Analysis of the Impact of COVID-19 on Juventus FC and Proposed Solutions
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This case study analysis examines the impact of COVID-19 on Juventus FC, including the challenges faced by the workers and proposed solutions to overcome the crisis. The report includes a literature review, Ansoff matrix evaluation, and growth strategies for the club.
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Contents Chapter 1- Introduction to the case study........................................................................................4 Statement of the problem.............................................................................................................4 Research aims and objectives......................................................................................................4 Structure of the rest of the report.................................................................................................4 Chapter 2- Case Brief: Description of case study............................................................................4 Chapter-3: Problem statement, plan of analysis..............................................................................5 Literature review..........................................................................................................................5 Chapter 4: Analysis and Findings....................................................................................................8 Chapter 5: Proposed solution to problem........................................................................................9 CONCLUSION..............................................................................................................................10 REFERENCES..............................................................................................................................12
Chapter 1- Introduction to the case study Statement of the problem The consequences of COVID – 19 pandemic have led to a considerable term of crisis for footballwithmatchesthatsuspendedorcanceledandfundamentalseventslikeUEFA Champions League also got postponed. For more than a year, the turnover of European and Italy club have been effectively affected by the absence of fans and supporters in stadium. During the decade the pandemic issue of COVID – 19, football industry had faced effective disparities among the clubsthat have also worsened at the time of ongoing outbreak of the COVID – 19 pandemic.Sponsorshipandcommercialrevenueisafundamentalsourceofincomefor competition organizers, clubs and as well as national teams. Research aims and objectives Proposed Title – Strength and opportunities used by the firm to overcome the impact of COVID – 19. Research aim “To determine Strength and opportunities used by workers to overcome the impact of COVID – 19”.A case studyon JUVENTUS FC. Research Objectives To examine the impact of COVID - 19 on business To determine various Strength and opportunities used by the workers of JUVENTUS FC To measure the issues faced by the workers of JUVENTUS FC while using effective Strength and opportunities Structure of the rest of the report The following report covers the scenario of the statement of the issues with effective Research aims and objectives of the analysis, suitable term of the approaches for analysis with Integrated assessment of the analysis - generate ideas or alternative solutions to the problems and issuesand as well as findings. At last it cover recommendations and as well as financial reports. Chapter 2- Case Brief: Description of case study This case is related with Juventus Football Club which was going in excellent way before covid pandemic in 2020. Football in Italy is concerned with tradition and relates to people's
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sentiments. Union of European Football Association (UEFA) is considered as an prestigious tournament in Europe. Andrea Agnelli is hired as an president of club in 2010 which make improvements in many sectors and have diversified income streams of club. Its major source of income is television broadcasting where it earned well due to its fan base, rich history and excellent performance of its players. Owners of Juventus Club has collaborated with Adidas and Palace in order to launch their football clothing line. Gradually with the helps of its operations and performance it become the global name and move ahead from their competing clubs(Ajmal and Et. Al., 2021). They have also developed their eco-friendly sports erena and training centre for their team. Digital transformation of club involves promotion through digital means and selling of online tickets has helped them to gain large fan base(Alonso and Et. Al.,2021). A new coach was hired, named Andrea Pirlo has motivated and supported the team in such a way that it defeated iconic Spanish team in UEFA competition. After this success, owner of Juventus Football Club, namely Andrea Agnelli has made substantial investments for strengthening the team such as acquisition of Cristinalo Ronaldo and adopting digital engagement. Cristinalo Ronaldo is an excellent and well-known player who has bring his fan base to club. However, it is not easy for club owners to operate in an efficient manner after breakdown of covid pandemic. It was found that with increasingly growing revenues, its operating cost also got raised due to substantial raise in pay of their team. This has impacted on their revenue in a very negative manner. Owners were only get revenue from broadcasting that also have in decreased amount. Revenue generated from selling of tickets are completely wiped out due to global lockdown(Amankwah-Amoah, Khan and Osabutey 2021). But fever of football is never decreased from the minds of people even at covid pandemic. At that time virtual team football matches organised by Juventus Club helps to entertain fans. They are trying to move forward after covid pandemic as it has decreased its revenues. Team has excelled their performance in this period as doing excellent job. Chapter-3: Problem statement, plan of analysis Literature review To examine the impact of COVID - 19 on business
According to the viewpoint ofFairlie, R. and Fossen, F.M., (2021) , the new term of COVID -19 have intensely affected football sector as effectively. It is most followed sport sector in the world in terms of financially and as well as socially. The clubs that have been effectively hit financially that will particularly concentrates on the digital economy to eliminate the issues. Challenges are high in the area that consider in the digital world at the similar ratio. As there are three factors that are essential for the clubs in the new phase in terms of loyal supporter outlook of attainment, adjusting themselves to the laws of financial sources, meeting the expectations of the new and digitized fan generation. The football sector should ascertain the most effective manner for itself and also evaluate negative issues of COVID – 19 and variation of dynamics sections of the industry. To determine various Strength and opportunities used by the workers of JUVENTUS FC According to the viewpoint ofSpiegel, M. and Tookes, H., (2021) , it covers strength and opportunities for football sector during COVID – 19 pandemic issues - Strength As there are several sort of the measured that were adapted in respect to decrease its effects of outbreak like efficient use of personal protective equipment (PPE) kit, physical distancing, travel restrictions, tests and tracking and so on. That covers the major strength for the football fans and supporters and as well as football clubs while managing their dealings. Another strength of Juventus Club is to have a excellent team performance and digital transformation of business operations. Weaknesses It is effectively have an impact by COVID – 19 pandemic issue as nations have imposed several limitations to stop the spread of the COVID – 19. The management cut ground workers to cover their lost revenue in which it will directly economical section when such newly football clubs no longer afford to deal and sponsor their tournaments and as well as matches. It also cover the scenario in which economists believe that can lead to global recession on the range of effective depression. Opportunities The maximisation in media consumption that caused by COVID – 19 that does not a line with outdated presenting mediums that structured their fundamental scheduling with innovative sections. It is generally raise the section of adapting D2C services to distribute football sections.
