It ponders me every time discussing the motivation behind extreme sports. Risking your life to earn money? (Source: Economist Blogs) My life worths more than the rush of adrenaline during the race to me. Yet, because of the numerous of accidental deaths, Randy Barnard, President of IndyCar, saw the business opportunity in selling ‘danger’.

IndyCar is an auto racing sanctioning corporation. It has developed and restarted various of series throughout the decades, including IZOD, Firestone Indy Lights, Star Mazda Championship and US F2000.

The reason why IndyCar has become an outstanding business was because there are more people who think like me,meaning who prefers safely and security. However, fans dislike the attitude not pushing to the limit of racers. Among the competitors, IndyCar stands out as it embraces the riskiness and become a popular racing series.

Following is an analysis based on Porter’s Generic Strategies:

IndyCar belongs to a narrow market (auto racing) and its products are very unique. Although it is competing against NASCAR and Formula One, IndyCar has apparent advantage and popular qualities to win audience and sponsorships. In addition, although the company has less bargaining power against suppliers, it has limited competition because of the high entry costs.