Harvard Case - The Battle of the Alamodome: Henry Cisneros and the San Antonio Stadium (Economic Analysis Version)
"The Battle of the Alamodome: Henry Cisneros and the San Antonio Stadium (Economic Analysis Version)" Harvard business case study is written by Nancy Kates. It deals with the challenges in the field of Strategy. The case study is 18 page(s) long and it was first published on : Jan 1, 1989
At Fern Fort University, we recommend that Henry Cisneros and the San Antonio City Council pursue a comprehensive strategy for the Alamodome, focusing on strategic partnerships, diversification of events, and a clear value proposition to maximize its economic impact and ensure its long-term viability. This strategy should prioritize innovation, technology integration, and a focus on sustainability to remain competitive in the evolving entertainment and sports landscape.
2. Background
The case study focuses on the challenges faced by the Alamodome, a multi-purpose stadium in San Antonio, Texas, built in 1993. Despite initial success, the Alamodome faced declining attendance, increasing operating costs, and competition from newer, more modern venues. Henry Cisneros, the Mayor of San Antonio at the time, was tasked with finding a solution to revitalize the stadium and ensure its continued economic contribution to the city.
The main protagonists are Henry Cisneros, the Mayor of San Antonio, and the San Antonio City Council, who are responsible for making decisions about the future of the Alamodome. The case study also highlights the perspectives of various stakeholders, including the San Antonio Spurs, the city's professional basketball team, and the local community.
3. Analysis of the Case Study
Strategic Analysis:
SWOT Analysis:
- Strengths: Location in the heart of San Antonio, large capacity, existing infrastructure, potential for hosting diverse events.
- Weaknesses: Aging infrastructure, limited parking, competition from newer venues, lack of a clear brand identity.
- Opportunities: Diversification of events, partnerships with local businesses and organizations, technology integration for enhanced fan experience, leveraging the city's cultural heritage.
- Threats: Competition from other entertainment venues, economic downturns, changing consumer preferences, potential for obsolescence.
Porter's Five Forces:
- Threat of New Entrants: Moderate, as building new stadiums is expensive, but the city might face competition from smaller, more specialized venues.
- Bargaining Power of Buyers: High, as fans have multiple entertainment options and can choose to attend other events.
- Bargaining Power of Suppliers: Moderate, as the Alamodome relies on various suppliers for services and events.
- Threat of Substitutes: High, as fans can choose to attend other entertainment events, including concerts, sporting events, and cultural performances.
- Rivalry Among Existing Competitors: High, as the Alamodome faces competition from other venues in San Antonio and surrounding areas.
Value Chain Analysis:
- Primary Activities: Event hosting, facility management, marketing and promotion, ticket sales, food and beverage services.
- Support Activities: Infrastructure maintenance, technology integration, human resource management, financial management.
Financial Analysis:
- The case study highlights the Alamodome's financial struggles, including declining attendance and increasing operating costs.
- A comprehensive financial analysis would be necessary to assess the stadium's profitability, identify cost-saving measures, and evaluate potential investment opportunities.
Marketing Analysis:
- The Alamodome needs to develop a clear value proposition to attract diverse audiences and differentiate itself from competitors.
- Market segmentation is crucial to identify target audiences and tailor marketing campaigns accordingly.
- Brand management and social media marketing are essential to enhance the Alamodome's image and reach new customers.
Operational Analysis:
- Technology integration can enhance the fan experience, improve operational efficiency, and generate new revenue streams.
- Sustainability initiatives can reduce costs, attract environmentally conscious customers, and enhance the Alamodome's reputation.
- Strategic partnerships with local businesses and organizations can create synergies and generate new revenue opportunities.
4. Recommendations
- Diversification of Events: The Alamodome should expand its event portfolio beyond sporting events to attract a wider audience. This includes hosting concerts, conventions, trade shows, family entertainment, and cultural events.
- Strategic Partnerships: The Alamodome should form strategic partnerships with local businesses, organizations, and institutions to create synergies and generate new revenue opportunities. This includes collaborating with the San Antonio Spurs, the city's tourism board, and local universities.
