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Tough Mudder

Solution Id Length Case Author Case Publisher
2134 1530 Words (10 Pages) Sara Rosenthal, George Foster Stanford Business School : E464
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Social distancing seems to be a partisan issue and there are certain states and economies that are likely going to allow these races to go forward sooner – as an example the Supreme Court of Wisconsin just shot down the Governors stay at home order in a very partisan decision in which many critics felt that the court was legislating from the bench.(Leblanc, 2020). Many countries have imposed travel bans and lockdowns as a result of the epidemic which has raised uncertainty and would limit the ability of race companies to plan forward (The Express Tribune, 2020). Also United States ban on travel would also have repercussions for the race companies operating in the country (Centers for Disease Control and Prevention, 2020).

Following questions are answered in this case study solution:

  1. Conduct a PESTELI analysis and provide a few key issues from some of these external components (1-2 specific data points for at least 3 of the components). These findings include trends and factors that impact all players in the endurance/obstacle race industry. Include sources. This will require external research.

  2. Complete a Porter’s Five Forces analysis for Tough Mudder’s sub-industry. Remember that a P-5 is on the industry surrounding a firm and not just on the specific firm. Use the P-5 Information guide posted on the MyCourses to help you assess each factor to determine the high/low rating for each. List out the factors which make it more or less competitive. Determine the overall attractiveness for the industry/sub-industry).

Case Study Questions Answers

ii. Economic Factors

Amid coronavirus concerns, there has been a reduction in travelling across United States, which has caused race companies to cancel most of their international events to stay in line with the local government policies and requests and with the advices given by the WHO. Tough Mudder cancelled its Virginia event but will proceed with its 2020 North America season. Hence, this indicates lower revenue for the businesses in the industry. 

However, the US dollar has still increased despite the pandemic outbreak which would help in raising the real revenue generated (The Straits Times, 2020). Because the race companies host international events, they will benefit from the strong dollar, however as a result of this they might see a decline in the number of participants in their events as the participants would be required to pay a higher fee in dollar terms.

iii. Social Factors

The young generation is more inclined towards adventurous activities indicating a rise in adventure tourism. Hence, race companies offering extreme obstacle event fit well with the changing preferences of the young adventurers and thrill seekers who travel across the world in search of challenges with willingness to spend more (World Tourism Organisation, 2014). 

The race companies are now focusing on extensive digital media presence which has enabled them to better reach their target audience and focus on creating new obstacles and developing course design plays an important role in meeting customer expectations as people like engaging in survival challenges as well as measure their fitness and share their achievements on social media (Azfar, 2017). Also, it has made its events charitable by collaborating with Wounded Warrior Project and Tea Rubicon creating a social appeal for its event consistent with the customer trends (Tough Mudder, 2020a). 

iv. Technological Factors

With the rise in technology, people have become more tech savvy. Most of the industries across various sectors have evolved to keep up with the changes in the technology, which have penetrated into the race industry as well. Also, using of tech to improve customer satisfaction has become a norm in most of the race industries. Savage Race for example made use of facial recognition technology to be able to capture the moves by the savage race participants at their best moments, thereby capturing the customer experience and ensuring a higher degree of customer satisfaction (Sweatworks, 2018). 

Similarly, Tough Mudder has also made use of technology to refine its participant’s experience which are growing exponentially on a daily basis as it provided a tech kit for its participants with all sorts of technology to facilitate them during their endurance race. Its fitness tracker allows the participants to keep a track of their heart rate and monitor the timings and its Go Pro Hero Session camera would allow them to capture their best moments in the most extreme situations, together with its fabric tech socks, which make use of T2 technology and its smart shoes to allow participants to smoothly finish their race (Bell, 2017). Hence, it is necessary to make use of latest technological gear to be able to attract participants across the globe and improve their overall experience

v. Environmental Factors

People are increasingly growing aware of the environment and the social community. Race companies are therefore extensively involved in community building activities. However, because the race course might influence the external environment and cause disruption, environment protectionist might argue that it might result in littering, high level of pollution and adverse impact on the wild life and not to forget the harm that mud and the stagnant water that causes to human beings through various sorts of infections as well as infect the overall environment (Hamblin, 2014).

vi. Legal Factors

The legal regulations governing the industry are few as it is at its growth phase. There are no imposition in terms of safety regulations giving the companies in the industry to set their own regulations and ways of working.

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