2. 2
By: Nathan Chmiel, Madison Conroy, Mitch
Coughlin, Alan Pancake, Paul Price, and
Shane Toub
TABLE OF CONTENTS
OVERVIEW................................................................................................................... 3-9
VISION .............................................................................................................................10
MISSION .................................................................................................................... 11-12
GOALS AND OBJECTIVES.................................................................................... 13-15
ENVIRONMENTAL ANALYSIS ............................................................................ 16-19
STRATEGY................................................................................................................ 20-27
EVALUATION .......................................................................................................... 28-29
REFERENCE LIST................................................................................................... 30-31
APPENDIX A ...................................................................................................................32
APPENDIX B ...................................................................................................................33
APPENDIX C ...................................................................................................................34
APPENDIX D ...................................................................................................................35
APPENDIX E ...................................................................................................................36
APPENDIX E ...................................................................................................................37
3. 3
OVERVIEW
By: Madison Conroy and Mitch Coughlin
Products
With the magnitude that encompasses the realm of ESPN, many goods and services
are provided to make the success of ESPN so prominent in the organization’s rich
history. Though ESPN offers a myriad amount of goods and services within their
organization, we have fully analyzed and researched the most critical and essential
products that have allowed ESPN to be the commanding and prevailing organization that
it has become.
Goods
With over 2,132,897 issues sold in 2012, ESPN the Magazine is a lucrative and
remarkably successful good that ESPN produces. This biweekly magazine
provides subscribers with detailed information about major sports. From athlete
interviews to columnist articles, ESPN the Magazine has proven that they are one
of sports top magazines. ESPN the Shop provides fans with head to toe gear of
their favorite sports team. With licensed merchandise of MLB, NFL, NHL, AFL,
NBA, Golf, and College apparel, the official shop of ESPN allows their customers
to purchase all of the team apparel necessities.
4. 4
ESPN Zone is a sports-themed restaurant that provides an interactive sports
environment and ambiance. From radio stations to TV studios located in this
chain of restaurants throughout the United States of America, ESPN Zone creates
an atmosphere for sports entertainment and dining. With frequent radio and
television broadcasts that take place in these, ESPN Zone is a favorite sports and
dining experience for many sports fans.
Services
SportsCenter, the premier television program of ESPN, offers coverage and
detailed broadcasting of sporting event news on a global spectrum. SportsCenter
is aired 24/7 with new additions and coverage updated every hour with the latest
breaking sports news. SportsCenter has a routine airing schedule of 9 A.M. to 3
P.M. ET on weekdays in addition to an extra episode at 6:00 P.M., 11 P.M., and 1
A.M. ET. Since its debut broadcast on September 7, 1979, SportsCenter has aired
over 50,000 episodes. Furthermore, SportsCenter is well known for their
distinguishable reporters and staff members, such as lead anchors Hannah Storm,
John Anderson, and Lindsay Czarniak.
Since launching in March 2005, ESPNU, a sports television network and sister
channel to ESPN, has been dedicated to providing coverage for college athletics.
The first live broadcast on ESPNU telecasted the Ohio Valley Conference men’s
basketball tournament. ESPNU was created in response to a rivalry with CBS
Sports Network. ESPNU has the rights to games of major conferences, such as the
5. 5
Big 12, Big East, and the Big Ten. Furthermore, ESPNU is committed to
showcasing the collegiate sports of baseball, basketball, football, ice hockey,
lacrosse, soccer, softball, and volleyball.
Originally launched as ESPNet.SportsZone.com in July 1993, ESPN.com is now
ESPN’s official website. Some of ESPN.com’s sections on their website include
ESPN Video Games, Fanboard, ESPN Fantasy Sports, ESPN Sports Travel, and
ESPN Search to name a few. Furthermore, the website has devoted sections to
specific sports such as the NBA, MLB, NFL, NHL, College, Golf, Soccer, IRL,
and NASCAR. Each section of the website offers detailed information about
schedules, standings, players, injures, scores, and news to keep their customers up
to date about every aspect of a specific team. ESPNBoston.com,
ESPNChicago.com, ESPNDallas.com, ESPNNewYork.com, and
ESPNLosAngeles.com were all created in response to the diminishing use of print
newspapers and the resulting lack of sports coverage in local newspapers.
E: 60, an investigative and informational news telecast produced by ESPN, delves
into heart wrenching, serious, yet meaningful and motivational stories about
sports. Since its debut on October 16, 2007, E: 60, which runs for 60 minutes,
offers full insight into stories about international and American sports and
athletes. These stories explore the powerful connection of how sports play a part
in peoples lives.
Please refer to Appendix A for more goods that ESPN provides.
6. 6
Company Headquarters
The ESPN headquarters are located in Bristol, Connecticut. Bristol is only a few
hours away from New York and Boston making this central Connecticut location
an ideal home for the headquarters of ESPN. The campus consists of several
training departments, workout facilities, lounges, outdoor recreation, and
cafeterias that help develop the staff members both professionally and socially
amongst each other.
Please refer to Appendix B for a photo gallery of ESPN’s campus.
Leadership and Organizational Structure
ESPN has over 35+ departments that make up the organizational structure of the
company. Simply, the five main career areas of ESPN are multimedia, technology,
corporate, finance and accounting, sales and marketing. Several well-known anchors,
reporters, and executive leaders spearhead their broadcast team. The list of these anchors,
reporters, and executive leaders can be seen in Appendix C.