Such facilities are effectively attractive now because they have no set schedule and large libraries of content to hold individual occupied. Threats Tournaments cancellations and postponements also have impact on the football sector, ticket holders, broadcasters and so on. It covers legal duties that involves sports events, sponsorship dealings, and as well as pre paid ticket sales that will require to be presented and followed in terms of the failure happening of major events and insurance policies that will no doubt to be presented with low term of incurred sections of stakeholders. To measure the issues faced by the workers of JUVENTUS FC while using effective Strength and opportunities According to the viewpoint ofYeganeh, H., (2021) , the impact of COVID – 19 pandemic issue will majorly affect the managerial outlook, impermanent and effective result from stakeholders presented that the sports section that is resilient in the issues that had faced by the business and about the supporters involvement. It also covers the challenges that are raised and effectively being performed by it and it is effectively have an impact on the commercial dealings with wider term of the relations that are featured for furthermore criteria in an effective and efficient manner. It also have an adverse impact on the sponsors by having cancellation and as well as postponement of the events that refers to the manner for sponsors to decrease the brand awareness that they make agreement to terminate or maintain the scope their commercial scheduling with players, event organizers and presenters. At the time period of January 2020 and March 2020, the pandemic issue of COVID – 19 spread the imposition of such limitations to most of the nations of the world. The imposition of such limits will measures that had lock - down to control the spread of the pandemic in the world of the sports sector. Applying Ansoff matrix to evaluate and plan for growth strategies During corona pandemic, it becomes very difficult to mange their operations as global lockdown has hit the economy in an adverse manner. It is essential for owners of Juventus Club to analyse their operations and develop strategies tom grow as well as sustain depressed market situations. Market penetration This factor has stated that strategies should be developed in such a way that promotes existing products into existing market(Evenett,2020).This can be dine through extensive
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market research and efficient marketing strategies. This can be adopted by owners of Juventus Club by increasing promotions of their team. Product development It states that a new product should be offered in existing market. It can be performed by organisations when they have excellent research and development department as they have to develop new product(Marco-Lajara and Et. Al., 2021).This can be adopted by owners of Juventus Club as they have marvellous team, coach and their clothing line as their products. They can develop new income streams by collaborating with other broadcasting channels. Market Development This factor relates with developing new products in new market. This can be opt by organisations by owing new new technology into developing new products. This can be adopted by owners of Juventus Club as they have all the products and opportunities in order to cater needs of untapped market through their clothing line. Diversification This factor relates with diversifying operations for opening up new revenue streams. This can be opt by owners of Juventus Club by diversifying their operations by investing in some other business venture. This is one of the riskiest method to move into as it involves new products as well as new market. Chapter 4: Analysis and Findings Juventus Club is facing issue serious issue of declining revenues and decrease in income streams due to corona pandemic. As global lockdown has stopped teams to play matches and win varied series. Main revenue stream of selling their tickets has suffered a lot. This pandemic has also takes lives of large number of fans of club. Owners are facing problems in paying high amount of salaries to their players. As they have collaborated with excellent and well-known football player Cristinalo Ronaldo who takes high amount of fees. It becomes a difficult situation for clubowners to operate with such less revenues. They are only generating their revenues from television broadcasting. Form the above analysis of varied opportunities and strengths provided in chapter 3, it has been analysed that Juventus Club is a strong club which do not break down due to pandemic situation. Although it is facing some issues and these are not ever lasting. Strengths of Juventus Club are its performance of its team players and provocative thinking of its owner. Excellent
performance of team at grounds helps them in increasing their fan base. Their new coach has also has its effective role in motivating and inspiring their team members in excelling their performance.Proactive thinking of its president which helps in transforming their operations digitally. This digital transformation helps them to operate virtual matches which further aids them in engaging their fans with the club(Morikawa, 2021).Another strength of this club is to have collaborations with excellent and famous players who has their own separated fan base. This helps in generating more followers of the team which further aids in gaining more revenues through tickets. Digital transformation is an opportunity for Juventus Club as it has helps them to operate some of their operations and in position to pay salaries to their players(Peng and Et. Al., 2021). Club has presented its official website and mobile application in order to enhance their fans experience. They have also provide with videos of playing shorts of different team players. From