Real Madrid Club de Fútbol in 2007: Beyond the Galácticos

Anita  Elberse; John A. Quelch

Case | HBS Case Collection | December 2007 (Revised October 2008)

Real Madrid Club de Fútbol in 2007: Beyond the Galácticos

Abstract

On June 17, 2007, Real Madrid sealed its first Spanish league championship under new president Ramon Calderon, ending an unprecedented title drought. Real Madrid had seen a significant growth in revenues and now was the world's biggest soccer club and among the largest and most profitable sports franchises globally. Although Calderon signed several new stars in his first year, he also rejuvenated the team by acquiring the promising youngsters, thereby moving away from what had been dubbed the "Galacticos Strategy" introduced by former president Florentino Perez. Would the move away form this strategy bring continued successes on the field? And how would it impact real Madrid's business performance?

Keywords: Talent and Talent Management; Risk Management; Brands and Branding; Marketing Strategy; Sports; Sports Industry;

Format: Print

4 pages

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Citation:

Elberse, Anita, and John A. Quelch. "Real Madrid Club de Fútbol in 2007: Beyond the Galácticos." Harvard Business School Case 508-060, December 2007. (Revised October 2008.)

“Our goal is to be the kind of start-up that would terrify Nike—if Nike didn’t already own us.” Ron Faris, general manager of S23NYC, a Manhattan-based digital studio owned by sports apparel giant Nike, is on the phone with Adam Sussman, Nike’s chief digital officer. It is June 1, 2018. Two years earlier, Sussman was behind Nike’s push to acquire Virgin Mega, a startup comprised of Faris and his small team, which has since morphed into a studio that plays a pivotal role in Nike’s digital strategy. With the studio’s mobile app, SNKRS (pronounced ‘sneakers’), specifically, Nike seeks to strengthen its connection with the most fanatical of its fans—the sneakerheads—and “bring back the fun and emotion of buying,” as Sussman put it. Is Nike on the right path with its digital strategy and, in particular, with how it seeks to change the sneakers game and compete with rivals such as Adidas and Puma? Does it make sense for the company to pursue the kinds of innovations featured in the SNKRS app? And what kind of campaigns and activations should it prioritize in the future?

World Wrestling Entertainment, Inc. (WWE) develops and presents scripted hero-versus-villain storylines featuring its wrestlers at hundreds of live events, on several weekly television shows, on its own over-the-top streaming service, and on social media, to millions of fans around the globe. In January 2018, buoyed by the $800-million-dollar company’s strong prospects for further growth, WWE’s chief brand officer Stephanie McMahon and her husband, Paul ‘Triple H’ Levesque, a WWE wrestler who also serves as the company’s executive vice president of talent, live events, and creative, are discussing whether to add Ronda Rousey, who has made a name for herself as a judoka at the Olympics and as a mixed martial artist in the Ultimate Fighting Championship (UFC), to WWE’s roster. Should WWE try to sign Rousey, and, if so, what kind of offer makes the most sense? And is WWE well positioned for further success in the world of entertainment?

Case | HBS Case Collection | November 2018

Cepuros Foods Malaysia: Finding the Secret Sauce for Growth (Brief Case)

John A. Quelch and Katherine B. Hartman

Shelby Diaz, country manager for Cepuros Foods International—Malaysia (CFI-M), must decide a growth strategy for the expansion of CFI-M's line of salsas, particularly regarding whom to target and how to allocate marketing investments. CFI-M could expand aggressively by mass marketing to the general population. A more conservative approach would use targeted communications and promotions. Diaz needs to build an argument for a specific growth strategy and recommend which marketing investments CFI-M should pursue. The case can be used to discuss strategy, positioning, and marketing communications, which are relevant to considering alternative strategies for growth. The possibilities for growth include market penetration, product development, and/or market development. The case touches on the potential benefits and risks of each option given the competitive landscape, customer perceptions, and demand determinants. Students should find the product and distribution easy to understand, but the international market context provides a unique opportunity to apply core marketing principles. The case is recommended for upper-level undergraduate students or first-year MBA students studying marketing strategy. It can also be used in a course on international marketing.

Keywords: Growth and Development Strategy; Marketing Strategy; Marketing Communications; Product Positioning;

Citation:

Quelch, John A., and Katherine B. Hartman. "Cepuros Foods Malaysia: Finding the Secret Sauce for Growth (Brief Case)." Harvard Business School Brief Case 919-513, November 2018. View Details

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Real Madrid Club de Fútbol in 2007: Beyond the Galácticos

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