In our previous blog, we understood the SWOT analysis of the largest broadband communication company in the United States, Spectrum. Here we will understand the detailed SWOT analysis of ESPN.
ESPN – Entertainment and Sports Programming Network has been flourishing in cable sports channels since 1979. ESPN is one of the most successful sports networks in the United States. ESPN network operating offices are located in Miami, New York City, Seattle, Charlotte, and Los Angeles.
It has been successful to hold its position in the industry. It can still try to improve its standings in the global market with the use of the latest digital marketing techniques. Most people have entered the digital world and thus it is easy for any company to find its target audience in the market.
Thus every business needs to implement digital marketing. If you are anxious about learning what digital marketing is and how to use it to your advantage – check out our Free MasterClass on Digital Marketing 101 by the CEO and Founder of IIDE, Karan Shah.
In this case study, we will learn about the SWOT Analysis of ESPN. But first, let us know about the company and the product better.
ESPN is a sports entertainment company that was created with the idea of 3 men named Scott Rasmussen, Bill Rasmussen & Ed Eagan. Currently owned jointly by two companies, 80% by The Walt Disney Company and 20% by Hearst communications.
The company was founded in 1979 and has operated more than 30+ television networks, 90 broadband networks, 13 websites. They have their headquarters in Bristol, Connecticut. Currently, ESPN is available to 80 million people all over the world.
|Founder||Scott Rasmussen, Bill Rasmussen, & Ed Eagan|
|No. of Employees||4,000+|
|Market Cap||$ 50 Billion|
|Annual Revenue||$ 7.90 Billion|
|Net Income/ Profit||$ 2.08 Billion|
(List of Channels ESPN Telecast and Sales, Source: ESPN in Depth)
Products & Services by ESPN
- Original Video Content
- Live Games & Sports
- UFC Events
- In-depth Analysis of Sports
Competitors of ESPN
- The Athletic
- Blanco y Negro
- Catalyst Media Group
As now we have a better understanding of ESPN, let’s look into the SWOT Analysis of ESPN.
SWOT Analysis of ESPN
SWOT Analysis is a useful technique for developing business strategies for both new and current businesses. This simplified methodology is used to assess a company’s competitive standing. SWOT analysis of ESPN can help the organization develop effective and efficient business strategies.
To better understand the SWOT analysis of ESPN, refer to the infographic below:
So let us first start by looking at the strengths of ESPN from the burgeoning SWOT analysis of ESPN.
Strengths of ESPN
- Strong Company: ESPN is a strong parent company comprising 4 segments: media, parks, studios, and entertainment. Through the new initiative, ESPN explores new technologies like 5G, augmented reality (AR), and edge computing.
- Broad Connection: ESPN has broad connections in national as well as international channels. ESPN focuses on providing sports content to consumers over a high-speed internet connection.
- Large Distribution: It has a large distribution channel with more than 200 countries. It is one of the most famous sports entertainment companies, with a very good brand image.
- High Employee Rate: ESPN is one of the largest companies for sports entertainment, it has a huge number of people working under the company from all over the world for its success.
Weaknesses of ESPN
- Less Viewership: The TRP rate of the channel goes high only when there are some sports events, otherwise, there is less viewership compared to other channels, which leads to less TRP rate. The company always tries to gain opportunities of showing any sports event all the time.
- Decreasing Income: The company is getting less financial income for the last 2 years. Because of the pandemic. The pandemic hit the sports field too because of which they weren’t able to showcase any events.
- Seasonality: Media network revenues are seasonal. As during any sports event showcase, the revenue for that period goes high, other times it goes down. So the media network revenues become seasonal.
Opportunities for ESPN
- Diversity: The company has an opportunity for a large diversity and can start online services too. It has a strong brand image among the people which helps them to gain more customers.
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- Coverage of Various Sports: Currently, ESPN telecasts a limited number of sports; it can increase the coverage of various other sports which will also help ESPN to create a competitive advantage.
Threats to ESPN
- Competitors: The competitors for ESPN are the companies from media industries, entertainment companies such as companies like NBC Sports, Sky Sports etc. These media entertainers are very tough competitors for ESPN. NBC & Sky Sports have a good brand image among the users. ESPN must use tough strategies to beat its competitors.
- Changing Lifestyle: With changing lifestyles people watch less entertainment and media and have become more work-oriented. Most people prefer to see sports only on weekends because of their work-oriented life.
- Similarities Holding Viewership: Almost every sports broadcasting channel broadcasts the same and similar sports and events which leads to the division of viewers among ESPN & competitors.
- OTT Platforms: Due to the increasing shift of viewers towards OTT platforms, viewers are now more willing to watch their favourite sports on those platforms. This shift has affected the market of ESPN very badly.
This ends our broadly covered SWOT analysis of ESPN. Let us conclude our learning below.
As we saw the SWOT analysis of ESPN one of the most leading media entertainment companies. ESPN is a very famous company and they follow very strategic advertising campaigns. ESPN should come up with something new which will attract more traffic to their channels. They are also facing some challenges from online streaming platforms and competitors.
But, these challenges can be eliminated with the use of advanced digital marketing techniques. As most people have been using digital media nowadays it is easy for businesses to find their target market. Thus digital marketing is crucial for every business. If you are keen on learning and upskilling, check out IIDE’s 3 Month Advanced Online Digital Marketing Course to know more.
We hope this blog on the SWOT analysis of ESPN has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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