Major League Baseball Business Model

1. Using Porter’s Five Forces Model, analyze MLBAM’s buyer power and supplier power. What could MLBAM do to increase customer loyalty?

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 create entry barriers thereby reducing the threat of new entrants and increased efficiencies while seeking a competitive advantage through cost leadership.

2. Which of Porter’s three generic strategies is MLBAM following?

Focused strategy – since it is the first to market it can charge a high cost for its service.

3. How can MLBAM use efficiency IT metrics and effectiveness IT metrics to improve its business?

MLBAM can use efficiency IT metrics to focus on its current technology. MLBAM could benchmark its existing applications to create baselines. It could then continuously monitor and measure against these benchmarks to ensure its IT applications are functioning correctly. This would be particularly important in the area of its downloaded videos and statistics to customers.

MLBAM could use effectiveness IT metrics to determine if its customers, suppliers, and even employees are satisfied with the applications. It could determine if the application is easy to use and if first-time customers are converting due to an ebusiness strategy.

4. Predict what might happen to MLBAM if it failed to secure its subscriber information and all personal information – including credit card numbers – was accidentally posted to an anonymous website.

MLBAM would be violating its customers’ trust and therefore risk losing their business. It would also be violating its fiduciary responsibility.

5. How could MLBAM use a customer relationship management system to improve revenue growth?...