MBA 705 Milestone Two Guidelines and Rubric
Overview: For the capstone assessment, you will create a business implementation plan and audiovisual presentation for the product, service, or idea you have
been developing throughout your MBA coursework.
In Milestone Two, you will submit an implementation plan, which is a clear and comprehensive plan for implementing and managing the concept from inception
to completion. Although the details of your plan will necessarily depend upon your concept, at a minimum, your plan should include the following critical
elements:
Critical Elements:
Physical and technological resources needed for the concept, including where these will come from and how they will be used to reduce cost or improve
operations. Be sure to discuss why one resource option is better than another where appropriate.
• A detailed implementation schedule covering what needs to be done, by when, and, tentatively, by whom. (Note that key personnel will be covered in
more depth in Milestone Three.) The schedule should identify the critical path to success and outline the dependencies between tasks.
• Project review processes and indicators of success to ensure that the project stays on target.
• An explanation of how intrapreneurship or entrepreneurship factor in to the implementation of your plan and how you will protect intangible assets,
such as intellectual property or brand.
Guidelines for Submission: Your draft must contain all of the elements listed above. It should be 5 to 8 pages in length (excluding the title page, references, and
appendices) using 12-point Times New Roman font, with one-inch margins. You may include summary pictures, charts, graphs, or other explanatory diagrams as
needed to successfully explain the concept and implementation, but should use appendices for detailed supporting documentation. Your paper should follow
APA guidelines. You must include at least 5 scholarly sources. Cite your sources within the text of your paper and on the reference page.
Critical Elements
Main Elements
Critical Thinking
Physical and Technological
Resources
Implementation Schedule
Project Review Processes
Proficient (100%)
Includes most of the main elements
Provides logical conclusions and defends with
examples
Provides physical and technological resources
and includes a discussion of the source of the
resources and why certain options are better
than others
Provides an implementation schedule and the
critical path to project success, including
dependencies among tasks
Provides a project review process and shows
how the process will keep the project on
track, including indicators of success
Not Proficient (0%)
Does not include any of the main elements
Does not provide logical conclusions
Value
15
15
Does not provide physical and technological
resources
15
Does not provide an implementation
schedule
15
Does not provide a project review process
15
Intrapreneurship or
Entrepreneurship
Provides an explanation of how
intrapreneurship or entrepreneurship factor
into plan implementation and includes a
discussion of how to protect intangible assets
Articulation of Response
Submission does not have critical errors
related to citations, grammar, spelling, syntax,
or organization that prevent understanding of
ideas
Does not provide explanation of how
intrapreneurship or entrepreneurship factor
into plan implementation and does not
include a discussion of how to protect
intangible assets
Submission has critical errors related to
citations, grammar, spelling, syntax, or
organization that prevent understanding of
ideas
Total
15
10
100%
My business concept or product idea involves an Intrapreneurship opportunity for
ESPN. ESPN is a subsidiary of The Walt Disney Company and falls under Disney’s Media
Networks segment. ESPN has an over-the-top (OTT) streaming service called ESPN Plus
that allows you to watch various major sporting events and ESPN platform shows
through this app. With the changes in consumer consumption habits and competition,
ESPN had to change the way they were providing content for viewers.
This company is a global brand and because of their global recognition when the
company produces a new product, sports fans who are also fans of the brand want to
be involved.
The product idea I have involves a collaboration with the already established direct-toconsumer app ESPN Plus. The ESPN Plus Data Tracker will act as a one-stop-shop of
information gathering for sports content. The product would work as a component within
the ESPN Plus app. It will be a tool for the public sector, news and information
environment, and PR and Communications industries to streamline content gathered
from various social media outlets and funnel it into one main source.
My concept will be something unique to the avid sports fan because it will allow them to
follow a particular team or player and know their every social move without the hassle of
flipping through various social media channels, the team’s website and other online
outlets all in one setting and on one platform.
Because the idea will be incorporated with an already established ESPN component, my
concept is an Intrapreneurship for the company. There are several social media apps
however with ESPN Plus Data Tracker it allows users to streamline their information
without getting all of the other outside noise and focus solely on what is important to the
user.
For the News and Information sector, which includes sports and other media outlets,
Public Relations and Communications firms, ESPN Plus Data Tracker will allow users to
discover significant breaking news before it is made public knowledge, which is ideal in an
industry where networks and other media outlets want to be the first to break the news.
In the current marketplace social media outlets, including Facebook, Twitter, Instagram,
and Snapchat are oversaturated with news and information, which can be overwhelming
(Brown, C. 2018). In order to get information from a variety of sources you have to follow
or friend that component. The difference between these outlets and ESPN Plus Data
Tracker is that you do not have to befriend or follow anyone if you do not choose to. For
example if you decide to have your preferences focus on the SEC sector of College
Football, or if you have a Fantasy football team and need to know any news and
information that may help you, you can customize your search options to get only that
information. This would include information from small news outlets to bigger ones, to
football player tweets, Facebook and IG posts, to school tweets, Facebook and IG posts.
Once you select your preferences, you will only get information pertaining to those
preferences.
References:
Brown, C. (2018) Social Media is Evolving into a Marketplace
Retrieved from: https://www.socpub.com/articles/social-media-evolving-marketplace16051
Tredgold, G. (2018) 4 Reasons Why You Need to Focus on Innovation
Retrieved from: https://www.inc.com/gordon-tredgold/4-reasons-why-you-need-tofocus-on-innovation.html
RUNNING HEAD: FINAL PROJECT SUBMISSION
Comprehensive Business Plan
9-1 Final Project – Week 9
Paushawna DeCordova-Boyd
Marketing and Strategy MBA-560-X1363
Professor Jonathan Chernes
December 2, 2018
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TABLE OF CONTENTS
ABSTRACT.................................................................................................................................... 3
SECTION I: EXECUTIVE SUMMARY ....................................................................................... 4
SECTION II: CONTEXT ............................................................................................................... 7
SECTION III: NEED ...................................................................................................................... 9
SECTION IV: STRENGTHS AND WEAKNESSES .................................................................. 12
SECTION V: CORE COMPETENCIES ...................................................................................... 23
SECTION VI: PRICING .............................................................................................................. 26
SECTION VII: REFINEMENT .................................................................................................... 33
CONCLUSION ............................................................................................................................. 39
REFERENCES ............................................................................................................................. 41
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ABSTRACT
There are several ways to measure the success of a new product or service. Some may
say the defining goal that the product is attempting to achieve is more important than the product
itself. (YML, 2018).
Brand equity reflects on the value of the brand name and logo as promotional tools for
attracting future buyers and building market share and profitability. A customer’s ultimate
satisfaction depends on whether the product actually lives up to its expectations and delivers the
anticipated results. (Mullins, J & Walker, O. 2013).
The media industry has a very competitive landscape, and in order for the ESPN+ Data
Tracker add-on service to successfully compete in an ever-evolving industry, will depend on
ESPN’s capacity to provide high-quality content that is relevant to the viewer. The company will
also have to adapt to technological developments, and respond to consumer trends.
There also has to be a strategy put in place to differentiate the product from the
competition in order to set itself apart. These strategies include setting objectives and
performance standards, specifying feedback, obtaining data, then evaluating that data, and
implementing a plan of action to address what may need to be remedied. (Mullins, J & Walker,
O. 2011).
This business plan will examine how the ESPN+ app can be even better with data
tracking and delivering real time social media alerts from athletes, and fan reactions for a
sport or a story leading up to or after an event. It will examine how this app can be marketed,
priced, and how it differentiates itself from the competition. It will also focus on the consumer
target demographic for this product along with its chosen target market; while diving into how
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the fixed and variable costs fit in with ESPN’s short and long-term goals and determine the
best pricing strategy.
A SWOT assessment and ethics factors have an impact on the Data Tracker add-on
service through examining consumer trends and explaining how it influences the branding
success of the device concept. The plan will also touch upon ESPN’s core competencies, and
how this add-on service factors into those proficiencies.
There are various ways to evaluate the success of the ESPN+ Data Tracker app such as,
suggesting regular processes that extend across ESPN business segments. The business plan will
touch on how to effectively receive feedback and collect relevant information on the corrections
needed to improve the app using feedback loops. Lastly, it will identify and integrate other
factors that may have an impact on the implementation of the app through setting objectives and
performance standards.
SECTION I: EXECUTIVE SUMMARY
The Entertainment Sports Programming Network otherwise known as ESPN, a
subsidiary of the Walt Disney Company has solidified its brand by becoming the most
important brand to fans as it relates to sports. Considering all the sources people use for
sports, 51% say ESPN is the most important to their enjoyment. In an average minute, 2
million people are consuming ESPN media globally. (ESPN Brand Tracker, 2017).
