Major League Baseball – the Real Competitive Advantages

499 Words2 Pages
Abstract MLBAM has created a competitive advantage on their competitors, but there are a few things that they need to look out for in the future. By using Porter’s Five Forces Model, MLBAMS can analyze its buyer power and supplier power and point out how it can increase its customer loyalty. MBLAM can also analyze how to detect competitive advantages and why it is important to secure its subscribers information. Major League Baseball – The Real Competitive Advantage A Competitive advantage is a feature of a product or service on which customers place a greater value that they do on similar offerings from competitors. MLBAM has created a competitive advantage by providing live baseball games and video clips to fans through the internet. Competitive advantages are typically temporary, because competitors often quickly seek ways to duplicate them. MLBAM needs to worry that its competitive advantage will be temporary and its competitors, or a new competitor, will take over its market by offering a new product or service at a low price or with additional value. Out of the five forces in the Michael Porter’s Five Forces Model, which analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry, MLBAM’s buyer power and supplier power are analyzed. MLBAM buyer power is low since there are only a few sites that offer this type of service and MLBAM is the first to market. MLBAM supplier power is high since the players are unionized and frequently go on strike if they do not get their demands met. MLBAM could implement switching costs and loyalty programs to reduce buyer power. They could also created entry barriers thereby reducing the threat of new entrants and increased efficiencies while seeking a competitive advantage through cost leadership. One of the

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