My fellow classmate Eric Tsai wrote a blog about the effects of the NBA lockout on the business as well as on the fans. Eric Tsai stated that the current NBA lockout threatens the business as it allows fans to chose from other substitutes. He also explained how the lockout affects fan’s loyalty, as they might become frustrated to the point that they stop supporting the sport, and not invest in tickets, cable games, NBA accessories, etc. Therefore Eric suggested that the lockout is a losing strategy for both parties since the loss of fan support will devastate their business.
This topic can be related to the Porters Five Forces lecture, as well as to the Marketing research and Consumer Behaviour class. First I must disagree regarding the high amount of substitutes. NBA is by no means the only professional sport in North America, however it is much larger and more advanced compared to it’s closest direct substitute; NCAA basketball. Other pro sports should not be treated as close substitutes, and therefore we can assume that they will not affect an NBA fan’s judgement. Regarding consumer behaviour the NBA has conducted market research in the past, and after the last NBA lockout it took a long time to restore their fan base. Its easy to understand that all fans want is to see their favourite players step on the court, and the lockout is obviously impeding that. Even despite a very strong fan base the owners must realise that if they continue disregarding the interest of fans by prolonging the lockout, then this would result in profit losses from related goods & services sales. Therefore the only sensible option would be to end the lockout, and resume play.
Work cited:
“Upcoming NBA Season seems unpromising… | Eric’s blog.” UBC Blogs | Home. N.p., n.d. Web. 22 Nov. 2011. <https://blogs.ubc.ca/eric1121993/2011/11/16/upcoming-nba-season-seems-unpromising/>.
“Porter’s Five Forces.” QuickMBA: Accounting, Business Law, Economics, Entrepreneurship, Finance, Management, Marketing, Operations, Statistics, Strategy. N.p., n.d. Web. 22 Nov. 2011.<http://www.quickmba.com/strategy/porter.shtml>.