International Management Group IMG Case Solution

1. For each of the IMG’s key areas – tournament creation; production and broadcasting; and training academies – evaluate whether it makes sense for International Management Group to operate in this area, considering the following issues.

a. Does doing this activity help IMG create and/or capture value?

b. Does IMG have a cost advantage in doing this activity? A differentiation advantage?

c. Is IMG more attractive to star talent (as a talent agency) because it does this activity?

d. What are the problems or dangers with IMG doing this activity?

Tournament creation

Tournament creation through organizing, owning, and sponsoring events has also been a major source of value creation for IMG. This was largely possible through the increased control that IMG experienced over all facets of the sports industry through event ownership and tournament creation – leading IMG to higher profitability, increased appeal as well as higher revenue generation and creation. With event creation through ownership of facilities like sporting stadiums, IMG also experienced an added cost advantage and benefit. For example, the company simply did not have to a percentage of the ticket sales or promotions to the owners, nor would it have to adhere to the schedules and processes of the facility owners. Instead, the company would be able to save on these costs, and create its own schedule and processes which in turn would lead to increased revenue generation for the company as well as added value for the customers and clients through easy processes and higher accessibility. The expansion and growth that the company experienced through tournament creation did in fact work to attract and appeal to star talent. However, the representation and ownership of events and sports entities was largely done by IMG to counter the drawbacks of representing sports athletes – which included at large a fall in commission when the star athlete retired. Despite this, the company managed to appeal to star talent, and continued to represent a growing number of athletes in addition to sport entities. The company however is challenged and faces risk in this activity as newer business models, and collaborative patterns are experienced between management groups and facility owners. Moreover, increased competition, progressive and advanced media formats, and platforms as well as an evolved customer base with new demands and expectations challenge IMGs business model for its tournament creation division. However, the company should continue to invest in this division owing to the benefits it offers. However, it should incorporate modern technology, and work towards fulfilling new customer demands and expectations to be able to stay relevant, lucrative, and competitive. 

Production and broadcasting

The television division at IMG is one of the greatest production and distribution agencies for sporting events globally. In addition, TWI also produced and broadcasted documentaries, entertainment, and music programming. The division has added value for the broader IMG group by giving it the needed exposure and reach. With global, active penetration and the ability to deliver multiple sporting events to sporting fans worldwide, the division has helped in building a global and loyal customer base as well as led to an influx of clientele for the group.