Customer Intimacy
The disciplines that are maintained by IMG are considered as the customer intimacy for Maria Sharapova. IMG mostly recognizes a talent and then builds strong relationships in order to spread the talent across the globe and to maintain that talent in all fields.
PESTEL Analysis
Political
The IMG Company has joint ventures in 4 major countries which include India, China, Brazil, and Turkey. These countries are the four major partners which develops sporting equipment due to the low production cost, and develops fashion and entertainment products. However, unstable political conditions can have huge impact on the operations of the business.
Economical
The tennis sports trends are on the verge of increase in the United States which has resulted in the purchasing of millions of dollars of products. A sharp increase in the interest of buying the tennis equipmentamongst customers is because of good financial stability in the region.
Social
Maria Sharapova is the ambassador of UNDP and other United Nations organization that help people in managing their lives, and also to promote a positive work environment. It is a good social responsibility as well to maintain a good society as this would allow a positive step towards positive steps in entering the real world.
Technological
The element of technology could be seen in the racquets of players as graphite strings have been allowed by the International Tennis Federation (ITF) which makes the shot to go stronger, powerful, and stable. The review system has also been added by the ITF which allows ball tracking movements.
Environmental
Maria Sharapova is also involved in making a greener and a healthier environment due to which Sharapova has taken strong stance for energy issues in the developing and the underdeveloped areas.
Legal
Maria Sharapova has also taken strong stance for anti-doping activities in relation with the ITF as the procedure is not legal in the country nor any other country as the rule is standard. Along with ITF she also creates awareness on doping activities in teenage tennis players.
Porter’s 5 Forces Model
Threat of a Substitute
Caroline Wozniacki and Li Na could be considered as the strong substitute for Maria Sharapova in terms of playing tennis and of good looks which makes them more competitive in the industry. However, in other sports Anna Rawson and Magdalena Neuner are gaining much attention in the sorts industry and as well as in fashion industry.
Threat of a New Entrant
Many new entrants have been emerging each year that have good abilities in terms of hitting the balls through a certain angle which makes the game more difficult. The age for Maria Sharapova is increasing and so her physical abilities decline. However, maintaining demand would surely keep Sharapova in-line for another Wimbledon title.
Competitive Rivalry
The most competitive rival is none other than Serena Williams who is comparatively fitter in terms of strength and physical abilities than the rest of the WTA players. As Serenea Williams is desperate to take revenge from Maria Sharapova, this makes the competitive rivalry even more intense.
Bargaining Power of a Supplier
The bargaining power of suppliers are low as many companies would want to represent Maria Sharapova. IMG is an agency which represent Maria Sharapova and they are bind to provide her the endorsement deals and contracts. The exchange cost from shifting Maria Sharapova from one firm to another is high. However, the company has managed to develop a strong long term relationship with Maria Sharapova.
Bargaining Power of a Buyer
Many big companies are searching for Maria Sharapova’s endorsement deals and to provide her their services. Maria Sharapova has the ability to pick any of the endorsement deals she wants as she has a higher bargaining power as she is liked by many of the audiences. Therefore, Sharapova choses only those companies that better fits her personality(Mullin & Sutton, 2007).
Recommendations
Limiting the Endorsement Deals
In the initial stage of Maria Sharapova after being the Wimbledon champion, it is recommended to Max Eisenbud that very limited endorsement deals shall be signed so that Maria Sharapova could focus on her career. The first priority for Sharapova shall remain on developing her career, and when her career gets steady and on the track, thenEisenbud may choose to increase the number of endorsements...............................
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