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PEST Analysis: Bayern Munich Football Club

1139 Words5 Pages

Introduction Bayern Munich Football Club is one of the most valuable football clubs around. Being the dominant team in Bundesliga and also a 5-time Champion League champion (Russell Hoye, 2015), these helped them gain 3 globally strong partners and a sizable amount of fans around the world. Value of Bayern Munich The main consumers of FC Bayern are their fans and there are two values that FC Bayern’s fans are attached to; FC Bayern’s ability to stay close to their roots and their love for the fans. New rulings from German Football Association, specifically the “50+1” regulation (Kindler, 2014), helped eradicate foreign control of the football clubs. This helped gained them a substantial amount of supporters. FC Bayern’s achievement gained …show more content…

Moreover, FC Bayern is very fan-oriented, so it is not their culture to raise ticket prices (Weingärtner, 2011). PEST Analysis Political There are two regulations that are affecting FC Bayern. “50+1” rule has helped FC Bayern increase club members, as members are holding 75% of the shares, taking control of the club; making a true club for members. As for UEFA Financial Fair Play Regulations, it is established to prevent rich football clubs to squander money to attain sports success (Franck, 2014). However, the process lacks transparency. It is observed that certain teams that were penalized came back stronger than before. This lack of transparency leads to inequality. Economic Germany, Europe’s economy powerhouse, strong enough to save the Eurozone. This has decrease unemployment rate in the country, wages increased and the Germans satisfied with the standard of living (Nath, 2015). With the above factors, football matches are affordable and they are able to purchase merchandises from their favourite football clubs. This has helped FC Bayern on their commercial activities, including sponsorships, merchandising and revenues from match day tickets. …show more content…

FC Bayern made use of SAP’s software to enhance fan experience to increase engagement and loyalty, increasing merchandise sales. Additionally, the software is also used to analyse players’ health and performance. Marketing and Sales FC Bayern’s strong brand identity and their on-pitch performance assisted them in increasing commercial revenue (Alex Bosshardt, 2015). Also, the number of memberships, the brand image and value of FC Bayern rose worldwide. Inbound/Outbound Logistics Football players are the main suppliers of a football team. FC Bayern has been doing a remarkable job in identifying, recruiting and training young, talented players. As a result, FC Bayern’s homemade players are always able to deliver a spectacular performance for fans. From this, FC Bayern is also able to further develop brand identity and value. This shows that youth development is essential for the success of football clubs (Mark Nesti, Youth Development in Football: Lessons from the world's best academies,

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