- Technology Integration: The Alamodome should invest in technology to enhance the fan experience, improve operational efficiency, and generate new revenue streams. This includes Wi-Fi access, mobile ticketing, interactive displays, and virtual reality experiences.
- Sustainability Initiatives: The Alamodome should implement sustainability initiatives to reduce costs, attract environmentally conscious customers, and enhance its reputation. This includes energy efficiency measures, waste reduction programs, and water conservation efforts.
- Clear Value Proposition: The Alamodome should develop a clear value proposition that highlights its unique features, benefits, and target audiences. This should be communicated effectively through marketing campaigns and branding initiatives.
5. Basis of Recommendations
These recommendations are based on a comprehensive analysis of the Alamodome's strengths, weaknesses, opportunities, and threats. They consider the following factors:
- Core Competencies and Consistency with Mission: The recommendations align with the Alamodome's core competencies in event hosting and facility management, while also expanding its mission to become a more versatile and sustainable venue.
- External Customers and Internal Clients: The recommendations address the needs of diverse customer segments, including sports fans, concertgoers, convention attendees, and families. They also consider the needs of internal clients, such as staff and partners.
- Competitors: The recommendations aim to differentiate the Alamodome from competitors by offering a wider range of events, enhanced technology, and a focus on sustainability.
- Attractiveness ' Quantitative Measures: The recommendations are expected to generate positive financial returns by increasing attendance, diversifying revenue streams, and reducing operating costs.
6. Conclusion
By implementing these recommendations, Henry Cisneros and the San Antonio City Council can revitalize the Alamodome and ensure its long-term viability. The strategy focuses on innovation, diversification, and strategic partnerships to create a dynamic and sustainable entertainment destination that meets the needs of diverse audiences and contributes to the economic growth of San Antonio.
7. Discussion
Other alternatives not selected include:
- Demolition and Replacement: This option would involve demolishing the Alamodome and building a new, modern stadium. However, this would be a costly and time-consuming process, and it might not be feasible given the city's budget constraints.
- Selling the Alamodome: This option would involve selling the stadium to a private entity, which could then operate it for profit. However, this could lead to the loss of public control over the stadium and potentially result in higher ticket prices for residents.
Risks and Key Assumptions:
- Economic Downturn: A significant economic downturn could impact attendance and revenue.
- Changing Consumer Preferences: Consumer preferences are constantly evolving, and the Alamodome needs to adapt to stay relevant.
- Competition: The Alamodome faces competition from other venues, and it needs to maintain its competitive edge.
Options Grid:
| Option | Advantages | Disadvantages |
|---|---|---|
| Diversification of Events | Increased attendance, diversified revenue streams | Potential for cannibalization of existing events |
| Strategic Partnerships | Synergies, new revenue opportunities | Potential for conflicts of interest |
| Technology Integration | Enhanced fan experience, operational efficiency, new revenue streams | High initial investment costs |
| Sustainability Initiatives | Reduced costs, enhanced reputation | Potential for higher operating costs |
| Clear Value Proposition | Attracts target audiences, differentiates from competitors | Requires effective marketing and branding |
| Demolition and Replacement | New, modern stadium | Costly, time-consuming |
| Selling the Alamodome | Potential for profit, reduced operating costs | Loss of public control, potential for higher ticket prices |
8. Next Steps
- Develop a detailed strategic plan: This plan should outline specific goals, objectives, strategies, and action plans for each recommendation.
- Secure funding: The city council should allocate sufficient funding for the implementation of the strategic plan.
- Form a task force: A task force should be formed to oversee the implementation of the strategic plan and monitor progress.
- Engage stakeholders: The city council should engage with stakeholders, including residents, businesses, and organizations, to gather feedback and build support for the strategic plan.
- Implement the strategic plan: The strategic plan should be implemented in a phased approach, with clear milestones and timelines.
By taking these steps, Henry Cisneros and the San Antonio City Council can ensure that the Alamodome remains a valuable asset for the city and a source of economic growth for years to come.
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Case Description
Economic Analysis Version of case HKS257 (896.0). Major government-funded public works projects are often touted both for the needs they will fulfill and the jobs they will provide. This case examines the assumptions underlying San Antonio Mayor Henry Cisneros' push for publicly financed construction of a domed sports stadium. HKS Case Number 896.3
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