The Sport and Event Business Environment: A Report Analysis

This report provides an analysis of the sport and event business environment, focusing on the European music festival market. It begins with an introduction to the business environment and its impact on the sports and event industry. The main body analyzes the market structure of European music festivals, highlighting their economic contributions, growth, and competition. It also provides an overview of the global business environment, including factors such as inflation, exchange rates, and interest rates, and their effects on the industry. Economic diagrams, specifically the supply and demand model, are used to illustrate the determination of prices in the music festival market. The report concludes by summarizing the favorable business environment for the event industry and its potential for revenue generation and economic growth. References to books, journals and online resources used in the report are also provided.

The Sport and Event
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysis of market structure...................................................................................................3
Overview of global business environment.............................................................................4
Economic diagrams................................................................................................................5
CONCLUSION................................................................................................................................6
REFERECES...................................................................................................................................7

INTRODUCTION
Business environment includes all the internal and external environmental factor which
affects the ability of business in maintaining long term customer relationships which help it in
earning profits. The sports and event business environment refers to all the factors which affect
businesses working in the event and sports industry which needs to be analysed so that efficient
decisions can be made to reduce their negative impacts (Anderton, 2015). In this report market
structure, overview of global business environment and economic diagrams of European music
festivals related business will be discussed.
MAIN BODY
Analysis of market structure
Music festivals in UK attract roughly about 14 million people from all across the world
along with most popular artists who perform in these festivals. Galstonbury is one of the most
popular music festivals in UK which help in generating huge income in UK. European music
festivals play an important role in economic development in UK, generating job opportunities for
people, bringing people belonging to different communities and tastes together which is helpful
in building integrity and harmony etc.
Illustration 1: Festival market size in Europe
Source: Festival market size in Europe from 2016 to 2020

From the above graph it can be interpreted that the market size of European music
festivals is increasing with each year along with the increasing revenue which is generated
through these festivals. Thus the market structure of European music festivals in growing and
expanding. Also the scope of this industry is large which means that the number of music
festivals will increase in the coming years which is beneficial for all the businesses working in
this industry. Also as the number of businesses will increase the competition among them will
also increase which will be beneficial for customers as the prices of attending these festivals will
be favourable to their budget.
European music festivals can help in generating large income for Europe with over £1.27
billion generated in 2016. 44% of the tourists visiting UK say that European music festivals are
the best part of attraction with about 55,000 UK music concerts and festivals that are hosted
every year. The leading companies which are working in this sector are LN-Gaiety Holidays Ltd,
Festival Republic, MAMA Group etc. who organises many concerts in UK and help in
generating large revenue for the country (Anderton, 2018).
Overview of global business environment
With an increase in the spending pattern of people on leisure activities there has been a
growth in music festivals and thereby the businesses in this industry have also expanded
globally. European music festivals have been increasing with the increase in expenditure by
customers which help in attracting many businesses to this industry. In the global market the
business is affected by certain external factors such as: Inflation: Due to the increase in inflation rates in global market there has been an
increase in the rates of European music festival as the supplies that are to be arranged
during these events have become expensive. Also with the involvement of highly
advanced technology in these events the ticket prices have increased which can affect the
sales of businesses involved in this industry (Dilkes-Frayne, 2016). Exchange rates: With Brexit the UK currency will become weak in the global market
which will create a negative impact on the European festival events industry as the prices
of events will rise. This can affect the sales of businesses of this industry and can lead to
a downfall in the number of events.
 Interest rates: Interest rates also affect the businesses in European music events as if the
interest rates are low they can take easy loans from banks to conduct the events and vice

versa. This affects sales of these events as the price of their tickets fluctuates with
changing interest rates (Ragsdell and Clayton, 2016).
Economic diagrams
Economic diagrams are economic charts which represent macro-economical or business
economical processes. These charts consist of two components on the x and y axis which help in
depicting the relation between the two components.
Illustration 2: Supply and demand
Source: Supply and demand .2020
Supply and demand in economics defines the relationship between the availability of
products and services in market to the number of customers who wish to purchase them. This
model help in determination of prices of music festivals based on supply and demand of a
particular event in market. Equilibrium-price is the point where supply matches top the demand
in market so that appropriate price can be decided based on the graph. As the demand in market
for music festivals is increasing along with the increase in their supply the price of these festivals
depend on their equilibrium-price so that more people can be attracted by these events which will
help in earning high revenue in this industry (Hughes And et. al., 2017).
With the increase in trend of live music festivals for leisure and entertainment the
industry is growing at a high rate thereby contributing towards revenue generation for country. In
UK there are many music festivals that are being held each year which can help in increasing
profits for all the businesses in this industry. It can be said that the business environment for this
industry is favourable which can help in increasing the demand of music concerts in the coming

years. The economic diagrams represent an increase inn the revenue and profits in this industry
which can help in the expansion of this industry and also the businesses that are linked to this
industry can increase.
CONCLUSION
From the above report it can be concluded that business environment of event industry is
favourable which can help in the growth and development of businesses related to this industry.
This can help in increasing country revenue and also increasing the living standard of people by
increasing employment opportunities in market.

REFERECES
Books and Journals
Anderton, C., 2015. Branding, sponsorship and the music festival. The Pop Festival: history,
music, media, culture, pp.199-212.
Anderton, C., 2018. Music Festivals in the UK: Beyond the Carnivalesque. Routledge.
Dilkes-Frayne, E., 2016. Drugs at the campsite: Socio-spatial relations and drug use at music
festivals. International Journal of Drug Policy .33. pp.27-35.
Hughes, C.E. And et. al., 2017. The deterrent effects of Australian street-level drug law
enforcement on illicit drug offending at outdoor music festivals. International Journal
of Drug Policy .41. pp.91-100.
Ragsdell, G. and Clayton, D., 2016. Volunteers’ knowledge activities at UK music festivals: A
hermeneutic-phenomenological exploration of individuals’ experiences. Journal of
knowledge management.
Online
Festival market size in Europe from 2016 to 2020 .2020. [Online]. Available
through:<https://www.statista.com/statistics/752101/festivals-market-size-in-europe/>
Supply and demand .2020. [Online]. Available
through:<https://www.britannica.com/topic/supply-and-demand>