ESPN’s newest product ESPN+ caters to the viewing demand of these sports fans who
would normally flip on the television to watch ESPN, but instead have just as much access to
what they want to see through the mobile app and TV streaming service.
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ESPN+ is the first direct-to-consumer service offering from Disney Direct-to-Consumer
and International, which offers subscription-video-on-demand viewing. It is powered by
BAMTECH, a unit of Disney Direct-to-Consumer and International. (Adler, K. 2018).
Sports fans and consumers want the ability to stream on-demand content through various
platforms in order to meet their consumption needs. They want immediate highlights at an
extremely quick turnaround without the high cost. As stated by ESPN President Jimmy Pitaro,
ESPN was built on a belief in innovation and the powerful connection between sports
and a remarkable array of fans. That same belief is at the heart of ESPN+. It gives fans access to
thousands of live games, as well as world-class original programs and on-demand sports content,
all at a great price. (Adler, K. 2018).
ESPN+ is an add-on within the redesigned ESPN app, and not a standalone service. It
features roughly 10,000 sporting events each year; and has live content from MLB, NHL, MLS,
collegiate sports and tennis’ Grand Slam events for $4.99 per month. (Statt, N. 2018). The app’s
concept is undeniably a great idea. However, there are opportunities to make this app an even
greater resource for sports fans everywhere.
ESPN’s website and digital platforms compete with other websites and entertainment
platforms in their respective categories. ESPN is also competing with other networks for the
acquisition of sports and other sports programming. The market for programming is competitive,
especially for live sports programming. (MarketLine Advantage, 2018). Moreover, its internet
web sites and digital products compete with other web sites and entertainment products in their
respective categories. (MarketLine Advantage, 2018).
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The increasing networks on both television and online intensifies the competition for
advertising revenue in both areas. These industries are constantly competing for a slice of each
other’s market shares.
ESPN’s businesses face online threats from a variety of direct competitors such as Sports
Illustrated, Bleacher Report, CBS Sports, Yahoo Sports and NBC Sports. The ESPN+ app is also
competing with other direct-to-consumer services such as Amazon Prime, which now streams
Thursday NFL Football live, Facebook, which now streams MLB games live, and Twitter.
The entertainment and media industry is subject to frequent changes due to the rapidly
changing customer preferences. This increases the competition in the industry. Failure to harness
competitive advantages, and tackle the growing competition could affect the company’s financial
and operational performance. (Gale Business Insights: Global, 2017).
One question posed is how does a company who put so much of its focus on linear
television compete with the ever growing online streaming and social media platforms? The
answer is they have to become even more innovative. This is through creating easily accessible
viewable and interactive content through social media and mobile apps.
The ESPN+ data tracking add-on concept can have a greater impact for ESPN+ by telling
the full story through tracking sports content and reactionary content in real time.
The concept of ESPN+ Data Tracker is to be an add-on service for ESPN+. ESPN+
Data Tracker will allow all sports fans and especially avid sports fans, who make up 43% of
the sports fan base, totaling 109 million people, to track their favorite sports team s, and
players while following any storyline pertaining to their favorites through the app using real time alerting.
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The user will be able to customize their search by continent, region, country,
province/state, or create a custom search option. They will also be able to categorize the
content they receive by priority levels, which include global importance, national importance,
and local importance. Users have the option to receive high alerts, which include high level
breaking news stories, to momentum stories that are more fun and less newsworthy.
The app will act similarly to a social media account for sports content. It is perfect for
fans who follow a particular team or player and want to know their every social move without
the hassle of flipping through various social media sites.
SECTION II: CONTEXT
Defining Features
ESPN’s mission is to serve sports fans wherever sports are watched, listened to,
discussed, debated, read about or played. (Adler, K. 2018). Its tagline is “The World Wide
Leader in Sports.” ESPN+ is gearing up to become the “World Wide Leader” in streaming sports
content.
Sports fans already have the opportunity to personalize the ESPN+ app to meet their sport
preferences. If a viewer is a Los Angeles Lakers fan, they can personalize the app to generate
Lakers content first, before viewing any other sport related content. With the concept of ESPN+
Data Tracker, which will be an add-on to ESPN+, consumers are able to get immediate
highlights in real time, and fan reaction to that highlight as its taking place. For example, that
Lakers fan who personalized their app would also have the opportunity to customize whether or
not to get live tweet alerts from players, and other sources regarding any Lakers news and
information. The app’s customization will allow that fan to get the latest news in three categories
regarding their team or player, by global importance, national importance, and local importance.
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The ESPN+ Data Tracker feature will be marketed internally by giving all ESPN
employees the opportunity to download the app with a free one-year subscription. This allows
them to experience what the app is capable of and spread the word to family and friends.
ESPN can continue to utilize all platforms to promote the app and its feature this includes
cable TV channels, ESPN Magazine, ESPN Radio/Audio, the current ESPN mobile app, and
social media. ESPN has the largest digital audience of any sports publisher with over 67 million
and counting unique visitors on their social media platforms. (Willens, M. 2018). Subscription
offers can be sent to site visitors who frequent the site and mobile app users. The company has a
ticker called the ESPN Bottom Line during all broadcasts and can promote ESPN+ Data Tracker
regularly on its television platforms.
Brand Fit & Effectiveness
A brand is only as good as their customers perceive them to be, and a brand’s value
depends on how much value customers think the brand provides for them. Almost all Americans
say they are aware of ESPN or one of its sub-brands. This totals over 268 million people.
(ESPN Brand Tracker, 2017).
ESPN has dominated the sports television industry after it became the world’s first allsports, satellite-delivered cable television network. ESPN’s most unique feature includes its
flagship program the daily live SportsCenter, which provides viewers with the most up-to-date
informational sports service available covering scores, news, previews, features and game
highlights. (Adler, K. 2018).
The idea behind branding is to make sure sales and success for that product is easily
identifiable to the consumer. The first notion that comes to mind when thinking of ESPN and
its flagship show SportsCenter is the end tag…Da Da Da… Da Da Da. This makes ESPN
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identifiable to its customers. The company’s brand has not only distinguished itself in the
sports media market, the ESPN’s brand has solidified itself so much so that it has appeared in
several movies and TV shows as a reference to anything sport related.
An effective brand not only has great customer service and social responsibility, the
product has to work well and be of high quality. (Simpson, J. 2017). ESPN has mad e its mark
as the World Wide Leader in Sports with brand effectiveness and creating an emotional
relationship with the customer along with quality programming that touches all sports fans in
some way. That is what has sustained its longevity in an ever-changing, ever-growing
competitive market.
SECTION III: NEED
Basic Demographic
On average, Americans spend one-fifth of their day on leisure activities with three hours a
day spent watching television. In 2017, the number of TV viewers who typically watch sports on
TV amounted to over 104 million viewers. (Statista, 2017).
According to a Mintel marketing report regarding sports fans, 85% of US adults follow at
least one sport, and an avid sports fan will never miss a game/event for their sport team. About
43% are avid fans, which amounts to 109 million people. 21% are casual fans, and 21%
occasional fans. The avid sports fan is represented to be men under the age 45, who are married
with children, middle-income earners with a mid-range household income of $50-99.9K,
Hispanic, urban dwellers, and employed. Adults with children under 18 are more likely than a
non-parent to be an avid sports fan. This is primarily driven by the dad’s passion for sports as it
satisfies both familial and social desires. A younger adult avid sports fans’ interest in sports is
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hugely in part due to the incorporation of technology in sports, making viewing more accessible,
as well as the social components. (Mintel Academic, 2017).
Avid fans are more likely to travel and pay extra to watch sports. They are more likely than
general sports fans to have a cable subscription primarily to watch sports and spend more time
and money to support their team. Avid fans are also more prone to record their sporting event in
order to avoid commercials. (Mintel Academic, 2017).
Other Characteristics
On a game day if you were to open Facebook or Twitter you will see threads full of
passionate sports enthusiasts discussing the game, players, and their excitement or
disappointment in their team. As of 2017, 61% of sports viewers follow sports accounts and 80%
interact on social media, which has become the second screen for the sports industry. (Karr, D.
2017). Sports events and social media go hand in hand, especially in an era where every team,
league, or sports association has at least one social media account and these profiles have
millions of fan followers.
Fulfilling a Sports Fan’s Needs
Even with pay TV cable subscriptions drastically on the decline due to consumers cutting
the cord, and the amount of options and improvements to give fans wider access to games/events
on various streaming services and apps, 65% of sports fans still prefer to watch games at home
on TV in real-time. The viewing preferences, behaviors, and attitudes differ by the specific
sports that a fan follows. (Mintel Academic, 2017).
Sports is still competing with various activities for the leisure time of consumers. Avid sports
fans who make up the majority agree that some sports/games last too long, and may turn their
attention away from the game. While watching live sports, these fans often engage in other
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activities at the same time such as socializing, using their smartphones to check email, scroll
through social media and online sites, or cooking.
