S.W.O.T Analysis for the Major League. Baseball organization

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S.W.O.T Analysis For
Major League Baseball (MLB)
Marcel Perez
Full Sail University
Sports Business Models
April 9, 2020

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The MLB is one of the most entertaining and powerful leagues in all of sports. The MLB as a
league are very strong marketing their brand and selling their products. They are also very
diverse from other leagues because of their presence of having players all over the world. In an
entertainment aspect the MLB have contracts with amazing broadcast networks like FOX.
However, the league has some weaknesses like lack of having their broadcast available
internationally or the complaint of the length of the game of baseball. This provide the MLB the
opportunity to expand internationally and get the game around the globe. Also, it gives the
opportunity to change some rules of make the game faster to please the fans.
HELPFUL HARMFUL
INTERNAL
STRENGTHS
1. Excellent merchandising &
marketing for their products.
2. Presence of the best players from
across the world
3. Excellent broadcasting for their
live games.
WEAKNESSES
1. Have not got into the Asia
market, and lack internationally.
2. Length of game; can last up to 3
hours or more.
3. Various doping related
controversies in the recent past
EXTERNAL
OPPORTUNITIES
1. Technology is advancing (add a
potential automated strike zone,
replays, and improve the
challenge system)
2. Get more involved with
international fan base.
3. Speed up the pace of the game
and eliminate parts of the game
that aren’t necessary.
THREATS
1. The MLB is in a competitive
market with other sports leagues
like the NFL, NBA, NHL, and
MLS.
2. Use of steroid from players can
provide a threat to the league
and ruin its reputation or
credibility.
3. Threats from soccer because it is
a rising sport in the US.

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Strengths:
Merchandising & Sponsorships
When it comes to merchandising this is one of the MLB biggest strengths. In the past ten years
MLB Merchandise sales have remained around $3 billion per year. This revenue usually comes
from the historic and famous teams like the New York Yankees. Only in the 2018-2019 season
the New York Yankees made $668 million dollars in revenue only that year in merchandise. The
MLB also have big time sponsors like Budweiser, Gatorade, T-Mobile and etc. These sponsors
also help the MLB with marketing the league because they feature the MLB in their commercials
and promotions.
Best Players from Across the World
The MLB has Globally known starts like Francisco Lindor, Juan Sotto, Ronald Acuna Jr and
many more. The MLB A total of 251 players represented 20 different countries and territories
outside of the 50 United States. Also 27% of MLB players are foreign born. Most of these
players are passionate about the country they come from, so this provides any opportunity to also
market the MLB brand internationally.
Excellent Broadcasting & Media
The MLB announced that they agreed to a new tv rights contract with FOX for $5.1 billion. Fox
is one of the biggest television networks in the nation. This shows how serious the MLB is with
their live broadcasting and how Serious they take the quality of their broadcast.
Weaknesses:
Lack Internationally
Although the sport of baseball and the league itself are very known internationally. But for other
countries it isn’t as easy for them to access the live broadcast and really engage as a fan. I believe
the MLB have to expand to other countries and make sure there is access for MLB fans around
the world.
Length of Game
In the past years MLB games averaged a length of 3 hours, 5 minutes, and 45 seconds. This year
the average when up 5 minutes from the previous years. This brings frustrations to viewers at
home and the stadium itself.
Doping Related Controversies
Since 2005 when the MLB started its Major League Drug Prevention and Treatment Program,
number and cases for steroids and PED’S have risen. Just last year there was 8 players in the
MLB that tested positive. This is very dangerous to the league’s reputation and credibility.

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Opportunities:
Advancement in technology
Technology has had a huge impact around the world and also in the sports industry. With
technology involving the MLB will have opportunities to test out and experiment a potential
software for an automated strike zone. This will differ from other sports league who usually have
referees. This will bring a unique feature to the league.
More involved with International Fan Base
With the MLB having 251 players representing 20 different countries, this means the MLB has
fans outside of the USA. I believe this bring opportunity for the MLB to start playing games in
other countries where fans can have the same opportunity, we have to catch a ball game. This
will look very good for the MLB as a league, especially if they can expand.
Speeding Up the Game
The MLB have received many complaints regarded the slow pace to the game of baseball.
Games last more then 3 hours which is more than most sports. They are opportunities to seed up
the game up to please the fans and viewers of the game. This will make the watching experience
way better, especially for broadcast.
Threats:
Competitive Market
The threats for the MLB would of course be the other sports leagues in the US. The MLB has
the benefit that no major sports are running at the same except for football. The MLS also. Is
growing in popularity which can take viewership from the MLB. The average MLB fan is 55
years old, which is also a problem when it comes to competitiveness.
Use of steroids
The use of steroids from player in the league can really ruin their credibility. Sometimes people
do not trust in the league because some cases have brought a lot of conspiracy and it is hard to
trust. These steroids use also had brought problems to people getting nominated for the Hall of
Fame, so it can ruin that as well.
Threats From the MLS
The MLS is a threat to the MLB because they are rising sports league in the US. You can see the
rise by the demand of the tickets. The new franchise in Atlanta sold 30,00 season tickets on their
debut which broke an MLS record. The MLS also can take potential baseball fans away from the
MLB.

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www.statista.com/statistics/196673/revenue-of-the-new-york-yankees-since-2006/.
“Official Sponsors of Major League Baseball.” MLB.com, www.mlb.com/sponsorship/official-
sponsors.
“More than 250 International Players on Opening Day Rosters.” Reuters, Thomson Reuters, 29
Mar. 2019, www.reuters.com/article/us-baseball-mlb-players/more-than-250-international-
players-on-opening-day-rosters-idUSKCN1RA2OT.
Fontinelle, Amy. “How Major League Baseball Makes Money.” Investopedia, Investopedia, 24
Feb. 2020, www.investopedia.com/articles/personal-finance/062415/major-league-baseballs-
business-model-strategy.asp.
Daniels, Tim. “MLB, Fox Announce New TV Rights Contract Worth Reported $5.1
Billion.” Bleacher Report, Bleacher Report, 15 Nov. 2018, bleacherreport.com/articles/2806206-
mlb-fox-announce-new-tv-rights-contract-through-2028-season.
“MLB Drug Suspensions.” Federal News Network, 21 June 2019,
federalnewsnetwork.com/sports-news/2019/06/mlb-drug-suspensions/.
Dybas, Todd, and Matt Weyrich. “New MLB Rules Try to Speed up Game, Entice Stars,
Reframe Rosters.” NBC Sports Washington, 14 Mar. 2019,
www.nbcsports.com/washington/nationals/new-mlb-rules-try-speed-game-entice-stars-reframe-
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