketings costs and much more. Thus, if there is continuously monitor over
these activities than working of any firm might be improved to greater extent in form of higher
revenues or returns. Furthermore, Perreault and Bell, (2020) stated that marginal costing
technique is also very efficient for establishing the cost control within any firm and is better
method of profit panning. However, Yoga, Korry and Yulianti (2019) argued that using this
method there are greater problems in classifying the costs into fixed or variable. Also, the time
element is ignored as in the long run all the costs are variable in all levels of operations.
Moreover, for better utilization of digital technologies it is important that company
analyse all the process and systems that are used in increasing the performance of the business.
Furthermore, Najm and et.al., (2021)examined that freemium digital model is the best business
model that might be used by any firm where the users are allowed to have free access to basic

version for limited time period and later when additional features have to be used than user have
the option to upgrade into premium paid version. However, Ivanov, Dolgui and Sokolov, (2019)
criticize that this model might reduce the cash reserves of the company as there are higher
chances of non-paying consumers. Also, this in turn would only reduce the overall cash without
the assurance that more number of paid users will be added in over the period. Moreover, in time
like pandemic there was situation that every business was largely suffered because the resources
were limited and expense were very higher. Also, due to this fact many companies have not been
able to develop better expansion policies for the business over this period.
Furthermore, it can be said that Juventus FC might also use the E commerce model in
the business after pandemic so that the brand value might be increased also the firm is able to
overcome certain challenges that it is currently facing. Moreover, Hammerschmidt and et.al.,
(2021) stated that this model is popular in the current times when there is high use of social
media among people and also there is faster buying process as there is much flexibility provided
to the customers. However, Kroon and Eriksson, (2019) argued that this model creates problems
to the business as there is lack of reliability and security because of the poor implementation.
Thus it can be said that through there is intense competition in the market and football
club are introducing ways to stay relevant among the fans for longer time period. Also, it is
important that customers needs and wants are closely identified by Andrea Agnelli so that new
products, gaming, videos are provided on timely manner sop that club is able to diversify and
increase the revenue so that maximum opportunities might be created after the post pandemic.
Moreover, digital transformation is need of this generation and hence even initially the operating
costs are increased it doesn't matter in the long run if the club have strong marketing and digital
strategies to compete with other clubs (Hagen and Cunha, 2019). Also, online streaming with
one of the favourite players, keeping price money for participating ion online football games,
selling good shirts are some ways through which the Juventus FC might increase the fan base
and through bringing new transformation in the current era. Moreover, setting the monitoring
measures is also required by the club so that costs does not exceed and the resources are not
wasted unnecessary especially during the times like pandemic.
Analysis and findings.
Though Juventus FC need not take much improvement steps for future growth and
success but although to improve the current position and status of the club and to gain more

competitive advantage it needs to analyse current situation it is facing that might be explained
through using various models and theories. One that would be best suited in the current problem
is porter five forces model that helps in analysing the company strengths and weakness so that
better corporate strategy might be developed. Also, this model consists of various elements such
as power of buyers and suppliers, competition in the industry, threats of substitutes and new
entrants within industry (Ghio, Ruberti and Verona, 2019). Thus, through analysing all these
elements Juventus would be able to develop better policies for maintaining ongoing success of
the club and identify new areas where the fan base might be increased and people are ready to
know each detail relating to the club at every point of time.
Furthermore, this model is very good especially in those times when the power of the
business need to be identified so that better measures are taken. Moreover, this model will help
the club in identifying future opportunities that might be available to the club when certain
decisions are taken in the right manner (How Porter's Five Forces Can Help Small Businesses
Analyze the Competition, 2022). Also, this model would be perfect for the current situation of the
club where it would be able to identify the pinpoint areas where the strategy might be adjusted so
that more profitability might be increased. Furthermore, through this model Juventus would not
only save costs but also time in making different policies as the competition would be already
estimated.
Moreover, another model that would be useful in this type of situation for the club would
be value chain analysis model that is designed to identify each opportunity that are available to
the club so that certain improvements might be made on time. Also, this model identifies what
are primary activities that are essential to be carried out by the club for increasing the revenues
and rest other are classified are secondary activities that the club might focus less than the
primary and are also known as support activities (Beiderbeck and et.al., 2021). Furthermore, the
club might conduct this analysis through identifying the activities within the club, determining
the cost and value of activities and lastly identifying suitable opportunities for gaining
competitive advantages. However, if the club through this model finds out that there is problem
in the operation of the activities than it might improve the value chain through adopting two
competitive strategies such as either being low cost provider or having specializations that would
help in targeting the fan group more closely and effectively in increasing the profits for the
business.