The demand for instant access and instant gratification has morphed into an expectation.
Consumers want scores and highlights almost immediately. With the vast amount of sport apps
and media channels users can get decision fatigue. ESPN+ Data Tracker capitalizes on this trend
by giving users an increasingly personalized one-stop digital destination for all platforms ESPN
has to offer. Not only will the app provide transactional and subscription access to live events, it
gives the customer the ability to get instant fan, team and player reactions across the globe.
The average of 7 out of 10 avid and sports fans agree that attending sporting events can
be too expensive. Roughly, 71% of the avid fan says attending a sporting event is too expensive.
While 67% are more interested in sports during playoffs. In addition, 40% say due to advances in
technology they are less likely to attend a sports game and instead watch from a device, social
media, or streaming app. (Mintel Academic, 2017).
The current financial situation of the targeted consumer will likely have a strong impact
on their ability to attend the event. Another impacting factor is the sport league schedule, with
most sports fans and avid fans saying they are more interested in sports during the playoffs. With
access to games from the comfort of their home, social media, and apps, fans do not feel the need
to pay the cost to attend a live game. (Mintel Academic, 2017).
Sports fandom is driven by the fan’s passion and commitment to watching a specific
sport or league. ESPN+ Data Tracker is ideal for sports fans in this target market because it
caters to their demands and needs. The price point is also reasonable for the consumer
demographic.
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SECTION IV: STRENGTHS AND WEAKNESSES
Strengths
Distribution Network, Brand Portfolio
ESPN has built a solid and reliable distribution network that reaches a majority of its
potential market. (Fern Fort University, 2017). The company boasts a wide distribution with a
presence in more than 200 countries globally and having the sports rights to more than 130
League and sports globally. (Bhasin, H. 2018).
ESPN has invested a lot of time in building a strong brand portfolio over the years, which
is extremely useful when the company wants to expand into new product categories and test new
markets. The company has made successes of new markets due to its brand, which has allotted
them to build a new revenue stream and diversify within the economic cycle risk in the market it
operates. (Bhasin, H. C. 2018). Primary business entities include television networks, audio,
digital, publishing, event management, multiplatform businesses, location-based businesses, and
corporate citizenship. (ESPN Media Zone, 2015).
Strong Parent Company, Free Cash Flow
ESPN has a strong parent company, The Walt Disney Company. Disney is one of the
leading entertainment conglomerates in the world. One of the core operations Media Networks,
contributed to roughly 42.6% of the company’s total revenue in fiscal year 2016. Its cable
networks derive the majority of their revenue from affiliate fees and ad sales. (Gale Business
Insights: Global, 2017).
With a strong parent company comes a solid free cash flow. Free cash flow (FCF) is an
assessment of the amount of cash a company generates after accounting for all capital
expenditures. (Investopedia, 2018). This cash flow gives the company the advantage to take
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risks when expanding new product segment categories and testing new markets. For fiscal
year 2017, Disney’s FCF was valued at 9,571 (million). This provides resources to allow ESPN
to expand on new projects. It also helps in product innovation and the development of new
products. Free cash flow also allocates ESPN to invest its resources in the training and
development of their employees through learning programs and workshops. This results in a
highly skilled workforce that is motivated to achieve more. (Fern Fort University, 2017).
Skilled People
Necessary for the implementation of this product are individuals who know and
understand mobile platforms and can maintain editorial standards for the app, and edit and
publish video content. Content personalization product managers; who would be responsible for
the editorial content, engineering and design of the personalized apps. ESPN has a highly skilled
workforce and this has come through recruiting the right people for those positions, along
with training others through learning workshops and programs.
Individuals who can translate strategy and product vision into product deliverables are
necessary to make the ESPN+ Data Tracker opportunity happen. ESPN has a powerful strategy
for gaining competitive advantage by building a company with talented, well-motivated people
at every level. These talented people are constantly thinking of new products and services and
develop effective work processes to aide in these ideas coming into fruition.
Competitive Advantage
The ESPN App provides a 3 in 1 experience for the consumer. It has the free
component to include news, highlights, stats and analysis. The second component contains the
TV everywhere authenticated layer, which allows consumers who currently subscribe to the
ESPN cable channel to have access to ESPN live television when signing into the app through
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their cable subscriber. The third component is ESPN+, the direct-to-consumer subscription
service offering thousands of live events, original content, and an unmatched library of ondemand programming. (ESPN Media Zone, 2018).
Several streaming services directly compete with the ESPN App, however the
company’s brand is extremely popular; and considering all the sources people use for sports,
51% say ESPN is the most important to their enjoyment. People trust the ESPN brand, which
is a benefit to this new product the ESPN+ Data Tracker, because it would automatically gain
the people’s trust.
ESPN+ is already making its mark as one of the top over-the-top (OTT) direct-toconsumers sports apps. Consumers will be more susceptible to jump on board because of the
name and brand alone. The app today is also quickly becoming the destination for top sports
stars and top athletes. This also gives ESPN an advantage when launching the Data Tracker
add-on as it relates to athletes’ social media platforms.
New Launches
ESPN could capitalize on its new product launches to drive revenues. In March 2016, the
company began offering live and on-demand streaming in the US through ESPN Cricket Pass, a
subscription streaming service accessible on computers, smartphones, tablets and connected
devices through a dedicated website and app. (Gale Business Insights, 2017).
ESPN dot com launched a new sports vertical covering the world of competitive gaming,
which falls under the esports category. This launch was a part of the company’s initiative to
capitalize on increasing requirements of a growing audience. (Gale Business Insights, 2017).
After the successful launch of ESPN+, ESPN’s parent company Disney is set to launch
its own direct to consumer services in 2019. This will be a straight-to-consumer streaming
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service designed for its animated films and Marvel and Star Wars properties. This service is
gearing to launch in 2019, and the company has moved to end its licensing deal with Netflix as a
result. (Statt, N. 2018).
With these new launches is an opportunity to create a level playing field for all players in
the online streaming industry. This will give ESPN a great opportunity to drive home its
advantage in new technology.
Weakness
Distinguishing Features
The ESPN App is user friendly when dealing with highlights, stats and analysis, and
live games. It does not have the level of fan engagement that will bring this app to the next
level. With fan engagement at an all-time high, fans want to feel like they are a part of the team
or a friend to their favorite player.
ESPN and its talent pool has the opportunity to engage with fans while attending on the
road events such as College GameDay and SportsCenter on the Road. The current setback with
the ESPN Mobile App is attempting to engage fans in the same manner as they would on the
road. The ESPN+ Data Tracker would have to find a way to allow fans to engage, which is
responding to athletes’ social media posts without disrupting the social media sites attached to
the app. The Data Tracker app would be for viewing and reading purposes only as to keep track
of the teams and players’ social media activities, while also watching live sports or highlights on
the app.
Another obstacle is social media services that are branded around a single type of
content are more likely to survive, but may fail to garner as many active group members a s
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their counterparts. With ESPN+ Data Tracker catering to only sport specific content it may
not garner as much attention as other OTT streaming services. (Mintel Academic, 2018).
Increased Credit Risk & Substantial Debt
ESPN’s parent company the Walt Disney Company has a substantial amount of debt that
may affect its ability to borrow and repay money. At the end of the 2016 Fiscal Year, Disney
recorded a 16.4% increase in debt to $20.2 billion. (Business Insights: Global, 2017). The
decrease in income can affect the operations of the company. The company’s accounts
receivables increased by 11.4% to $8.3 billion in 2016, from $7.4 billion in 2015, which
indicated an increase in sales. (Business Insights: Global, 2017).
ESPN’s financial planning is not very efficient, which is mainly due in part to its parent
company. The current asset ratio and liquid asset ratios suggest that the company can use the
cash a bit more efficiently than how it is currently being used. (Fern Fort University, 2018).
Social Media Pushback
Social media sites generate a ton of revenue through ad sales, which have increased
from $2.9 billion to $22.3 billion from 2012-17. This is driven by the growth in its audience
size. Sales are expected to double to $45 billion by 2022, with brand marketers increasingly
viewing these ad sales as important to social media owned content. (Mintel Academic, 2018).
The app is generating content from other social media sites to include Twitter,
Facebook, and Instagram, which can cause a conflict with those sites, especially if it is
affecting revenue through ad sales. There will have to be licensing agreements established in
order to give the company permission to allow their content to appear on a competitor’s site.
Responsiveness
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Though ESPN has a strong cash flow, the company needs to invest in more
technology. The investment in technologies is not on par with the company’s vision. With the
rapid innovation, involving advances in technologies, ESPN and its parent company The Walt
Disney Company are more reactive rather than proactive and aggressive in their approach.
