versus resting entirely on just one star of the team. Also, knowing that they will be part of a star-studded team incites players to join Real Madrid, as they will be taking a step forward in their careers, and will gain prestige and satisfaction as soccer players. In competing for talents, new potential market participant found Real Madrid prestige as an obstacle, since the players chose to stay instead of transferring to new teams that lacked “historical and institutional foundation of a club such as Real Madrid”.
After reviewing this case I think it is safe to say there is a lot more that goes into owning and running a business, let alone a world-renowned soccer club. After being elected as the President of Real Madrid, Perez had to make a lot of decisions that could have been deemed questionable compared to the structure of other soccer clubs. We also learned that the business model is a very useful tool when trying to figure out the foundation on which your business is built. We found that one of the most important aspects of the business models was the value proposition and the customer relationships. In order to have good customer relationships it is necessary to have multiple value propositions to support it. We also learned that if you took one part of the business model away from the whole, then the entire plan fails. Value propositions wouldn’t be possible if there weren’t key activities that are driving them, and the multiple customer segments that are trying to be reached would fail without the appropriate channels. This case was a great way to dissect the aspects of an entire business and evaluate the value that is trying to be sold.
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- Spring '16
- Real Madrid C.F., Real Madrid