The President of ESPN is John Skipper. In just a short time serving in this
position (promoted on January 1, 2012), he has established television agreements with the
MLB, College Football Playoff, ACC, Big 12, Rose Bowl, Sugar Bowl, and Orange
Bowl. He has also created ESPNW- a news and commentary branch of ESPN that helps
inform the public of women sports while promoting them at the same time. Skipper’s
great success in such a short time has helped him establish a strong relationship between
the fans and ESPN entertainment.
7. 7
With ESPN having such a well-known and highly regarded brand, it is essential
that the management system of the organization work effectively and efficiently.
Although there are five different career areas of the company, each one works through
and with each other to achieve the ultimate goal established by the mission. The values
consist of Diversity Leadership, Diversity Recruitment, Strategic Relationships,
Work/Life, Organization and Culture, and Employee Development. These values can be
found in Appendix D. Their employment of both female and male anchors/reporters and
employees of multiple ethnicities support the diversity of ESPN. Such employees include
Sage Steele, Dari Nowkah, Hannah Storm, Kevin Negandhi, and several others. Many of
these employees start their careers in lower level management positions within ESPN.
Key Events in the Organization’s History
While the history of ESPN is extensive, we examined and focused on the key
events in the organization’s history. On September 7, 1979, ESPN was created and hosted
their first show, SportsCenter. Three short years later, in February 6, 1981, Rhonda Glenn
joined the SportsCenter staff as the first full-time female sportscaster. ESPN continued to
expand as SportsCenter reported live from the sidelines at SuperBowl XVI. With their
goal of globalization and diversity, SportsCenter first aired internationally in Brazil and
Portugal in January 2000. Most recently, on September 13, 2013, SportsCenter aired its
50,000th episode.
Size of Company
In 2012, the projected revenue of ESPN was $8.2 billion. According to a research
report about ESPN, ESPN total’s worth is $40 billion (Badenhausen, 2012). An average
salary for an ESPN employee is $79,954 and the salary range extends from $27,000 to
8. 8
$240,000. ESPN has 4,000 employees currently employed at their headquarters in
Bristol, Connecticut. There are over 7,000 worldwide employees that work for ESPN.
ESPN headquarters are located in Bristol, Connecticut and ESPN has 14 other
locations in the United States of America as well as 7 locations in other countries. Each
location in the United States hosts specific departments of ESPN. The Seattle,
Washington location hosts the Digital Media and Sales and Marketing department.
ESPN’s first location in California was in San Francisco, where an additional Sales and
Marketing department is located. Los Angeles, California is home to the LA Production
Center, which is a part of the L.A. Live Complex. L.A. Live Complex is an entertainment
sector in Los Angeles with restaurants, clubs, hotels, theaters, and shopping centers.
Albuquerque, New Mexico, is home to the departments of ESPN Regional TV and Sales
and Marketing. Additionally, Denver, Colorado has a Sales and Marketing department.
The Dallas, Texas office hosts many departments including ESPN Radio, ESPN Regional
TV, Sales, ESPN Local, Digital Media, and Sales and Marketing. The Midwest, Chicago,
Illinois is home for ESPN Local, Digital Media, and ESPN Radio departments.
Moreover, Pittsburgh, Pennsylvania has Sales and Marketing and ESPN Radio
departments. The Charlotte, North Carolina home office is host to many different
departments.
The ESPN Regional Television production and operations, ESPNU production
and operations, Studio Directing, Facilities, Engineering, Production Operations, and
Transmission departments are all hosted in the North Carolina office. Orlando, Florida,
home of the joint venture between ESPN and The Walt Disney Company, hosts the
BASS, their fishing department, Sales and Marketing, and Technology departments. The
9. 9
Miami, Florida departments include Deportes radio and Sales and Marketing. New York
City, New York includes over 10 different departments that make up ESPN. Finally,
Boston, Massachusetts is home to the ESPN Local and ESPN Scouts departments.
Global ESPN locations include London, United Kingdom, Cape Town, South
Africa, Sao Paulo, Brazil, Buenos Aires, Argentina, Bangalore, India, Kotmale, Sri
Lanka, Hong Kong, China, Tokyo, Japan, and Sydney, Australia. With the locations and
departments that ESPN has in the United States and the several diverse and distinct
locations in other countries, it is evident that ESPN is a multinational organization.
10. 10
VISION
By: Nathan Chmiel
ESPN’s vision is to serve sports fans wherever sports are watched, listened to,
discussed, debated, read about or played. To do that ESPN’s most valuable resource, is its
employee’s care and respect for each other will always be at the heart of their operations.
ESPN strives to fully embrace diversity to best serve all sports fans worldwide.
Core values are very important to the ESPN organization, ESPN strives to create
and maintain a solid foundation of core values in order to successfully and ethically run a
successful organization. ESPN endeavors to treat their employees with respect because
their employees are ESPN and it’s only as good as they make the company. Thus, one of
ESPN’s most prominent core values is diversity. Some of ESPN’s other core values are
teamwork, quality, creativity, integrity, and the aggressive pursuit of new ideas, audience
growth, and building shareholder value.
With core values comes a core purpose. A core purpose is essential in order to
cultivate and sustain a global organization like that of ESPN. A core purpose of ESPN is
to work passionately to become the premier sports information source by coming up with
new and creative ideas, gaining and prospering audience growth, and building and
financing shareholder value.