(Fern Fort University, 2018)
Even with the emergence of several over OTTs within the past few years, and cable
customers cutting the cord, it still took ESPN losing millions of cable subscribers to begin
thinking about creating their own streaming service. Rapid innovation involving advanced
technologies is limited to ESPN’s operations. Therefore, ESPN+ Data Tracker may take some
time to come into fruition.
Opportunities
Positive Outlook on Media and Entertainment Industry
According to the International Trade Administration and the US Department of
Commerce, the US media and entertainment (M&E) industry is the largest M&E market across
the world and third largest global industry. The market is estimated to reach $771 billion by
2019, compared to $632 billion profits in 2015. (Gale Business Insights: Global, 2017).
ESPN’s parent company Walt Disney has the opportunity to generate high revenue due to
the growing entertainment media industry. The company already has a significant market
presence in the media and entertainment industry. (Gale Business Insights: Global, 2017).
There are billions of sports fans worldwide. ESPN’s brand is both widely popular and
deeply embedded in the daily lives of sports fans. ESPN’s total average audience rose to as many
as 208 million Americans in a month in 2017. ESPN content has reached most Americans at an
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estimated 224.8 million people in the U.S. across TV and digital platforms in 2017, representing
71% of the U.S. persons 13+. (comScore Xmedia, 2017).
ESPN’s digital platform is the world’s leading sports digital platform, averaging 117
million users a month, accounting for 17% of all sports digital usage. (ESPN Media Zone, 2017).
Moreover, Disney has been aggressive in making ESPN an anchor tenant of emerging digital
MVPD platforms, with carriers such as Sling TV, DirecTV Now, PlayStation Vue, YouTube TV,
and an upcoming Hulu service. (Littleton, C. Variety, 2017). ESPN+ is currently the number one
sports app in the U.S. and its release was under one year ago. It is now available on PlayStation 4
and Xbox One. (Ota, K. 2018).
Direct-To-Consumer Changing the Viewing Landscape
With the rise of mobile, social and cloud technologies, comes the rise of consumer
expectations for the products and services. There is a demand for a seamless experience and a
competitive advantage, which attracts and retains those consumers. (Hopewood, C. 2018).
Disney CEO Bob Iger stated “The acquisition and launch of the direct-to-consumer
service marks an entirely new growth strategy for the Company, one that takes advantage of the
incredible opportunity that changing technology provides us to leverage the strength of our great
brands.” (Lafayette, J. 2017).
With the vast amount of cable subscribers cord cutting, or unbundling cable TV
packages, it is predicted that all major TV networks will produce OTT-powered direct-toconsumer services by 2022. (Baumgartner, J. 2018). With major media companies reacting to the
changes in TV viewing habits, it is forecasted that direct-to-consumer subscriptions will reach 50
million by 2022. (Baumgartner, J. 2018).
New Customers from Online Channels
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Over the past few years, ESPN has taken steps to invest in the online platform, which
opened new sales channels for the company. ESPN is already taking advantage of leveraging this
opportunity by gaining an understanding of what the customer wants using data analytics. (Fern
Fort University, 2017). This is especially important when launching ESPN Data Tracker. ESPN
can use data and analytics to gain an understanding of specific target demographics, and cater to
their needs.
Threats
With the advent of technology and the rise of online platforms, it has become tough for
ESPN to sustain in the market where a consumer can watch anything live or at any suitable time
at their convenience. (Bhasin, H. 2018). The era of instantaneous and readily available news and
sports highlights have taken a toll on ESPN’s traditional role as the Worldwide Leader in Sports.
According to Disney CEO Bob Iger, the challenge is adjusting to delivery systems accordingly.
He also acknowledged that the growth in the number of over-the-top media subscribers has not
made up for the loss the company has seen in expanded basic cable. (Littleton, C. 2017).
Over the next five years, the online streaming industry will continue to dominate by
large, integrated players, and by small independent publishers. As major players become more
dominant, it will be easier for them to maintain their competitive edge because of their reputation
and brand. (IBIS World, 2017).
Consumer trends
The demand for live sports television is still at an all-time high. The way consumers
choose to view these programs is what has changed over time.
According to a Mintel marketing report regarding sports fans, 85% of US adults follow at
least one sport, and an avid sports fan will never miss a game/event for their sport team. Given
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the amount of options and improvements to give fans wider access to games/events on various
streaming services and apps, fans still prefer to watch at home on TV in real-time.
Due to these findings, ESPN continues to pour money into buying the rights to various
leagues to include the NFL, which is still America’s sport of choice. The company pays $1.9
billion a year for its Monday Night Football package, and the NBA, which they are paying
$1.4 billion a year. (Jackson, E. 2017).
Because of the decline in overall television viewership, ESPN has gravitated toward
generating ad sales on platforms where the audience is now viewing its content. This includes
social media platforms such as Snapchat, Twitter and Facebook. Revenue from digital and
mobile advertising continues to grow at the expense of traditional print and broadcast
advertising.
A Mintel social media report states that in 2017, 76% of iGens, (the first generation to
spend their entire adolescence in the age of the smartphone), use social platforms to watch videos
and SnapChat is the platform of choice. Snapchat has made a push to create more TV-style
videos and has secured deals with 13 media partners. As an example of the power of social
media, 70% of SnapChat viewers that watch ESPN’s flagship show SportsCenter on Snapchat
does not watch the show on linear television.
Social media is not poised to carry the singular weight held by broadcast alone, and
about a fifth of all social media users see its service as their primary source of entertainment
or news. 22% of adults ages 18+ use social media as their main source of entertainment, while
twenty percent use social media as their main source of news. (Mintel Academic, 2018).
This puts ESPN+ Data Tracker in the perfect position to cater to the sports fan
demographic who is engaged in social media, but who also want sports entertainment and
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news, provided through the ESPN App. The Data Tracker turns ESPN+ into the one stop shop
for all sports content. The consumer is not only getting sports news, and watching live sports,
they are also getting real time data and reactions through social media platforms.
Ethics
ESPN revised its social media guidelines after controversies surrounded one former ESPN
SportsCenter anchor who made comments on social media regarding the current president and
NFL team owners, and suggested a boycott of advertisers for a specific team. This was after the
current president criticized the NFL and ESPN regarding NFL players taking the knee during the
National Anthem in protest against police brutality.
In response to these incidents and the controversies they reflected, ESPN revised their social
media guidelines for its employees. In the specific guidelines, it states to think before you tweet,
post or otherwise engage on social platforms. At all times an ESPN employee is representing the
company, and social sites offer the equivalent of a microphone.
As for political and social issues, the guidelines state that the audiences should be confident
that political pressures or personal agendas do not influence their original reporting of news. The
company should continue to emphasize that they are about sports and not a political
organization. (ESPN Front Row, 2017).
ESPN’s former president John Skipper said the guidelines, that were first issued in 2011,
were created under very different circumstances. When the guidelines were released, it explained
how to handle breaking news and interactions with consumers and colleagues on social media,
rather than the political context of posts. Political and social issues are at times unavoidable as it
relates to sports, and social media, and that has created some challenges for ESPN and forced
them to update their social media policy. (Brady, J. 2017).
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Data shows that fans tune into ESPN for an escape from the realities of politics and serious
world news. Every time ESPN leans into political commentary, they are turning fans away.
Therefore staying far away from politics will help the brand.
How Factors Affect Branding and Operations
A corporate strategy encompasses goal setting to reach long-term and big picture objectives.
The primary focus of a corporate strategy is profitability. (Ashe-Edmunds, S. 2018). ESPN’s
corporate mission is to serve sports fans wherever sports are watched, listened to, discussed,
debated, read about or played.
In reference to ESPN+ Data Tracker, ESPN has to create and capture value in a specific
product market by focusing on competitive strategies. Management has to understand the
product’s competitor analysis; they also have to understand the risks involved with the product
development.
The company has specific tactics to execute each of these strategies, one of which included
buying other businesses such as BAMTECH to create economies of scale and accessing new
technology. BAMTECH is a streaming Media Company that ESPN’s parent company The Walt
Disney Company purchased as technology subsidiary to merge with ESPN+. It focuses on
providing streaming video technology, especially for over-the-top (OTT) content services.
The company already has an established organizational structure that breaks down and focuses
on each market segment. This will also help to support the product. This structure will aide in
overseeing the amount of developers needed to create and maintain the product and determine
the overhead costs.
ESPN is well established with an omnipresence. Its promotional premise is “The
worldwide leader in Sports,” and with its popularity, it serves as a monopoly in the sports
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segment. (Bhasin, H. 2017). It already invests huge amounts of money in budget and promotion,
which is a tremendous leg up for promotion of the ESPN+ Data Tracker.