those, fans can see videos of theirfavourite players as per their different perspectives. Another opportunity present with Juventus Club is is excellent team performance. As new coach has motivated and influence team members to excel their skills and perform better. This can help them to win other series and championship in coming years and increase their revenues. From the analysis plan, it has been concluded that in order to move on from pandemic situation, owners of Juventus Club can go for market development option. It is considered with entering new market with existing products. After covid pandemic, it is desirable for owners of Juventus Club to invest a substantial resources in promoting their team through vast digital technology. For this practice to be successful they can go for influencing more people in order to develop more fan base. This exercise can also mean into searching more income streams. They can go forcollaborating with more television channels in order to increase their broadcasting revenue. Option of market development has been adopted by owners of Juventus Club as they have their excellent products in terms of their team, coach and valuable operations. They have adopted digital transformation strategies which helps them to have valuable insights into probable fans in order to influence them. Chapter 5: Proposed solution to problem. As per the above, it has been determined thatDuring the decade the pandemic issue of COVID – 19, football industry had faced effective disparities among the clubsthat have also worsened at the time of ongoing outbreak of the COVID – 19 pandemic. Sponsorship and
commercial revenue is a fundamental source of income for competition organizers, clubs and as well as national teams. Moreover,Juventus Club is facing issue serious issue of declining revenues and decrease in income streams due to corona pandemic. As global lockdown has stopped teams to play matches and win varied series. Main revenue stream of selling their tickets has suffered a lot. This pandemic has also takes lives of large number of fans of club. Owners are facing problems in paying high amount of salaries to their players. So, some solution are provided to respective entity that are as follows: They have to adapt the D2C services to distribute football sections. Such facilities are effectively attractive now because they have no set schedule and large libraries of content to hold individual occupied. Additionally, they have to opt Digital transformation as an opportunity because it has helps them to operate some of their operations and in position to pay salaries to their players. Club has presented its official website and mobile application in order to enhance their fans experience. They have also provide with videos of playing shorts of different team players IthasbeenalsoproposedthattheownersofJuventusClubcangoformarket development option. It is considered with entering new market with existing products. After covid pandemic, it is desirable for owners of Juventus Club to invest a substantial resources in promoting their team through vast digital technology. This has been also proposed to respective firm that efficient use of personal protective equipment (PPE) kit, physical distancing, travel restrictions, tests and tracking and so on. All this would be helpful for the football fans and supporters and as well as football clubs while managing their dealings. Furthermore, it has been also proposed to them that they have to collaborates with excellent and famous players who has their own separated fan base. This helps in generating more followers of the team which further aids in gaining more revenues through tickets. CONCLUSION As per the above report, it has been concluded thatCOVID -19 have intensely affected football sector as effectively. It is most followed sport sector in the world in terms of financially and as well as socially. The clubs that have been effectively hit financially that will particularly
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concentrate on the digital economy to eliminate the issues. Additionally, It also have an adverse impact on the sponsors by having cancellation and as well as postponement of the events that refers to the manner for sponsors to decrease the brand awareness that they make agreement to terminate or maintain the scope their commercial scheduling with players, event organizers as well as presenters.
REFERENCES Books and Journals Ajmal, M. M. and Et. Al., 2021. Empirical examination of societal, financial and technology- related challenges amid COVID-19 in service supply chains: evidence from emerging market.The International Journal of Logistics Management. Alonso, A. D. and Et. Al.,2021. Facing and responding to the COVID-19 threat–an empirical examination of MSMEs.European Business Review. Amankwah-Amoah, J., Khan, Z. and Osabutey, E.L., 2021. COVID-19 and business renewal: Lessonsandinsightsfromtheglobalairlineindustry.InternationalBusiness Review.30(3). p.101802. Evenett, S. J., 2020. Sicken thy neighbour: The initial trade policy response to COVID‐19.The World Economy.43(4). pp.828-839. Fairlie, R. and Fossen, F. M., 2021. The early impacts of the COVID-19 pandemic on business sales.Small Business Economics, pp.1-12. Marco-Lajara, B. and Et. Al., 2021. Hotel strategies in times of COVID-19: a dynamic capabilities approach.Anatolia, pp.1-12. Morikawa,M.,2021.ProductivityoffirmsusingreliefpoliciesduringtheCOVID-19 crisis.Economics Letters,203, p.109869. Peng, M. W. and Et.Al., 2021. Conglomeration,(de) globalization, and COVID-19.Management and Organization Review.17(2). pp.394-400. Spiegel, M. and Tookes, H., 2021. Business restrictions and Covid-19 fatalities.The Review of Financial Studies,34(11), pp.5266-5308. Yeganeh,H.,2021.EmergingsocialandbusinesstrendsassociatedwiththeCovid-19 pandemic.Critical perspectives on international business.