Case 1 – Manchester United, Still Trying to Establish a Global Brand

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Case 1 – Manchester United, Still trying to establish a global brand Question 1 How do you evaluate the international competitiveness of ManUtd after the takeover of Malcolm Glazer? After the takeover of Malcom Glazer, ManUtd tried to extend its international competitiveness. Indeed, it started a sponsorship with Nike. ManUtd had also a new shirt sponsors MandUtd, AIG, which makes it have the largest sponsorship deal and replaces the previous deal with Vodafone. We can note that the new sponsor is no longer a British company but an American one. Furthermore, ManUtd made a secondary business line, mostly financial, where it provides mortgage, loan, credit card, insurance but also lotteries or cinema for all their fans. This…show more content…
To have chosen Nike for an alliance is a big advantage for ManUtd because being a world leader in the sportswear industry, Nike already has a large network of consumers and so it insures the good sell of the ManUtd products. Thus, these alliances increase the competitiveness of ManUtd by placing it at the international scale with a huge fan database provided by Nike. Question 3 What are the main threats to retaining ‘Manchester United’ as a global brand? The brand building of ManUtd depends of the stars that can become the players. One of the main threat is found in the fact that « strong teams employ strong players who become brands themselves ». Indeed, if one of the player comes to the rank of superstar, his market value will be so high that even the club will not be able to afford it anymore. That was the case with David Beckham so ManUtd had to sell him to Real Madrid one year before the contract expires. Knowing that the products and shirts sold by Nike depend mostly on the players, if one of them leaves the club, it will not be a good thing for the global brand ManUtd. Moreover, to guaranty the effective sales of the merchandises, the football stars have to be performant in order to increase their popularity. Thus, fans will be motivated to buy shirts with the player’s name. In conclusion, to insure the well functioning of the ManUtd brand

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