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Harvard Case - PGA Golf: Is Sunday Made for TV?

"PGA Golf: Is Sunday Made for TV?" Harvard business case study is written by Chris A. Higgins. It deals with the challenges in the field of General Management. The case study is 3 page(s) long and it was first published on : Oct 23, 2012

At Fern Fort University, we recommend that the PGA Tour implement a strategic shift towards a more fan-centric approach, leveraging technology and data analytics to enhance the viewing experience and broaden the appeal of golf to a wider audience. This includes embracing digital platforms, exploring new formats, and optimizing the Sunday tournament schedule for maximum engagement and viewership.

2. Background

The PGA Tour faces a challenge in maintaining its relevance and viewership in a rapidly evolving media landscape. The traditional Sunday format, while historically successful, is losing its appeal to a younger, more digitally-savvy audience. The case study highlights the tension between the PGA's commitment to its traditional format and the need to adapt to changing consumer preferences. The main protagonists in this case are the PGA Tour executives, who are tasked with balancing tradition with innovation, and the golf fans, whose viewing habits are shifting.

3. Analysis of the Case Study

To analyze the PGA Tour's situation, we can apply a framework that considers both internal and external factors:

Internal Analysis:

  • Strengths: Strong brand recognition, established tournament format, dedicated fan base.
  • Weaknesses: Traditional format may be losing appeal, limited digital presence, potential for declining viewership.
  • Opportunities: Leverage technology for enhanced viewing experience, explore new formats, expand global reach.
  • Threats: Competition from other sports and entertainment options, changing consumer preferences, potential for declining sponsorship revenue.

External Analysis:

  • Porter's Five Forces:
    • Threat of New Entrants: Relatively low, due to high barriers to entry in professional golf.
    • Bargaining Power of Buyers: Moderate, as viewers have diverse options, but the PGA Tour holds a strong brand.
    • Bargaining Power of Suppliers: Low, as the PGA Tour has significant leverage with sponsors and broadcasters.
    • Threat of Substitute Products: High, as viewers have various entertainment options, including other sports and streaming services.
    • Rivalry Among Existing Competitors: Moderate, as the PGA Tour faces competition from other professional golf tours and other sports.

Key Findings:

  • The PGA Tour's traditional format is losing its appeal to younger viewers.
  • The rise of digital platforms and streaming services has changed consumer behavior.
  • The PGA Tour needs to adapt to these changes to maintain its relevance and viewership.

4. Recommendations

To address the challenges and capitalize on opportunities, the PGA Tour should implement the following recommendations:

1. Embrace Digital Platforms and Technology:

  • Enhance the Viewing Experience: Implement live streaming, interactive features, and data-driven insights to enhance the viewing experience across all platforms.
  • Develop a Robust Digital Presence: Create engaging content, utilize social media effectively, and build a strong online community to connect with fans.
  • Leverage Data Analytics: Utilize data analytics to understand fan preferences, optimize content, and personalize the viewing experience.

2. Explore New Tournament Formats:

  • Experiment with Shorter Formats: Introduce shorter, more fast-paced formats like 'match play' or 'alternate shot' to appeal to a wider audience.
  • Create Innovative Events: Develop unique events that cater to specific demographics or interests, such as celebrity pro-ams or team competitions.
  • Embrace Technology in Tournament Operations: Utilize technology to improve efficiency, enhance fan engagement, and create new opportunities for sponsors.

3. Optimize the Sunday Schedule:

  • Shift to a Primetime Sunday Finish: Move the final round of tournaments to a primetime Sunday slot to maximize viewership and attract a broader audience.
  • Consider a 'Sunday Night Football' Model: Explore a 'Sunday Night Football' model, featuring a marquee matchup between top players or teams.
  • Offer Flexible Viewing Options: Provide viewers with multiple ways to watch, including live streaming, on-demand replays, and highlights.

4. Focus on Global Expansion:

  • Develop International Tournaments: Increase the number of international tournaments to expand the PGA Tour's global reach and attract new fans.
  • Partner with International Organizations: Collaborate with international golf organizations to promote the sport globally.
  • Target Emerging Markets: Identify and target emerging markets with high growth potential for golf.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations align with the PGA Tour's core competencies in professional golf and its mission to promote the sport globally.
  • External Customers and Internal Clients: The recommendations address the needs of both external customers (viewers and fans) and internal clients (players, sponsors, and broadcasters).
  • Competitors: The recommendations are designed to help the PGA Tour maintain its competitive advantage in the evolving sports and entertainment landscape.
  • Attractiveness: The recommendations are expected to increase viewership, attract new sponsors, and generate revenue growth.

Assumptions:

  • The PGA Tour is willing to embrace change and invest in new technologies.
  • Golf fans are open to new formats and viewing experiences.
  • The PGA Tour can successfully navigate the challenges of global expansion.

6. Conclusion

The PGA Tour faces a critical juncture in its history. To remain relevant and thrive in the future, it must embrace innovation, leverage technology, and adapt to changing consumer preferences. By implementing the recommendations outlined above, the PGA Tour can enhance the viewing experience, broaden its appeal, and secure its position as a leading force in professional golf.

7. Discussion

Alternatives:

  • Maintain the Status Quo: This option carries the risk of continued viewership decline and a loss of relevance.
  • Focus Solely on Digital Platforms: This option could alienate traditional fans and may not be sustainable in the long term.

Risks:

  • Resistance to Change: Traditional fans may resist changes to the format and schedule.
  • Technology Adoption: Implementing new technologies effectively requires significant investment and expertise.
  • Global Expansion Challenges: Expanding globally presents logistical and cultural challenges.

Key Assumptions:

  • The PGA Tour is willing to embrace change and invest in new technologies.
  • Golf fans are open to new formats and viewing experiences.
  • The PGA Tour can successfully navigate the challenges of global expansion.

8. Next Steps

The PGA Tour should establish a task force to develop a detailed implementation plan, with the following key milestones:

  • Phase 1 (Year 1): Implement digital platform enhancements, explore new formats, and conduct market research on consumer preferences.
  • Phase 2 (Year 2): Launch pilot programs for new formats, optimize the Sunday schedule, and begin global expansion efforts.
  • Phase 3 (Year 3): Evaluate the results of pilot programs, refine strategies, and expand global reach.

By taking these steps, the PGA Tour can ensure its continued success in the evolving world of professional golf.

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Case Description

Two avid golfers were having a debate over whether scores were lower on Sundays. One of the golfers believed that courses were made easier on Sunday for viewers who wanted to see low scores. The other golfer countered that all the pressure on the golfers on Sunday would surely raise their scores and, in fact, the television coverage would make things worse. Using a dataset from the 2011 season, various questions about golfers and golf tournament can be addressed. These include: Are scores different from the first day to the last day? Are scores different across the four rounds? Are young people doing better than those who are older? Do long hitters have lower scores? How important is driving accuracy in determining one's score? Do people putt for dough and drive for show? The dataset is available from the case author. The dataset contains over 1,000 responses across the four generations (Veterans, Boomers, Gen X, Gen Y). It also contains enough responses to deal with the question of whether there were three sub-generations of Boomers.

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