NASCAR's New Strategy Case Study Example | Topics and Well Written Essays - 750 words

NASCAR's New Strategy - Case Study Example The lawsuit filed by a shareholder can be detrimental to NASCAR in the long run as it can lead to huge contingent liabilities. Considering the prevalence of bias in favor of the company-owned ISC, there is a small probability that NASCAR will win the case. The new rating system put forward by Brian France is met by hesitation and resistance from the current drivers. This can also probably discourage other players and hurt the company's operations. Brian France also needs to consider these issues in the face of NASCAR's move in opening a new track in New York City. All of the aforementioned considerations will have a great impact on this market development strategy. Brian France has three strategic alternatives to choose from in order for NASCAR to sustain its position in the market: 1. focus on developing strategic alliances with its sponsors and forging new ones by finding new venues where the sponsors are given more exposure; 2. voluntarily divest its shares by selling some of its stock to other shareholders; and 3. finding new markets such as Canada. NASCAR recognizes that sponsors are the lifeblood of the business organization. Without sponsorships, stock car racing events will not be held and funded. Thus, the move in developing tighter strategic alliances with current sponsors will be advantageous. ... However, this will give NASCAR the problem of identifying ways on how added and enhanced exposure could be given. The company can also voluntarily divest its shares in order to ward off threats of other lawsuits because of bias and unfairness. This can also give the business organization new blood and ideas which can be beneficial in the long run. However, divestiture can posts problems especially on the management aspect. Looking for other markets like Canada will give NASCAR and its sponsors new opportunities to promote their products. However, in pursuing this alternative, the company also needs to shell out huge amounts of investments. RECOMMENDATION: This paper recommends that NASCAR pursue the first alternative that is, pursue tighter strategic partnership with its current sponsors through the identification of venues where they get more exposure. The company can do this by setting up online gaming and putting advertisements in its gaming website. NASCAR timed advertisement during games can widen the sponsor's reach and gives them more exposure thus, maximizing their investments.