NBA Case Study
NBA’s Globalization Milestones
2007: First
1997: NBA European
1992: The “Dream
1936: Basket Ball
1891: Basket Ball is
born in USA
1895: Basket Ball is
introduced in China
becomes an
Olympic Sport
First 7 gold medals
will be won by USA
until Russia wins in
1972
1946: NBA is
created (as BAA)
Team” in Barcelona
with NBA players.
“Everybody wants to
be like Mike”
1992: NBA counts
23 foreign players
from 18 countries
1993: Jordan is the
most popular athlete
in Rugby loving New
Zealand.
1995: NBA expands
to Canada
HQ in Paris
1999: “Hoops”
Chinese version.
2001: BWOB Camp in
Italy
2002: Yao Ming from
China is #1 Draft pick
2003: NBA opens
office in Beijing
2004: BWOB Camp in
South Africa
2005: First non-US
MVP
2006: Team jerseys
manufactured by
Adidas
2007: 25% of NBA
players are non US
European NBA MVP
2008: China plans
to have courts in
every village
2008: Best US
High School player
decides to go play in
Europe
2008: First outdoor
NBA game
2008: NBA China
creation, to be
played in 8 to 12
arenas
2010: All Star
Games broadcast
live in 215 countries,
41 languages
2010: 300 million
Chinese are playing
Basket Ball
Source:
Effect on the NBA’s competitive position
To judge of the effect on the NBA’s competitive position, the five forces analysis model of Michael
Porter can show the competitive position changes detailing:
Threat of new market entrants
Threat of substitutes
Bargaining power of buyers
Bargaining power of suppliers
Competitors within the industry
1.
Threat of new market entrants
•
The alliances created by the NBA with local TV channels, the creation of the distribution network
for NBA merchandises, and the presence of franchises in the probably best stadiums of the US
would make the direct entry difficult but still possible
•
The costs necessary for a new entrant to enter directly the market in the US would...