The role of marketing is to attract the right customers to the company or product through
research and promotion. (Ashe-Edmunds, S. 2018). ESPN has a top-notch marketing team whose
sole focus is on the marketing mix, the four p’s, product, price, place, and promotion.
The corporate and marketing strategies have to intersect in order for the app to be
successful. Management executives have to remain in constant communication with the
marketing team to ensure the product stays in tune with the company’s corporate mission. While
the marketing strategy has to center around communicating a clear-cut value proposition to
include having a strong product worth promoting, convenient distribution, and value pricing for
its target demographic. (Kokemuller, N. 2017).
SECTION V: CORE COMPETENCIES
ESPN’s core competencies consist of direct-to-consumer, audience expansion, quality
storytelling and programming, innovation, and diversity and inclusion.
Audience Expansion
In order for ESPN to grow as it is critical, the company has to expand its audience. At the
same time, they cannot fix one problem and create another. ESPN has to protect their core,
which is their brand meaning who they are and what has made ESPN what they are today.
One way in growing the audience is by attracting a younger audience. The company is
already doing so with various programming such as The Ocho, Esports, sports betting, and
podcasting, with almost 50% of the podcast audience ranging from age 18-34. Another way to
grow the younger audience is by giving back. Citizenship and social responsibility really
resonate with the younger generation.
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Attracting a female audience is also on the top of the list. Young girls are 50% most
likely to quit sports than boys. This is a problem because it is bad for business. Attracting a
Hispanic audience is also pertinent. 58% of Hispanics in the U.S. are under 34 years old. ESPN
is making ESPN Deportes is a priority.
ESPN+ Data Tracker has to touch on all of these priorities in order for the add-on to be
successful. ESPN’s overall connective tissue on how to grow an audience is showing care and
respect to its fans at all times.
Innovation
ESPN has a long list of being first through innovation; and will continue to deliver
against that legacy. This includes the ESPN App and ESPN+.
Other ways ESPN is being innovative is working with the NFL on a system entitled
NexGen Stats, to come up with a way to evaluate defensive linemen during the games.
As it relates to NBA games, the company is using a program called Second Spectrum,
which uses interactive applications and augmented video to deliver visually compelling content.
On the content and studio side, ESPN continuously comes up with new technology for
their shows. On the field, reporters and producers are doing live shots using their phones
through TVU apps.
Quality Storytelling & Programming
ESPN’s goal continues to be to maximize their unparalleled scale with storytelling that
stands out and makes a difference. The company is well equipped to go forward embracing these
themes. (ESPN Front Row, 2017).
ESPN understands that what they do matters on a much larger scale when it deals with
quality storytelling. That is why they thrive themselves in having the best investigative reporting
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and journalism. Their stories create memories for the fans. Their film strategy is to be bigger,
bolder, and better than the competition.
Sports equals the great unifier, especially during the divisive times the country is living in
today. ESPN has to be cognizant of its storytelling.
Diversity and Inclusion
ESPN perceives D & I as the pillar that defines the company. In an employee town hall
meeting, current ESPN President Jimmy Pitaro stated that the company is doing well on the
diversity side, however, the inclusion side needs work. This is in reference to the fact that many
of the women within the company who are in leadership positions feel like they are on the team,
but are on the bench and not playing the game.
The demographics of the population, meaning their respective ages and genders, greatly
influence whether or not a certain product may be marketed to them. With 78% of avid sports
fans 18+ being female, ESPN caters to the demographic with websites such as espnW. A site
whose mission is to serve women as fans and athletes by providing an engaging environment that
offers total access to female athletes and the sports they play. (espnW.com). ESPN+ Data
Tracker will have to find a way to incorporate that target demographic without them feeling
excluded. espnW currently lives across television, films, events, digital and social platforms, so it
could be an easy transition for ESPN+ Data Tracker to track the status of female athletes as well
as get game scores for various women’s matches.
All core competencies factor in as it relates to ESPN+ Data Tracker. This device will not
only attract the younger audience who appeals to social media, it will cater to the audience ESPN
is hoping to grow to love the brand. All while being able to tell a better story using real time data
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and social media updates from the teams and players. Lastly, it is on par with ESPN’s innovation
and being first to deliver everything a sports fan wants, while telling the story better than ever.
SECTION VI: PRICING
Type of Cost
Estimated Amount of Cost
Production costs
$ 8 billion
Sunk costs
$2 billion
Broadcasting
$18 billion
Production
$4 billion
Fixed Costs
Variable Costs
The fixed costs would be the costs that remain the same despite the varying quantity of
output (Jeanrenaud & Késenne, 2006). These remain the same in the short run, production costs
such as equipping studios, buying equipment, hiring presenters and experts, etc. Sunk costs are
another aspect of fixed costs. In the case of ESPN it would involve the infrastructure it has
invested in, the studios, the physical furniture, equipment, broadcasting satellites, the deals made
to buy broadcasting rights to MLB, NBA, NASCAR, etc. Unless these resources are sold off and
the cash recovered, this element of costs will remain fixed.
Variable costs change with changes in output, i.e. the number of subscribers or the
number of hours during which fresh programming is being broadcast. The channel has to rent the
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frequency and pay the cost of transmitting the signals to the cable company, hosting content on
the website or playing it on the ESPN+ app. The variable costs also change by the type of
program being broadcast, e.g. a pre-filmed and recorded show would costs less than a live
broadcast of a major sporting event that requires multiple cameras, commentators, professionals
working behind the scenes, etc. There is also an element of opportunity cost in variable costs as
the channel foregoes the revenue to be earned from another alternative, if it gives airtime to one
sport or game.
How much is the target market willing to pay?
Modern day sports fans face the challenge of figuring out which when and where to
watch their favorite sport and important games. Not every channel provides access to the major
games and tournaments for every sport. Fans have to locate the schedule and gain access to the
media outlet that will be streaming or airing the game live (Rodriguez, 2018). Streaming services
like ESPN+, Turner Sports and DAZN make the solution to this problem very simple. All the
viewer needs to do is pay for a monthly subscription and they can stream the game they want to
watch on any device; computer browser, television, tablet or smartphone. This is the first feature
that makes the service valuable for the target market.
Examine competitors’ pricing
Channel Name
ESPN+
Pricing
Reasons
Basic - $4.99/month
Lacks access to ESPN’s main
channels (ESPN and ESPN2),
$24.99 per month as an addonly access to additional
on for MLB.TV
“incremental live
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programming”, original TV
shows, films, exclusive studio
programs, and an on-demand
library (Tepper, 2018)
Free steaming sports channel
called CBS Sports HQ that
offers live anchored coverage
that draws on breaking news
analysis and previews.
Monthly - $4.99
CBS Sports
Holds the streaming rights to
Annual - $49 (12 months)
NCAA Basketball March
Madness and has several
short-term deals for PGA
Tour, SEC Football and the
NFL.
Streaming streaming service
with live boxing, mixed
$9.99/month
DAZN (Da-Zone)
martial arts and on-demand
programming, subsidiary of
UK-based global sports
media company Perform
Group, is already available in
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parts of Europe, Japan, and
Canada. It has yet to reach the
United States.
2 channels - $28.74/month
Sky Sports Mix, Sky Sports
3 channels - $33.97/month
Sky Sports
Premier League, Sky Sports
Main Event, Sky Sports
All 7 channels + Sky Sports
Football and Sky Sports
Main Event channel - for
Cricket
$36.58/month
Rights-holders with the NBA
stream thousands of live
games that fans can pay to
Free a pp to start/NBA
stream individually through
League Pass $7 Per Game.
Turner Sports
service or subscribe to a
Still figuring out pricing
sports league. Other
packages
programming include UEFA
Champions League and
NCAA Basketball games.
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Another attractive feature for which customers will be willing to pay more for is the
ability to watch sports live while getting live social media reactions. Audiences for television
content are increasingly splintering across various mediums and digital channels. However,
sports broadcasters can still ask for high payments from cable, digital and satellite companies
that air and stream sports games. Some channels charge over “$5 million for 30 seconds of ad
time in the Super Bowl” and rake in over “$1 billion on TV ads during March Madness”
(Rodriguez, 2018). ESPN+ will be aggregating sport content and streaming it live, which is an
attractive proposition for the target market.
Pricing Strategy
Several sports based direct-to-consumer products have emerged however none has the
same concept that incorporates real-time social media alerts and game highlights. Current
ESPN+ competitors include CBS Sports, Turner Sports, and DAZN. There are similarities and
difference between these apps. Games are also available to be watched on a wider range of
platforms, namely social media channels. (Mintel Academic, 2017).
Currently CBS Sports has a free steaming sports channel called CBS Sports HQ that
offers live anchored coverage that draws on breaking news analysis and previews. The company
holds the streaming rights to NCAA Basketball March Madness and has several short-term deals
for PGA Tour, SEC Football and the NFL. (Lemire, J. 2018).