11. 11
MISSION
By: Alan Pancake
ESPN Mission and Diversity Statement
One of ESPN’s goals is to create and maintain a desired public image and
reputation. Through diversification and a strong brand, ESPN strives to be a leader in the
community. Community initiatives such as The Jimmy V Foundation have raised over
$90 million in 20 years. Fans Helping Fans and Team ESPN are two outreach programs
of ESPN. These corporate outreach programs strive to raise money for different charities
and ultimately join fans and ESPN employees to leave an impact in communities across
the world. Additionally, ESPN has a diversity mission statement. One of their goals of
diversity is to create a desired public image and try to provide an inclusive environment
where all employees can contribute to their full potential. Thus, ESPN has established the
following organizations to establish diversification within the company: Gay & Lesbian
Alliance Against Defamation (GLAAD) - Outstanding TV Journalism and Women in
Cable Telecommunications (WICT) - Best Companies for Women in Pay Equity.
Furthermore, ESPN was awarded DiversityInc's Top 50 Companies for Diversity, which
exemplifies their desire to create diversity within the organization.
The target market and customers for ESPN is all sports fans. With 14 office
locations in the United States of America and seven office locations in other countries, it
is indisputable that ESPN tries to reach every attainable market across the globe. Given
12. 12
the large capacity that encircles ESPN, the organization contends to extend their market
to all genders and races, so that all fans can join in the celebration of sport.
The principal products and services that ESPN renders is to serve sports
everywhere in where they are watched, listened to, discussed, debated, read about, or
even played. All of these dynamics of how ESPN renders their products and services
allows ESPN to be a recognizable and world-renowned organization that permeates
within customers around the globe. ESPN serves sports in all spectrums. From watching
sports on television to listening to sports on the radio to even sports being debated,
discussed, and played, ESPN seeks to provide products and services that can be displayed
in different mediums of technology.
ESPN commits itself to growth and profitability every time a show airs on the
network. Every program on an ESPN network generates viewers leading to profit and
ESPN is constantly adding new shows, in the last few years the number of different
shows on ESPN networks has increased tremendously. ESPN continues to prove why it is
the top sports programming network on television. ESPN is also committed to expanding
their growth and profitability through diversity. ESPN details specifically that diversity
will lead to continued growth and a more profitable company, which is their ultimate goal
in their Diversity Mission Statement.
Please refer to APPENDIX E for ESPN’s Mission Statement.
13. 13
GOALS AND OBJECTIVES
By: Paul Price and Shane Toub
Goals & Objectives
Through research and investigation, we discovered that ESPN has dozens of goals
and objectives. However, we have narrowed the focus to the six most important goals: 1)
to provide a media network which televises sports 24/7; 2) to sustain global leadership in
multimedia sports entertainment; 3) to maximize television ratings by providing a well-
rounded sports schedule; 4) to expand the ESPN brand internationally; 5) to continue
making a difference in the lives of others through charitable initiatives; and 6) to promote
and resurrect a greener world through certain environmental initiatives. More so, we have
also found that ESPN has created a set of objectives in order to achieve their goals. These
objectives will be included and discussed in the following paragraphs.
First, ESPN strives to provide a media network, which televises sports 24/7. In
order to achieve this goal, ESPN must fiercely compete with other sports networks for
television rights. Thus far, ESPN provides more than 25 programs to over 115 million
viewers per month. These programs include sports news telecasts, such as their acclaimed
SportsCenter. ESPN also offers a number of talk radio programs, as well as debate-
structured programs (Around the Horn). More so, ESPN also focuses on specific sports
by televising programs that are primarily focused on the NFL, MLB or NCAA.
Second, ESPN is also motivated to sustain global leadership in multimedia sports
entertainment. In years past, ESPN has succeeded in boxing out other sports networks,
14. 14
such as Fox Sports 1 and NBC Sports Network for media rights. For example, ESPN has
recently renewed its contract with Monday Night Football for $15 billion, extending its
coverage into the year 2021. This gives ESPN the ability to control one of the highest
rated sports programs. Additionally, this contract renewal has blossomed into an
opportunity for ESPN to televise NFL Post Season events, such as Wild Card games
through 2021, if agreed upon by both parties.
Third, ESPN has a goal to provide a well-rounded schedule. This means covering
the major sports, as well as minor sports, such as tennis, soccer, softball, and golf.
Implementing minor sports into network coverage will increase viewership and the fan
base for said sports. More so, this strategic maneuver takes into consideration those
viewers who aren’t necessarily interested in football, basketball, or baseball, and gives
them an opportunity to enjoy watching other sports.
Fourth, ESPN is trying to expand its name brand into various geographic
locations across the globe. Traditionally, ESPN has been solely an American television
station, but over the years their brand has grown worldwide, providing ESPN locations
on six of the seven continents. Recently, ESPN attempted to gain a foothold in Europe,
but was faced with an obstacle when trying to secure broadcasting rights to English
Premier League soccer. ESPN’s newest plan involves more of a focus on South America
(Latin America).
