Monday, 15 June 2009

Rokaka v Yao Ming

Given the amount of money that Real Madrid has spent on acquiring the services of Rokaka, it would seem to be entirely predictable that the Spanish club will be adopting an aggressive overseas commercial strategy over the next five years. Markets including those in Central and South America could be important, but South-East Asian markets are likely to be even more important, particularly China which is often perceived as having tremendous commercial potential. However, there is a number of issues that football clubs like Real need to consider before the monetary value of such markets is fully realised: against whom are Real Madrid competing for market space and share in countries like China? Is it Manchester United and AC Milan; or the NBA and MLB; or Apple and Chanel? If it is actually the NBA, is the signing of Rokaka too little too late, has China already become a basketball nation? Has the NBA stolen first-mover advantage? Is signing two of the world's leading players the best way to enter and develop a market? Or is opening up a China office with 500+ staff, investing in a predicted 6,000 retail outlets and guaranteeing to help build thousands of basketball courts across China a more effective strategy? And is a collective strategy (the NBA) or an individual organisational strategy in which sporting rivals do not coordinate with one another (European football clubs) the most appropriate way of seeking a foothold in overseas markets? In which case, do European football clubs need to work together if they are to fight the challenges posed by sports such as basketball?

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