Turner Sports who are rights-holders with the NBA has an app that will stream thousands
of live games that fans can pay to stream individually through service or subscribe to a sports
league such as NBA League Pass. The app will roll out as a free app to begin then they will
figure out pricing packages. Currently for NBA League Pass, the cost is $7 per game to stream.
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Other programming will include UEFA Champions League games and NCAA Basketball games.
(Rodriguez, A. 2018).
DAZN (pronounced da-zone) is a streaming service with live boxing, mixed martial arts
and on-demand programming for $9.99 per month. This app, which is a subsidiary of UK-based
global sports media company Perform Group, is already available in parts of Europe, Japan, and
Canada. It has yet to reach the United States. (Rossolillo, N. 2018).
ESPN+ has already differentiated itself from the competition first with its pricing and
access to a vast amount and variety of sports programming content. With the latest data tracking
add-on feature, the price point will remain the same.
With the ESPN+ pricing the service includes live MLB, NHL, NBA, and MLS games, as
well as college sports, PGA golf, Top Rank Boxing, and Grand Slam Tennis matches. If the user
is already subscribed to another premium sports streaming service such as MLB.tv or NHL.tv,
they can access out of market games through the app. (Wouk, K. 2018). The data tracker app will
be available on several devices.
Currently several social media sites send alerts and updates. One particular brand that is a
direct competitor to ESPN+ Data Tracker is a company called The Score. Though the site caters
more to the eSports fan, it is the first sports news site to ever be featured in the iTunes store and
now it is within striking distance to ESPN in terms of mobile traffic. It is a popular mobile
destination for live scores and breaking news from across the world. (Olenski, S. 2017).
ESPN+ Data Tracker will allow users curious about the service to check out a 7-day free
trial of the app before purchasing. The direct-to-consumer app is $4.99 per month or $50 per
year. The Data Tracker add-on will be incorporated with the app fee.
What pricing strategy is most appropriate and why?
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Economy pricing is used in situations where corporations want to minimize overheads
and then use the ability to have lower prices to attract customers towards them and away from
competitors. Using this strategy is not a very good idea, as lower pricing also has the unintended
connotation of being a lower quality or lower value product. Sports fans are an enthusiastic
market who are dedicated to the sports and teams they support. They will not mind paying a
higher price as long as they are guaranteed access to the content they desire. Economy pricing
will thus only harm the profitability of the add-on and not have a big impact on the number of
new customers signing up for the service.
Price skimming is best suited for products or services that are unique in the market
(temporarily) due to the lack of competition. The company uses its position as the only one
offering the service to reap high profits before it is forced to inevitably lower it when other firms
enter the market. This strategy is not useful or applicable in this scenario because there are
already other such offerings in the market. DAZN and The Score are just two examples of
competing services already available in the market. Premium pricing is used for luxury goods
and services. Unless ESPN+ Data Tracker can seriously differentiate itself and offer a very
innovative feature that completely changes the viewing experience, this option is not applicable
either.
Penetration pricing involves pricing the product or service very low in order to get
customers hooked on it before slowly raising the prices later on once they are used to utilizing it
and desire to have continued use of it. Penetration pricing seems to be a viable option for ESPN+
Data Tracker as the service has many features that the target market wants and because it meets
their needs perfectly. Once the customer is used to being able to watch and track their favorite
sports whenever and wherever they want as well as access to live social media content while
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watching, they will be willing to pay a slightly higher price for the service as in their minds it is
considered worth it, even at the higher price point. (Rodriguez, 2018).
SECTION VII: REFINEMENT
Evaluate the Success
One approach to evaluating the success of the app is during the acquisition phase.
The ESPN brand is a very popular one, which gives the app a leg up against competitors whose
brand may not be as recognizable. Acquiring new quality customers will give the app an added
push. The longer a customer is familiar with the brand, the less they seem to talk about said
brand. However, new customers have a key attribute that every marketer should leverage, which
is word of mouth. (Lindsay, M. 2012).
A profitability analysis can help establish the costs that will be associated with
determining the profitability of various market segments, customer accounts, and distribution
channels. A direct or full costing analysis can determine the profitability of the app. With full
costing, the analyst assigns both direct, or variable and indirect costs to the app. (Mullins, J &
Walker, O. 2011). The indirect costs involve fixed costs that cannot be linked directly to the app,
such as productions costs, hiring app developers, and negotiating the deals made to buy the
broadcasting rights to various leagues.
Benchmarking, which is reviewing the sales in relationship to its competitors will help
measure the performance of ESPN+ Data Tracker against similar apps. (Mullins, J & Walker,
O. 2011).
A sales analysis will need to be conducted to break down the aggregate sales data into
categories such as products, end-user customers, order size, channel intermediaries, and sales
territories. This analysis will help management have a better idea of formulating their objectives
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and marketing strategies, as well as non-marketing strategies to include production and facilities
planning. (Mullins, J & Walker, O. 2011).
As it relates to the app’s features, measuring the key performance indicators or (KPIs)
helps to determine which performance metrics and success metrics are considered the most
valuable or important on the app. (Evus Tech, 2017). Some KPIs include tracking the amount of
times the app is downloaded. This helps to understand its popularity among users. Though the
customer has downloaded the app, it does not ensure that the process was completed. Therefore,
tracking actual installations on various devices should also be a factor. (Evus Tech, 2017).
Keeping track of how long it takes the customer to subscribe once the installation is
complete will help understand the user’s activities on the app. The app will have upgrades from
time to time, and tracking the number of upgrades and their timing indicates the level of
engagement users have with the app and the depth of their financial commitment.
Another KPI to track is the user growth rate. This helps in determining whether it spiked
due to a particular event, or after the app has been marketed in various market segments. (Evus
Tech, 2017). Other KPIs include tracking if the customer has personalized the app to their liking,
and how much time they spend on the app. Another key factor to track is the amount of times the
app was uninstalled. A customer can uninstall the app for a variety of reasons without leaving
feedback. It would help to determine if the uninstalls coincide with an update or changes to the
app. (Evus Tech, 2017).
It is important to know how much money is generated from the app per user via in-app
purchases, ad impressions, subscriptions, paid downloads or other forms of monetization. This
helps determine the return on investment versus how much is spent on marketing, and any other
expenses that incur. (Evus Tech, 2017).
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As the app’s services begin to become similar to others in an already competitive
marketplace, the success determinant is even greater when attempting to satisfy the customer.
Measures that relate to customer preferences are essential as an early warning of looming
problems and opportunities. (Mullins, J & Walker, O. 2011).
When evaluating the success of ESPN+ Data Tracker what should also be taken into
consideration is tracking the geographic location of the customer. This will have a direct impact
on ad revenue and the various locations to target when marketing the app. Understanding the
demographics of the consumer helps determine the customer base as it compares to the target
audience. It is also an excellent way to gauge the effectiveness of marketing efforts for the app.
Tracking the behavioral metrics of the customer helps to develop app features and marketing
plans that tap into those behaviors. This can include other apps and social media sites they may
have downloaded on their mobile devices and other devices where they stream content. (Evus
Tech, 2017).
Grouping the geographic location, demographics, and behavioral metrics is extremely
valuable and helps to gain knowledge about the current and potential customer base.
Feedback Loops
When the performance standards for ESPN+ Data Tracker have been established, the
next step is to develop systems and processes for timely feedback on the app’s actual
performance. (Mullins, J & Walker, O. 2011). This includes gathering customer feedback,
learning and analyzing the data, lastly applying conclusions for the app.
Feedback loops can bring a tremendous amount of benefits for the app, as it is the
foundation of a customer engagement process. The customer’s feedback will benefit by staying
up to date on the needs and complaints the customer may have regarding the app. It will also
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uncover potential opportunities for app improvements. The company may have an idea for the
app that they believe is great, however, the user may think otherwise. (Kierczak, L. 2018).
Feedback data can be obtained through a variety of sources to include syndicated
marketing information services such as Nielson, and Environics Research Group, a service that
combines consumer purchase behavior and media usage with proprietary target market
segmentation. These services help to gather general and in some cases specific information on a
regular bases. These findings help to determine trends in customer behavior and in the
marketplace. (Devault, G. 2018).
Customer satisfaction is key for evaluating the success of ESPN+ Data Tracker.
Conducting focus groups and internal and external surveys is a way to ascertain how effective
the product is.
A focus group is a fast and interactive way to test marketing strategies for the app. It is
important to get as many opinions regarding the app as possible to gain perspective on product
specifications. It can also be used to research the best price point for the app, and other valuable
information. In-house marketing research projects can be more costly than using outside
syndicated services; however, oftentimes the problems identified in a focus group can help
prevent costly production changes, and ineffective marketing strategies. (MacDonald, A. 2018).