Fifth, ESPN aims to be a positive force in the community through charitable
work. Most notably, the Jimmy V Foundation, one of ESPN’s largest charitable
programs, has contributed $100 million to cancer research. By constructing a charity
based on the life of sports icon, Jimmy Valvano, ESPN is able to make their charitable
15. 15
devotion public and completely applicable to the content of their channel. ESPN devotes
an entire week to the charity called “Jimmy V Week” in which they raise awareness for
the charity as well as cancer. ESPN fulfills some of their societal obligation by running a
large charity with a good reputation, due to 100% of profits donated directly to benefit
cancer research. In addition to giving back to the community, the charity also creates
positive public relations for ESPN, and ESPN continues to sponsor the charity.
Lastly, ESPN aims to produce “a greener planet for us all to play on” (ESPN). In
doing so, ESPN stresses the fact that the Earth needs and deserves just as much attention
as sports. Looking back, ESPN has hosted several events, such as the 2008 and 2009
ESPYS, which they claimed to be 100% waste-free and carbon neutral. More so, ESPN
has adapted their offices to an eco-friendly work environment by providing compostable
containers, cutlery, and napkins. ESPN also provides several stations for donations,
where by employees may feel free to deposit any recyclables, such as cell phones,
batteries, light bulbs, and used cooking oil. Proudly, ESPN ranks among the top 50
“greenest” companies in the U.S. According to ESPN Senior Director of Global
Construction and Facilities Engineering, John Cistulli, “ESPN as a company was already
well down the road on implementing energy saving and sustainable-design measures”
(Cistulli, 2013). In the next few years, ESPN aims to send zero waste to landfills, have a
net positive impact on ecosystems, minimize water use, and minimize product footprint.
Without argument, ESPN’s goals and objectives seem tremendously achievable,
and the organization has the facts to prove it. Ultimately, ESPN’s success lies within the
clarity, efficiency, and interrelatedness of its goals and objectives; no goal can be
16. 16
accomplished without the other(s). More so, each goal and objective refers back to
ESPN’s overall mission and vision.
Please refer to Appendix F for the Objectives.
ENVIRONMENTAL ANALYSIS
By: Shane Toub
Competitive Forces
Rivalry among competing firms:
ESPN has two main competitors: NBC Sports Net and FOX Sports 1, both
relative newcomers to the realm of 24 hour sports channels. ESPN currently holds a
comfortable lead over its competitors, dominating in total viewership. NBC Sports has
an advantage in specialized markets, for example the broadcasting rights to English
Premier League Soccer. FOX Sports 1 has the rights to broadcast certain college football
games from high-profile conferences like the Big-12 as well as the Pac-12. Like NBC
Sports Net, FOX Sports 1 will have a grasp on specialized sports such as mixed-martial-
arts, horse racing, and motor-sports, which ESPN tends to either neglect with their
coverage, or cover at odd hours. ESPN’s strategy will be to continue to offer to air the
events that they believe will garner the most viewers, which will ultimately allow them to
continue be the most lucrative of the 24-hour sports stations.
2. Potential development of substitute products and services:
3. Potential entry of new competitors:
17. 17
As previously discussed, a couple newcomers have arrived to compete with
ESPN. A more severe threat is the rise of specialty networks such as NFL Network,
MLB Network,
4. Bargaining power of suppliers:
ESPN has a delicate relationship with its suppliers, who are primarily the leagues
that they broadcast. In order to have broadcasting rights, ESPN must negotiate with the
leagues for them. For example, in order to be able to broadcast Monday Night Football,
an event with many viewers, ESPN had to pay a hefty price to the NFL in order to
prevent another network from carrying it. Big-time suppliers like the NFL, NBA, MLB,
and NHL have a good deal of bargaining power, while less popular sports like NASCAR
and Professional Bowling have significantly less bargaining power, and will ask for less
in order to get broadcast.
5. Bargaining power of consumers:
As long as ESPN has control of the rights to broadcast the most popular sporting
events, the viewers of these sports, ESPN’s consumers have little bargaining
power. While they could theoretically tune out, it is highly unlikely that they would
forego watching their favorite sports, making this an unrealistic threat for ESPN. The
fan’s dependence on ESPN is what allows ESPN to hike up their fees for being a part of
basic cable packages, because they know sports fans will pony up to pay it.
18. 18
Competitive Advantage
By: Paul Price
According to Cole Ehmke, professor at University of Wyoming, “A competitive
advantage is an advantage gained over competitors by offering customers greater value”
(2008). Moreover, statistics show a company’s competitive edge gradually expands,
which helps produce a core of loyal customers. Now, one might argue that competitive
advantage should be characterized as one specific factor, but ESPN proves the contrary.
Ultimately, ESPN has three competitive advantages. However, these advantages are not
comparative advantages, but rather differential advantages (products or services different
from its competitors that are seen as better than the competitor by customers). These
advantages are equally essential and clearly interrelated, meaning one advantage would
not have been created without the help of the other. As a result, the advantages help
ESPN offer superior value, and help provide additional benefits and services to its
consumers.
The first competitive advantage is the organizational structure of ESPN, leading
to global distribution of its products and services. Unbeknownst to some, ESPN has a
parent company, The Walt Disney Company, which provides exponential benefits
through their massive joint venture with ESPN, A+E Networks, and Hearst Corporation.
19. 19
Therefore, one benefit of ESPN is its sheer size. Being such a large part (80%) of the
Disney Media Networks joint venture, ESPN receives ample resources and funding (as if
they need it) from their parent company, helping ESPN grow more powerful each year.
