World Wrestling Entertainment

World Wrestling Entertainment Case Solution

From my point of view, there are at least three strategic problems which are not covered by World Wrestling Entertainment. First of all, the football league known as XFL, shortly after WWE goes public, had a lot of problems. The XFL was proposed by Vince McMahon who tried to make the XFL a faster-paced, more fan-friendly form of the football than the NFL's brand. Although XFL had good attention and television ratings, it fell just after one season resulting in a 57 million loss for WWE. Second, The WWE was original called WWF which was World Wrestling Federation. In 2002, World Wrestling Federation was hit by a ruling by a British court that their original WWF acronym belonged to the World Wildlife Fund, and that pushed World Wrestling Federation to experience a major branding transition. As a result, World Wrestling Federation had to change its well-known name and logo from WWF to WWE. This kind of change was very costly because it had to at least spend much money on advertising in order to make the world know this change. Last but not least, during 2001 and 2005, the WWE did not keep creating new superstars to attract audience which leads to viewers running away. Moreover, its rating went down because its current superstars tried to move to movies and others had health issues. It is a real hard time for WWE because it lost a lot of fans who could increase its revenue by paying tickets.

It is much reasonable to analyze the competitive forces in their market from the point of five-forces. First of all, the threat of new entrants is always a big headache for current companies in given industry. However, the entry to wrestling industry is relative high because the WWE is dominating the wrestling industry leading to the comparative advantage for economies of scale. Moreover, the new entrants have to spend much money in finding good performers, cool locations and so on. That means new entrants have to...