Customer surveys is another efficient way to gather feedback. By using surveys routinely,
it gains important information about the app’s services and enhancements. The survey will
determine what the market prefers or identifies as important. It will also track the app’s
performance. The survey can ask for customer feedback regarding their experience on the app,
and their experience with the company. Various ways to conduct the survey include robo-calling,
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and in app surveys such as Survey Monkey, and PollDaddy. This will help to keep track of how
well ESPN is doing with the marketing the product and its features. (Jantsh, J. 2012).
Another way to heighten the relationship with customers is to provide a demographic
survey that asks questions about their preferences, and their lives. This data can be used for
product service and development, and may even extend in developing key strategic partnerships.
(Jantsh, J. 2012).
In the initial stages of the app, it is important to gather regular feedback to continue to
improve on the product. On average, management uses information to determine what the
company’s performance should have been under the actual market conditions that existed when
the plan was initially executed. (Mullins, J & Walker, O. 2011).
The information gathered from the surveys and syndicated marketing information will
determine the changes such as a change in the demand for the product, a change in price by a
competitor, and its impact on market share. The results will need to be discussed at a line-item
level in order to ensure the product will be at the standard that has been set.
Mapping the measurement of the app’s success is beneficial to identify the touchpoints
and messages that drive the best conversion rate. (Lindsay, M. 2012). Tracking and monitoring
the information includes tracking the number of times the app is used on a monthly basis, the
number of times the app was recommended on social media platforms and on what context.
Brand awareness is also a key component to include the number of times the ESPN app brand
appeared in search engines. This will determine whether the plan implementation for the app is
on schedule.
Weekly meetings will need to be scheduled with the app programmers and developers,
sales and marketing, and management to discuss the strategic plan and its progression, and any
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corrective actions that need to happen. Regular daily updates to the strategic developments can
be discussed by email or phone. There are also ways to conduct face to face conference calls
using a service called Blue Jeans, or FaceTime and Skype.
Setting time to reassess the strategy of the app is pertinent. This can happen quarterly or
if there was a significant drop in sales or customer uninstallations, that would require an urgent
reassessment meeting.
Other Factors
A contingency plan needs to be in place to identify critical assumptions, and rank the
importance of each assumption. (Mullins, J & Walker, O. 2011).
Several factors might affect the implementation and timely execution of ESPN+ Data
Tracker. These factors can be financial, operational, or legal. The financial risk could include an
unforeseen increase in cost, or a loss of expected sales of the app. The operating risk could
include the application developers finding a glitch or error with the app that delays its launch, or
takes the app offline for a period. That also taps into the financial risk because with the app out
of commission, the company is losing customer money. The legal risks include product liability
and intellectual property issues. (Markgraf, B. 2018).
The app developers have to protect user data, and know how to avoid security issues,
which can be a time consuming process. No app is safe from viruses and malware, and if there is
a hiccup or security breach in the app, this can delay the development process. (Warren, J. 2018).
Because the app will need to interconnect to other services such as Twitter and Instagram
the need to integrate with third party adaptive programmable interface (APIs) come into play.
This will require the developers to understand the intricacies for those services, which can take
some time. (Warren, J. 2018).
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From an app developer’s standpoint the more features the app has the more effort and
time it will take to design, develop and test the app. Communication between the app developers
and management needs to be clear and concise, which can be difficult on some levels because
programmers use different verbiage to explain the changes and new developments. Therefore,
understanding the basic criteria and the business objectives of the app is key. Keeping an eye on
the competitor will remain a factor especially when measuring the performance against similar
apps. The app will continuously be in a state of improvement, which prevents the ESPN brand
from losing momentum; therefore, its launch is never ending.
CONCLUSION
Reaching fans requires brands to be creative with their media choices and messaging
content, so it does not frustrate or take away from their viewing experience. Technology will
continue to be a huge factor in the way sports is viewed and the role it plays in the fan’s ability to
stay connected to their favorite teams. As live sports continues to take on a notable role in the
media ecosystem, ESPN has to stay relevant and gauge fans through consumer trends that appeal
to sports fanatics.
ESPN+ Data Tracker takes it one-step further, which is ideal for the avid sports fan who
needs to know their team or player’s every move. The greatest strength with ESPN+ Data
Tracker is its ability to get immediate information about the team or player by compiling not
only all the team’s social media sites, in addition, it will compile any specific news storyline or
updates on the player or team in real time. The user does not have to scroll through various social
media and sports websites to get updates. ESPN+ Data Tracker is great for users with a short
attention span who are looking for quick updates, without reading the entire story, or while
watching live sports on the ESPN+ app.
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The launch of the ESPN+ Data Tracker app and increasing its odds of success will come
from bringing together a comprehensive strategic marketing plan. Effective control systems need
to be in place to include marketing performance measurements to ensure a timely execution of
the planned results.
Key performance indicators or (KPIs) measures the performance of the app and is an
essential factor when factoring in the app’s expectations. Identifying the top features used by the
core audience is beneficial. Also considered are value drivers that keep people coming back to
the product. Ideally, the plan would be for the customer to be using all of the top features. Those
features are measured against those of the competitor.
Though there will be a lot of trial and error, the mix of the right criterion will help
achieve the business objectives for the app. It is useful however to take a step back from the
daily results and take a longer look at the marketing performance. (Mullins, J & Walker, O.
2011).
ESPN has a significant head start in the streaming world over its direct key competitors.
The opportunity is for ESPN+ Data Tracker to be the icing on the cake for the ESPN+ app that
could potentially be a one-stop shop for all live sports programming and original content is
extremely viable.
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47
Running Head: LEADERSHIP ASSESSMENT
Leadership Assessment
9-1 Final Project – Part II
Paushawna DeCordova-Boyd
Leading in an Organization MBA-550-X4423
Dr. Dean E. Craft
July 1, 2018
1
LEADERSHIP ASSESSMENT
2
Contents
Introduction ..................................................................................................................................... 4
TEAMS ........................................................................................................................................... 5
Organization ................................................................................................................................ 5
Leadership and Management Style ............................................................................................. 6
Executive Team .......................................................................................................................... 8
Best Practices ............................................................................................................................ 10
ORGANIZATIONAL VISION .................................................................................................... 12
Strategic Plan ............................................................................................................................ 12
Internal Strengths ...................................................................................................................... 14
Internal Weaknesses.................................................................................................................. 14
External Opportunities .............................................................................................................. 15
External Threats ........................................................................................................................ 16
Vision ........................................................................................................................................ 16
Strategic Planning Methods ...................................................................................................... 18
ORGANIZATIONAL CULTURE ............................................................................................... 19
Power ........................................................................................................................................ 19
Structure .................................................................................................................................... 21
Effect Change............................................................................................................................ 23
PROBLEM SOLVING ................................................................................................................. 25
LEADERSHIP ASSESSMENT
3
Self-Assessment ........................................................................................................................ 25
Jeff Bezos Problem Solving ...................................................................................................... 26
Tools ......................................................................................................................................... 27
CONFLICT MANAGEMENT ..................................................................................................... 27
Self-Assessment ........................................................................................................................ 27
Jeff Bezos Conflict Management .............................................................................................. 29
Techniques ................................................................................................................................ 30
CONCLUSION ............................................................................................................................. 32
REFERENCES ............................................................................................................................. 34
LEADERSHIP ASSESSMENT
4
Introduction
Great companies start with great purpose formulated by the founder. (Dubrin, 13-1b,
2016). Amazon founder and CEO Jeff Bezos created what some would say is currently the
world’s most innovative company and is on the steady path to continue to take over the ecommerce world. “A brand for a company is like a reputation for a person. You earn reputation
by trying to do hard things well.” (Amazon CEO, Jeff Bezos). This quote from Jeff Bezos
summarizes the reason why Amazon is a multi-billion dollar entity.
Philanthropist, Investor, Entrepreneur and CEO of Amazon Jeff Bezos is the richest man
in the world according to Forbes. He is also the first person to top $100 billion as a number one
on the Forbes list of the World’s Billionaires. Through Amazon.com, small and medium-sized
business owners are able to reach millions of customers. The company creates more than 125
jobs in the US daily from fulfillment centers to corporate offices. Amazon employees are able to
make bold bets through innovation and are not afraid to take risks and failing during the risk
taking process. The company continues to look for unique ways to make positive and lasting
impacts in their communities. This would not be able to happen without Bezos’ vision and
business strategies for the company.
This paper will touch on Jeff Bezos’ leadership and organizational structure at Amazon.
It will focus on how he built his executive team and best practices that aided in recruiting and
retaining top talent. We will delve into Amazon’s organizational vision, culture and strategic
planning methods utilized to align with the company’s vision. Lastly we will focus on how best
practices used by Bezos while addressing problem solving and conflict management when the
issue arose.