More so, its size and resources give ESPN access to over 100 media stations. The diverse
broadcasting availability makes it very easy for ESPN to distribute its products and
services to nearly 115 million satisfied viewers.
The second competitive advantage is the stable and successful brand name ESPN
has created among its constituents, which is only accomplishable because of the first
advantage. In 1979, ESPN started strong, but the company needed to adapt, in order to
keep up with societal changes. One focus was the ESPN logo; it wasn’t appealing, and
needed adjustment. So, in 1985, ESPN rejuvenated their logo and used its “cool,” new,
chiseled look to its advantage, quickly gaining the viewership of emerging Generation Y
audiences. Today, ESPN is arguably the most recognized logo in the 21st Century,
because of its market appeal, and extraordinary global exposure. This advantage is
directly related to the first and third advantage.
The third competitive advantage is the variety of products and services ESPN
offers, through its superior customer experience, which only accomplishable because of
the first two advantages. As stated in the goals section, ESPN aspires to “maximize
television ratings by providing a well-rounded sports schedule” (13). Thus far, ESPN has
had no problem achieving this advantage. The diversity among its broadcasts (consisting
of SportsCenter, Around The Horn, Outside The Lines, as well as multiple, and unique
sports events), in addition to its 24/7 coverage, makes ESPN much different from their
competitors.
20. 20
Arguably, ESPN would not be the organization it is today without the help of
these three competitive/differential advantages. Clearly, ESPN has been successful for
years because of its relationship with Disney, popular brand name, and product diversity.
These are the overall reasons ESPN differ from their competitors. It is also the reason
why consumers choose ESPN over their other networks.
STRATEGY
Growth Strategy
By: Madison Conroy
As an established and stabilized organization, ESPN pursues the concentration
growth strategy. ESPN is advantageous in aggressively growing their existing and current
line of business. Furthermore, ESPN drives their line of business to compete with
unreached growth potential by continuously building a dominant line of business. With
ESPN’s total revenue growing at least 9% each fiscal year, ESPN is committed to
pursuing success on all levels of the organization (Greenfeld, 2012).
One aspect of the organization in which ESPN is growing vigorously on a daily
basis is in television. ESPN strives to continue raising their viewership amongst
customers. ESPN earns and makes one out of every four dollars that is earned and
generated by cable stations in the United States of America, which illustrates ESPN’s
desire to maintain the growth and expansiveness of their organization (Greenfeld, 2012).
John Skipper, President of ESPN, understands and is aware of how the market
and cultural environment is constantly changing. This is why ESPN and its affiliates
continue to grow their line of business by pursing greater opportunities within media.
21. 21
Thus, John Skipper describes the growth of ESPN as to “build, build, build. There comes
a time when a lot of businesses become calcified, but we never stop building” (Greenfeld,
2012, p. 1). This mentality and mindset that ESPN accounts for allows for this
organization to continually expand and prosper in their current line of business.
ESPN has gone beyond the realm of the worldwide leader in sports and has
transcended into a sports and entertainment empire. ESPN continues to be a growing
dynasty of providing sports to a global audience by having the media rights to the Major
League Baseball, National Football League, National Basketball Association, Major
League Soccer, NASCAR, four Grand Slam tennis tournaments, three golf
championships, and major college football conferences. ESPN’s continuous growth has
allowed this organization to broadcast more than half of US sports that are shown live.
ESPN’s concentration on providing different platforms for the public to view ESPN on
the television, mobile applications, online, and magazines has allowed ESPN to promote
and market their product to the global audience.
ESPN’s concentration on the future path of the industry will allow the
organization to develop and find success in different platforms, which will ultimately
allow ESPN to continue the growth of this sports dynasty. ESPN’s has a devout
willingness to concentrate not only on their current line of business, but rather their future
line of business. ESPN is focusing on a new interactive project. This screen project will
allow viewers to watch multiple ESPN channels, buy ESPN products, send messages on
Twitter, Facebook, and texts, and find different statistics about athletics all in the click of
a button. This example clearly exemplifies ESPN’s desire to aggressively drive the
22. 22
growth of their business. ESPN’s endeavor to growth within all aspects of the
organization has allowed this company to become the almighty dynasty of sport.
Business Level Analysis
By: Mitch Coughlin
In accordance with the BCG growth-share matrix, the primary “cash cows” of
ESPN include its television networks, magazine, and website. SportsCenter has aired
over 50,000 episodes and the plethora of other programs aired on ESPN, including
Around the Horn, Pardon the Interruption, E:60, and many more, generate a consistent
revenue for the business. Together with ESPN the Magazine and espn.com, the total
revenue of these three facets of ESPN combine for roughly $10.3 billion (Badenhausen,
2012). ESPN the Magazine is distributed biweekly, while espn.com and ESPN television
can be accessed daily. These three features of ESPN haven’t changed much over the
years due to the fact that they have been able to generate high amounts of revenue
throughout their entirety. For the most part ESPN just needs to regulate these features
marginally to accommodate the needs of the sports industry spectators.
Examples of the BCG growth-share matrix “stars” of ESPN are the company’s
mobile applications. These applications include ESPN ScoreCenter, WatchESPN, ESPN
Radio, ESPN F1, and several others. All of these applications can be downloaded on any
23. 23
mobile device and thus can be accessed anywhere at the tap of a button or icon.
