ufc case study

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-- by Team 4 2010-10-26

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let's take a look at the most traditional styles seen in MMA today: Boxing - Sometimes referred to as the 'Sweet Science'. Boxers utilize quick foot movements and technical punching with the fists. Brazilian Jui Jitsu - Developed from the Japanese art by the Gracie family in Rio De Janeiro, Brazil this martial art has proven one of the most influential and successful in MMA competition. Judo - Also derived from Japanese Jui Jitsu is well known for it's throws and holds and is one of the few martial arts to be featured in the Olympics. Karate - There are several well known forms of karate, with Kenpo being heralded as the first 'Americanized' version of karate. Kickboxing - Also one of the more popular styles in the UFC, with many effective techniques for use in MMA tournaments. There are many styles including Muay Thai featuring elbow and knee strikes. Wrestling - One of the world's oldest sports. There are a number of wrestling styles including the popular Greco-Roman and Freestyle styles of wrestling that use take downs and throws to subdue opponents without strikes.

Early development : 

UFC 1: a success Early development TV partner--SEG 86,592 PPV UFC 5:

Problems in early stage : 

Problems in early stage There Are No Rules! Establish a clear set of rules. Absence of standard set of rules Banned in 36 states

Strategy : 

Strategy Changed some rules Increase cooperation with state athletic commisions. Sept.30,2000,held its first U.S.sactioned MMA event in New Jersey

Zuffa LLC. Purchase : 

Zuffa LLC. Purchase ZUFFA bought UFC in 2001: Secure sanctioning Regain popularity Generate higher live gate---strategy: popularize events 1st major milestone: PPV buys hit 150,000 Problem: continued financial deficits

To avoid bankruptcy(Strategy) : 

To avoid bankruptcy(Strategy) cable TV ( creating TUF) Partnership with Spike TV More UFC content in Spike TV Promote UFC PPV cards Diversify fighters Highest ratings in the show’s history: 3.7-5.3million viewers

Reason of success : 

Reason of success Success: Maximize exposure with Spike TV Generate significant sponsorship revenues Dramatic increase in PPV buys and an overall explosion for the sport of MMA as a whole Reason of success: organization’s ability Ability to capitalize on the hype Positive feedback—cost efficiency

Expand into new markets : 

Expand into new markets WEC & PRIDE Control a Broder Range Unify the leagues

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New Competiton emerges MMA Giant Pose threat to compete in international market

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Fighters’ salaries Original fighters’ payouts A the average medical bills approximately$2500,Including MRI scan, CAT scan, blood work, an eye exam and a full physical examination B training expenses C travel and fight preparation

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What can they get? For the first-time fighters Winner get $2000 as rewards (if continue to win, get $2000 per fight) Loser lose money overall Lack of incentive

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Every sponsor is required to pay a licensing fee as high as $100,000 to the UFC for the right to sponsor a fighter. establish a new set of corporate sponsors,but inclined to seek strtegic partnerships UFC Lacks any form of union to protect the interests of its athletes and always had the final say on all sponsorship deals 2009 new rule Compare with other major sports leagues (NFL,NBA,MLB,NHL,ATP)

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International Expansion Opportunities WHERE United Arabe Emirates Mexico Unite Kingdom and Ireland Portugul & China

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sponsors" HOW ? Strengthened

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Within North America.Increasingly moving toward legalizing MMA However,the 2010 fight schedulefeatured more on international events Financial Overview

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Whether UFC is moving in the right direction?

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WHY? Too much focus on overseas market Vulnerable to the increasing competition A failure abroad would be devastating

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Potential of European, Middle eastern Asian markets should not be overlooked. However Not as simple as duplicating Despite the strong fanancial position, the UFC could not afford to make significant investment in unprofitable new markets

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Building the brand White and Fertitta brothers

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Hey I will take steps to protect it