LEADERSHIP ASSESSMENT
5
TEAMS
Defined by the needs of the company and based on each job’s responsibilities, Amazon,
Inc. the world’s largest Internet retailer operates under a functional organizational structure. This
particular structure enables managerial control and gives Amazon the support needed to launch
new products in the e-commerce market and continue to be innovative. (Meyer, P. 2017).
Amazon’s global function-based groups have a dedicated group or team, along with a
senior manager. This structure is necessary to establish successful e-commerce operations
throughout the company. (Meyer, P. 2017).
Amazon’s global hierarchy objective is to facilitate managerial control of the entire
organization. They do this by placing senior managers throughout the organization that will
affect all relevant offices of the company worldwide. (Meyer, P. 2017).
Amazon’s geographic division has group leaders based in the various geographic regions
that can address issues or concerns relevant to each regional market. (Meyer, P. 2017).
Regardless of the global hierarchy and geographic division, the mission at Amazon
remains the same, to be the best e-commerce company in the world. The company’s vision
emphasizes on its global reach, customer prioritization, and the widest selection of products.
Organization
Amazon’s leadership principles are something that is used every day, whether discussing
ideas for new projects, deciding the best solution for customers’ problems, or interviewing
potential candidates. With Amazon’s organizational structure, each major business function has a
dedicated group or team, along with a senior manager. This leader/ownership principle at
Amazon emphasizes that leaders are owners. They think long term and do not sacrifice long-term
value for short-term results. They also act on behalf of the entire company, beyond just their own
LEADERSHIP ASSESSMENT
6
team. This helps to build a solid team who in turn will be self-less and never say, “that’s not my
job.” (Sited from the Amazon Blog).
Even though Amazon has a functional organizational structure, Amazon CEO Jeff Bezos
created a unique structure with diverse individuals within that function which allows employees
the ability to be creative, innovative, open to new ideas and experiment on those ideas through
teamwork. Breaking down Amazon’s principles gives an overview of how Bezos builds and
structures a productive organization and culture.
Organizational structure is critical when creating a company whose focus is on
innovation. Open book management, is when every employee is trained, empowered, and
motivated to understand and pursue the company’s business goals. By using this method,
employees become business partners and perceive themselves to be members of the same team.
(Dubrin, 9-2b. 2016).
Amazon CEO Jeff Bezos uses open-book management as a part of his leadership
principles. These principles are a set of guidelines that all employees whom he refers to as
“Amazonians” adhere to when discussing ideas for new projects to interviewing potential job
candidates. They are: Customer obsession, Ownership, Invent and simplify, Are right, a lot, Hire
and develop the best, Insist on the highest standards, Think big, Bias for action, Frugality, Dive
deep, Have backbone, Disagree and commit, and Deliver results. These principles are valued
whether discussing ideas for new projects, deciding on the best solution for customer problems,
or interviewing potential job candidates. (Amazon Blog, 2018).
Leadership and Management Style
Jeff Bezos’ management style is unique in that he takes a completely different approach
to management than he does with leadership. He has a contrarian management technique that
LEADERSHIP ASSESSMENT
7
some would call old school. (I Done This Support, 2017). His management method teaches selfdiscipline, and sets high standards for his employees.
According to Daniel Goleman, most effective leaders have a high degree of emotional
intelligence, and without it a person can have excellent training, superior analytical skills, and
innovative suggestions, however, will not make a great leader. (Dubrin 2-1b 2016).
In his 2017 letter to shareholders, Bezos explains how they do not do PowerPoint or any
other slide-oriented presentations at Amazon. They instead write structured six-page narrative
memos. (Amazon Letter to Shareholders, 2017).
By imposing this exercise on the team, it allows them to recognize high standards and
teach realistic expectations on a scope. Bezos also expresses how writing a six-page memo is
teamwork, because someone on the team has to have the skill to write the memo. (Amazon Letter
to Shareholders, 2017). This type of management style has strategic acuity. Bezos thinks
conceptually and has farsightedness. (Dubrin 2-3e 2016).
High standards appears to be the theme as it relates to Jeff Bezos and leadership style at
Amazon. He began his 2017 letter to shareholders with the question; how do you stay ahead of
ever-rising customer expectations? His answer was there is no single way to do it – it is a
combination of many things; but high standards are a big part of it. (Amazon Letter to
Shareholders, 2017).
Bezos assertiveness as a leader has drawn a lot criticism from past employees and the public.
A 2015 New York Times article written about Amazon’s employee experience painted a picture
of an environment where employees were pushed beyond their limits, and encouraged to
sabotage each other. Bezos wrote a letter defending Amazon’s culture, which stated, “The reason
cultures are so stable in time is because people self-select. Someone energized by competitive
LEADERSHIP ASSESSMENT
8
zeal may select and be happy in one culture.” He added, we never claim that our approach is the
right one – just that it’s ours.” (Maylett, T. 2017).
Bezos leadership style does lack emotional intelligence in a sense. In reports from Brad
Stone, the author of “The Everything Store: Jeff Bezos and the Age of Amazon, it indicated that
Bezos could be a demanding boss, who has not been one to mince his words at his employees.
He would bark at employees saying things to the nature of “I’m sorry, did I take my stupid pills
today?” and, “Are you lazy or just incompetent?” (Cain, A. 2017).
Some may beg to differ as it refers to Bezos. According to several current and former
Amazon employees, that trait is one that helped make him the world’s richest man and an
effective leader. Brian Kruger, former VP of Global Talent Acquisition at Amazon said Bezos
was unlike any other CEO he has ever met. He states, “Jeff is probably one of the smartest, if not
THE smartest, CEOs of the Fortune 500. He has a brilliance all his own. And he has very high
standards for himself personally, which carry over to his team.” He goes on to say, he expects a
lot out of people. Is that being a tyrant? No, not if you want to work hard and grow. If you are
lazy, do not get anywhere near Jeff. He focuses on those who deliver.” (Krueger, B (2017).
There has been turnover at Amazon, as the company is not right for everybody. However, as
a leader, Bezos openly displays his expectations, which shows core self-evaluation as a manager.
Therefore, those who have remained retained have the same expectation alignment, which is the
level to which employees’ expectations for their experience in the workplace line up with their
perceived actual experiences. (Maylett, T. 2017).
Executive Team
LEADERSHIP ASSESSMENT
9
Bezos has executives read six-page narrative memos prior to the start of a meeting. The team
silently reads the memo at the beginning of each meeting in a way in which he describes as a
“study-hall.” The memos he states are thoughtful and brilliant and set up the meeting for highquality discussion. (Amazon Blog, 2018).
Bezos describes that people believe a high-standards six-page memo can be written in one
day, when it may really take one week or more to write. The memos are written, and then rewritten, shared with executives who are asked to improve the document. It is then set aside for a
couple of days to marinate, and edited again with a fresh outlook on the document. The purpose
of this exercise is to recognize the scope. By doing this exercise with his executives, he is
training them on how to improve results through the simple act of teaching realistic scope.
(Amazon Blog, 2018).
A major strategy of teamwork development is promoting the attitude among group members
that working together effectively is expected. (Dubrin 9-2a, 2016). Teamwork improves when a
leader practices consensus decision making. This is because it leads to an exchange of ideas
within the group, with members supporting and refining each other’s suggestions. (Dubrin 2016).
Bezos is not a fan of large teams. He has made it a culture to have teams completely
independent of other teams within the company. When it comes to experimenting on new ideas,
and deciding on what projects to take, Bezos limits the team size with the smallest teams
possible by creating a two-pizza rule: if it takes more than two pizzas to feed the group, then the
group is too big. (Anders, G. 2012). By using the energy and engagement with a small group
eating two pizzas around a conference table, it displays close social face-to-face interaction.
Studies have suggested that smaller teams in most cases are more productive, and those team
members have more face time and social contact, which often prove valuable. (Stack, L. 2016).
LEADERSHIP ASSESSMENT
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A foundation strategy for achieving good teamwork is to select members for the team
with aptitude, skill, and interest in teamwork. (Dubrin 9-2b, 2016). Team development is key at
Amazon, and it starts with hiring and onboarding the right candidate for the role. One of
Amazon’s leadership principles Hire and develop the best states that leaders raise the
performance bar with every hire and promotion. They recognize exceptional talent, and move
them throughout the organization. Leaders also develop leaders and take their coaching role
seriously. (Amazon Blog, 2018).
Bezos has engraved the respect for ethics at Amazon, which is why they screen its job
candidates for a strong bias to action and the ability to work through uncertainty.
One of the interviewing tactics they would have the candidate process is a scenario in
which they have to create an action plan as brand managers in an area where ...
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