According to Steve Donohue, the revenue generated by these mobile application tops
over 10’s of million of dollars. ESPN has realized that these the mobile media empire is
growing, and that it can be a valuable asset of practically any company. Thus, the
business has expanded their mobile media application sector to adapt to the new trends of
the industry and accommodate to the customer’s needs. Although these mobile
applications do not generate as much revenue, both in terms of magnitude and
consistency, as the TV, website, and magazine facets do, they still generate additional
income in an emerging market.
A “question mark” of ESPN would include ESPNW; this sector of ESPN was
established to promote and cover women’s sports. ESPN has branded themselves upon
the ideal of diversity and the company expanded upon this notion by creating ESPNW in
July 2010. John Skipper has seen this as an opportunity to enter into a high potential
market that is not quite fully developed but certainly has room to grow. Women’s sports
are increasingly becoming more popular and ESPN hopes to remain ahead of the game by
providing coverage and endorsing the industry.
A “dog” of ESPN is the negotiation troubles it has had with Dish Network.
Disney has been granted an extended deadline in order to avoid an ESPN blackout for
Dish Network subscribers. Dish claims that sports aren’t necessary for all their
customers, and since ESPN charges $5.45 a month (SNL Kagan), they believe that this is
an unjust service forced upon customers. ESPN has had little success with cooperating
with Dish Network, and as a result they have generated low returns in a low cooperative
market.
24. 24
Business Level Strategy
By: Madison Conroy
ESPN is constantly and consistently trying to enter new markets to improve their
business unit growth. Furthermore, ESPN’s conscientious response to offering new
products allows for this organization and company to be an empire and dynasty of sports
allows for this organization to engage in the adaptive strategy. The prospect aspect of the
adaptive strategy, which is creating new products and entering new markets, for ESPN is
its mobile application. ScoreCenter, ESPN’s mobile application, clearly is a strong
strategy for the fast-changing, yet potential growing environment of ESPN. With John
Skipper’s prominent vision for the future of the industry, ScoreCenter was created due to
the adaptive changes that the industry is facing. With the constant demand and need for
sports news feed, personalized and customized news, video highlights, scores, and stats
are available on this mobile application. Furthermore, live scoring alerts and reminders
are sent to the customer’s phone. Live gamecasts and in-depth coverage of the mobile
application allows the customer to stay connected with the latest news. Not only does
ESPN ScoreCenter allow customers to follow sports news wherever and whenever, the
25. 25
mobile application can be downloaded for free on Android, Apple, BlackBerry, Windows
Phone tablets and phone. The strategy of allowing the mobile application to be
downloaded on all major phone and tablet systems easily lets ESPN to adapt to the ever-
growing technology changes. Thus, ESPN continues to aggressively and undoubtedly
offer and produce new products to stay relevant with the fast-changing environment of
the sport industry.
With ESPN’s prominent dominance in television and media rights, ESPN is
constantly trying to defend this strong strategy that encompasses their company. FOX
Sports 1, NBS Sports Network, and CBS Sports Networks are threats to ESPN in terms
of television viewership. The consistent and continual improvement to expand these three
sports channels makes it an extensive demand for ESPN to continually maintain their
market share and television viewership. Therefore, ESPN stabilizes its defending position
of television rights by having over 100 million subscribers to their line of ESPN channels
(Greenfeld, 2012). Furthermore, ESPN charges cable companies over $5 per month for
each of its subscribers (Greenfeld, 2012). While these fees may seem very high for
subscribers, the companies continually increase in viewership and subscribers per month
allows for ESPN to defend its position as the leading sports television network. ESPN
increases its market share and defends its strategy of television rights by recently
negotiating a $5.6 million television deal with Major League Baseball (Greenfeld, 2012).
ESPN’s deal with the MLB sets to acquire playoff games, regular-season games, radio
and internal rights, exclusive highlights, and the rights to show all of this content in their
mobile application, ScoreCenter. This deal will ultimately let ESPN to drive their line of
26. 26
business strategy. This evidentiary example solidifies the defensive strategy of ESPN in
which they continually strive to stabilize and maintain their current product line.
ESPN also advances and delves into new markets in order to find and analyze
new opportunities within the industry. A new market that ESPN seeks growth is in
espnW, which is a branch of ESPN that creates a voice for women who love and enjoy
sports. While ESPN appeals to many demographics, espnW is devoted women’s sports.
espnW markets to women of ages 18 to 34. In 2010, only 8% of women’s sports were
shown on ESPN (Thomas, 2010). Due to this diminishing attention that women’s sports
receive, espnW allows for women to be equally represented in sports. Both Gatorade and
Nike have pledged to be sponsors of this organization. Moreover, espnW is looking for
ways for this branch of ESPN to have its own sports channel. While 44% of football fans,
36% of NBA fans, and 45% of MLB fans compromise of women, this untapped market
fully allows for ESPN to move into new markets in which other sports networks have not
delved into (Thomas, 2010). ESPN’s devout interest to deliberately create new markets
and new revenue streams ultimately allows for this organization to analyze the potential
growth that the organization could benefit and reap from in the future.