Also, this analysis is the ability of breakdown of activities into various smaller groups so
that better future products and services might be offered. Thus, this analysis would help in
increasing the profitability of the club and eliminate all types of waste that is currently incurred
by the club. However, relying on this analysis totally by the club would only result in losing the
broad strategic view by only noticing the micro details. Although this model according to current
situation is good as it would allow Juventus FC to bring greater value in the end to the customer
by getting into deeper insights of the situation.
Furthermore, the last model that might be used by the firm is blue ocean strategy where
Juventus FC would know where competition of any particular product is not present or very less
so that the club might expand into that business so that no pricing pressure is there and more
revenues might be generated easily (Alam and Abdurraheem, 2021). Moreover, this only
possible when Juventus does proper marketing research so that that better rewards are earned in
the future through systematic efforts. Thus, this model would allow the club to beat the existing
competition and exploit the demand in the target market. Also, it would allow the club to set
various process especially on the e-commerce platform without having any kind of competitive
constraints, Moreover, in times of limited growth for Juventus FC after post pandemic this would
be great option for the club to identify new business lines so that fans might have the best
experience to remain attach to the club and its members and would always remain curious in
knowing the top achievements and rewards that are earned by the club over the period.
Thus, above are some models that might solve current problems of Juventus FC that had
undergone so many changes like rebranding and digital transformation to remain competitive in
the markets against some top football clubs. Also, these models and theories would increase the
efficiency and effectiveness of the club in form of support and guidance so that working
becomes much easier and there is clarity in the next gaols that need to be achieved in the future. .
Recommendations or solutions to issues-
 It is recommending to company to use cost leadership strategies as the operating cost is
high in the organisation so firm must reduce the overall cost. In this strategy Juventus
must reduces the prices of the product so that sale of the products increases. Cost strategy
is used by the management to set the price of the product very low as compare to
competitors. This strategy used by the company so that customers buys their product.
Further, this strategy will improve the market share of the company as customers are

attracted when they get the products at low cost (Yusuf, Rasyid and Rura, 2020).
Company must reduces the price of not just one product but others products also so to
increase the overall sale of the product.
 It is recommended to enterprise to implement technology as the overall revenue of the
company reduces when the pandemic hits so it must implement technology in their
organization. Juventus must adopt digital technology to engage with the fans. Further,
firm should create the awareness of the technology between the customers and fans with
the marketing strategies. Moreover, digital transformation will help the organization to
increase the profits of the company. This strategy will help the firm to attract the fans
from all over the world. In addition to that it will increase the audience share across globe
which will further increase the revenue of the company. Revenue of the company that
decreases due to Covid will change by transformation of firm in digitization it increases
the overall growth and profits of the company.
 It is advisable to company to increase the technology awareness among the shareholders
as the share prices of the organization reduces. Management must communicates to the
shareholders that they are entering into digitization of their business. In addition to that
impact of digital transformation on the profits of the company and how it will generate
the revenue in the business. With these shareholders invests in the company so that they
will get return on investment and dividends on the amount invested (Eker and Eker,
2019). Moreover, other investors who want to invest in a company they will invest their
amount when they know about the company is digitizing its business. It will increase the
share price of the company.
 It is advisable to firm to use integrated strategy to improve the performance of the
company. In this strategy company must reduce the prices of the products and makes the
products by considering different quality levels. Firm should produce the products of
medium level of quality it will help to attract customers who are looking of quality
products with a low price (Suoniemi and et.al., 2020). This strategy will increases the
customers who are looking for high quality products but the products having a low price.
It will increase the profits of the company as many customer looks for mid level quality
products. This strategy will increase the sales as well as profits in the company.

 It is recommended to enterprise to use differentiation strategy to improve the profitability
of the business. In this company must produce the products by considering the quality
levels and produce the products differentially. With this strategy firm will attract the
consumers who are looking for the quality products than the price. Juventus company sets
the standards for the products that are manufacturing in a business. They will
manufacture the product by considering the different levels of quality (Rajesh, 2021). It
will further increase the customers who want to buy different quality in the products. The
quality standards that are set by the company must be more than the competitors so that
all consumers shift towards the Juventus products.
CONCLUSION
From the above report it can be concluded that Juventus FC had been successful over the
years but due to the pandemic it has faced certain problem that might be solved through various
analysis. Also, the study had identified current problems and solutions through applying various
models and theories. Moreover, the assessment of the problems is also provided along with list
of recommendations that would help the club to remain competitive and grow over the years.

REFERENCES
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Online:
How Porter's Five Forces Can Help Small Businesses Analyze the Competition. 2022. [Online].
Available through:<https://www.businessnewsdaily.com/5446-porters-five-forces.html>.