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 business permits to generate a new source of income but also to promote the team and to be more present in the life of the fans all around the world.
Thus, these sponsorships give an international image to ManUtd and permit to affirm its presence and popularity at the international scale.
Malcom Glazer managed to create more than a football club with his takeover. He created a real brand in order to be on all the boards.

Question 2
Discuss and explain how the different alliances can increase the competitiveness of ManUtd.

The competitiveness of ManUtd can increase thanks to alliances. The collaboration with Vodafone would have had generate £36 millions but the alliance ended in 2005. Vodafone also provided a wap-service for ManUtd, which permits to the fans to follow matches and new of the club online. It was a good service because it permitted to be closer to the fans at any moment.
Therefore, ManUtd began a new alliance with AIG as its new shirt sponsors. This new deal is supposed to generate $14,1 million a year during four years.
Also, the actual thirteen years-deal with Nike has to generate $527 million and advantages…...

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