Marketing Strategy
By: Mitch Coughlin
ESPN’s primary products include its media broadcasting services and the tangible
goods they sell online and through Dick’s Sporting Goods. “Total ESPN
revenues, including the networks, magazine and website, are $10.3 billion”
(Badenhausen, 2012, p. 1). Just its affiliate fees alone have risen 8% annually within the
past several years, and the monthly charge of ESPN and ESPN2 are $5.13 and $0.68
27. 27
respectively which combined crush the next highest charge from TNT at $1.18
(Badenhausen, 2012). ESPN has reached such heights of success in television revenue
largely in part to its advertising and great marketing strategies. The company produces
numerous commercials on a regular basis that commonly include a news anchor paired
with a sports celebrity interacting in a comedic scene. Examples of these commercials
include Albert Pujols portrayed as a machine, the Manning brothers fighting during an
office tour, Clayton Kershaw throwing pencils through the ceiling, and several others.
These commercials conclude with a “This is SportsCenter” slogan. The commercials
have had such great success due to the fact that they portray ESPN in a humorous manner
and also relate famous athletes with the program. In addition to these commercials, ESPN
also markets themselves with more professional advertisements that bring awareness to
major games and events such as Monday Night Football and the BCS Countdown Show.
ESPN has also been able to effectively brand itself through the internet and print
mediums. ESPN’s website has several links to provide entertainment to fans and provide
them with top level sports news. In addition, ESPN the Magazine includes several
promotions and keeps fans more densely updated on a biweekly routine. The huge market
produced by ESPN’s television rights, online media, and print have helped generate a $40
billion net worth value for the company.
28. 28
EVALUATION
Goals and Objectives of Strategic Plan
By: Nathan Chmiel and Alan Pancake
ESPN is very successful providing a television station that has sports on 24/7. They
ultimately provide many different programs covering a variety of sports. ESPN also uses
television programs that debate sports and will let viewers use social media to participate
in these shows. Also with ESPN News, ESPN covers news in sports and when you
cannot watch ESPN, they utilize the radio to cover sports.
To sustain global leadership in the sports entertainment field ESPN has been able to
keep other television outlets out of the limelight. ESPN has been able to keep stations like
Fox Sports 1 and NBC Sports Network from capturing big markets like Monday Night
Football, which is one of the highest rated sports programs on television. Signing that
particular deal with Monday Night Football has also lead ESPN to being able to cover
post-season games for the NFL as well.
29. 29
ESPN has been able to keep a well-rounded schedule to keep viewers interested in the
programs that they offer. ESPN also offers a wide range of major sports, which makes
ESPN’s viewership grow. They also have a staff of hosts that provide colorful and
different insight on the different sports, which some people might only watch the show
because of the certain analyst.
ESPN has the goal to expand the brand name to every region of the world. With its
expansion in six of the seven continents and its recent surge in Latin and South Americ,a
ESPN is beginning to achieve this goal. As the people of ESPN would say, it will not be
satisfied until it has an influence in all regions of the world and control of every sports
television market.
Another one of ESPN’s goals is to be seen as a charity friendly organization. As well
as supporting charities it has its own, The Jimmy V Foundation is one of the largest and
most well known charities. Raising over 100 million dollars for cancer research, the
Jimmy V Foundation ESPN has done more than its share of contributing to cancer
research.
Another goal of ESPN is to help the world be a “greener” place. ESPN has helped to
promote and lead the charge for a better planet. They have done so by implementing
stations to donate or recycle things such as batteries, light bulbs, and used cooking oil.
ESPN has also adapted its offices to be more eco-friendly by providing compostable
containers, cutlery, and napkins. These adaptations have allowed ESPN to be ranked as
one of the top fifty greenest companies in America.
30. 30
RECOMMENDATIONS
espnW
By: Madison Conroy
While ESPN has been a continuing dominance for sports, the presence of espnW
is a branch of the company that can assuredly be grown to expand ESPN’s vision and
mission. Women’s sports are not covered and broadcasted as equally as men, but there is
an untapped market of women’s sports and sports fans that could be a lucrative business
for women. Now more than ever, there are more women broadcasters and aspiring
women’s sports and athletes that could ultimately be represented in an important market.
Currently, espnW has a Facebook and Twitter account to promote the presence of
women’s sports. While there has been discussion of creating an espnW channel, this
branch of ESPN has potential to create a worldwide presence beyond just a channel.
Offering a women’s ESPN magazine, developing an app, broadcasting channels, and
creating a presence in the community will allow for espnW to provide equal coverage and
representation for women in the sports world. This female-friendly branch of ESPN has
31. 31
the upmost support of ESPN that will ultimately allow for espnW to cultivate in
advantageous and equitably business for women,
REFERENCE LIST
32. 32
Badenhausen, K. (2012, November 2). Why ESPN is worth $40 billion as the world’s
most valuable media property. Retrieved: October 18, 2013 from
http://www.forbes.com/sites/kurtbadenhausen/2012/11/09/why-espn-is-the-
worlds-most-valuable-media-property-and-worth-40-billion/.
Donohue, S. (2013, August 7). Disney: WatchESPN generating ‘tens of millions’ in
annual ad revenue. Retrieved: November 15, 2013 from
http://www.fiercecable.com/story/disney-watchespn-generating-tens-millions-
annual-ad-revenue/2013-08-07.
ESPN.com (n.d). Retrieved: October 12, 2013 from http://espn.go.com.
ESPN, Inc. Fact Sheet. (n.d.) ESPN MediaZone. Retrieved: October 14, 2013 from
http://espnmediazone.com/us/espn-inc-fact-sheet/.
ESPN Jobs and Careers. (n.d.) Retrieved October 14, 2013 from
http://espncareers.com/default.aspx.
ESPN Mobile Product. (n.d.) Retrieved: November 15, 2013 from
http://espn.go.com/mobile/products/products?id=8756241.
ESPN On Air. (n.d.). Retrieved: October 14, 2013 from http://espn.go.com/espntv/.
ESPN Salary. (n.d.) Salary Listing. Retrieved: October 18, 2013 from
http://www.salarylist.com/company/ESPN-Salary.htm.
ESPN The Magazine. (n.d.). Retrieved: October 14, 2013 from
http://insider.espn.go.com/insider/espn-the-magazine/.
ESPN Zone. (n.d.). Retrieved: October 14, 2013 from http://www.espnzone.com.
Greenfeld, K. T. (2012, 30 August). ESPN: everywhere sports profit network.
Businessweek.com. Retrieved: October 17, 2013 from
http://www.businessweek.com/articles/2012-08-30/espn-everywhere-sports-
profit-network.
Official SPN Shop. (n.d.) Retrieved: October 13, 2013 from http://www.espnshop.com.
Sandomir, R., Miller, A. J., and Eder, S. (2013, August 2013). To Protect Its Empire,
ESPN Stays on Offense. Retrieved: November 15, 2013 from
http://www.nytimes.com/2013/08/27/sports/ncaafootball/to-defend-its-empire-
espn-stays-on-offensive.html?_r=0.
Sherman, A. (2013, October 1). Dish Extends Disney Deadline to Avoid ESPN, ABC
Blackout. Retrieved: November 15, 2013 from
33. 33
http://www.bloomberg.com/news/2013-10-01/dish-reaches-extension-with-
disney-avoiding-espn-abc-blackout.html.
Thomas, K. (2010, October 15). ESPN Introducing espnW, a Digital Presence for
Women. New York Times. Retrieved: November 15, 2013 from
http://www.nytimes.com/2010/10/16/sports/16espnw.html?_r=0.
Worster, H. (2013, May 13). THE LINEUP: Top 10 places Bristol ESPNers pass the
time. Retrieved: October 17, 2013 from http://frontrow.espn.go.com/2013/05/the-
lineup-top-10-places-bristol-espners-pass-the-time/.
APPENDIX A
34. 34
Goods
ESPN
ESPN2
ESPNNEWS
ESPN Classic
ESPN U
ESPN.com
o ESPNChicago.com, ESPNNewYork.com, ESPNBoston.com,
ESPNDallas.com, ESPNLosAngeles.com
ESPN3
ESPN Mobile Properties
ESPN Regional Television
The ESPN Radio Network
Mike and Mike in the Morning
SportsNation
Sunday NFL Countdown
Outside the Lines
Monday Night Countdown
E:60
College Gameday (Football)
College Gameday (Basketball)
SportsCenter
Around the Horn
Baseball Tonight
Monday Night Football
WBNA Tuesday
Wimbledon
Wednesday Night Fights
Wednesday Night Baseball
APPENDIX B
35. 35
Company Headquarters
APPENDIX C
ESPN Cafe The Make-Up Room
The Game Room Starbucks
ESPN The Store Seasons At North Campus
Building Lounges ESPN Wellness Center
36. 36
ESPN Executives
Sean Bratches
o Executive Vice President, Sales and Marketing
Christine Driessen
o Executive Vice President and Chief Financial Officer
Ed Durso
o Executive Vice President, Administration
Charles Pagano
o Executive Vice President and Chief Technology Officer
Norby Williamson
o Executive Vice President, Programming
Russell Wolff
o Executive Vice President and Managing Director, ESPN International
John Wildhack
o Executive Vice President, Production
John Kosner
o Executive Vice President, Digital and Print Media
John A. Walsh
o Executive Vice President and Executive Editor
APPENDIX D
38. 38
To serve sports fans wherever sports are watched, listened to, discussed, debated, read
about or played.
ESPN Diversity Mission Statement
ESPN diversity mission statement: ESPN will embrace diversity to better serve our fans
and customers. We strive to attract and retain talented and diverse people, and to create
an inclusive environment where all employees can contribute to their fullest potential. In
a changing world in which we endeavor to grow our business, it is imperative that
ESPN’s workforce reflects the diversity of cultures, thinking and perspectives of its
current and prospective fans and customers. Tapping the skills, ideas and perspectives of
a diverse workforce will make us a better and more profitable company, and is key to
sustaining our continued growth.
Appendix F
Objectives
39. 39
To remain the dominant sports entertainment channel on cable television each
year, by continuing to provide over twenty-five sports programs to 115 million
viewers per month
To box out newcomer sports channels (Fox Sports 1 & NBC Sports Network) by
acquiring broadcasting rights to major American sports, specifically football
To continue to control one of the countries most watched events.
To further their viewership share of football, the new ESPN deal with the NFL
opens the door to the possibility of ESPN carrying postseason NFL games, further
increasing the amount of viewership ESPN would get.
To continue to increase profits, ESPN will exploit their stronghold on major
sporting event broadcast rights allowing them to raise the price of their cable
charges.
To further expand the ESPN brand beyond the United States, ESPN will focus
less on Europe and instead focus its efforts on Latin America. This will allow
ESPN to reach millions of sports fans from Mexico to South America. This move
will occur after ESPN exited Europe due to an inability to secure English Premier
League broadcasting rights.
