Archive for July, 2010

Patrick van der Pijl intrigued me so much with his idea about a Visualized Business Model FIFA that I have started to research the main parties involved in this most important project: the South Africa World Cup 2010. There are a number of major interested parties participating in the project: FIFA, FIFA confederation members, and the South African government. Each of these main parties has contributed some parts to the jigsaw that, when assembled, forms the South Africa WC 2010 project business model. I think that we can find elements of business models combining in each of those major business models. Without the collaboration of all the interested parties, it’s impossible to imagine the creation of such an important event.

Of course, FIFA has been the most important player in constructing this fantastic value network. In the comments that follow, I will focus only the most important participants, such as the FIFA confederation, its member associations, and the South African government.  However, there have also been many more organizations’ business models which have been influential and have helped make the project a success: hundreds of merchandizing companies, clubs, pubs, and schools, to name but a few. In return, the South Africa WC 2010 business model helps those organizations’ business models – a win-win situation.

The South African World Cup 2010 (SAWC 2010) business model  is integrated with and dependent on the business models of FIFA, the FIFA confederation members association and the South African government. The Fifa business model contributes marketing, organizational, and legal licence support services for the South African World Cup 2010 business model. Fifa has effective distribution channels to target advertisers, soccer fans, sponsors, TV stations, banks, and soccer teams. It also has effective customer relations through some social media sites and the FIFA Awards. FIFA is in charge of all World Cup tournaments and is therefore the most important link in the WC business model chain.

The FIFA confederation member associations (FCMA) business model contributes the world’s best national teams, whose soccer players are the most important  tournament resource. Exciting matches featuring world-famous football stars are the magnet that draws an audience to watch soccer on TV and to visit South Africa and attend the matches there. The FCMA business model incorporates soccer fan associations which can organize local broadcast venues (pubs, restaurants. etc.). They help to promote soccer and SAWC 2010 at a local level, and they promote merchandising in the FCMA countries.

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The third business model which contributes elements into the SAWC 2010 business model is that of the South African government. The South African government Business Model (SAGBM) contributes an appropriate and reliable infrastructure for the tournament. Stadiums are the most important and most expensive investment for the South African government, which also provides appropriate transport and the necessary information/communication infrastructure. Moreover, it has to assure safety by supplying security.

The South African World Cup 2010 (SAWC 2010) business model can access FIFA’s business model services for a fee, and in return gets income from tickets sales, merchandise license fees, advertising & sponsoring, and TV & radio license fees.

SAWC 2010 allows the FIFA confederation member associations (FCMA) business model to promote soccer players, national teams, soccer on national level, and countries the national teams come from worldwide. The national teams all get WC compensation fees.

The South African government benefits from SAWC 2010 by the extensive worldwide promotion of the country, the new infrastructure required for the games, the increase in  business activity, the income from taxes, and the growth of tourism. The South African World Cup 2010 (SAWC 2010) gathers together millions of soccer fans and presents unforgettable matches. These matches inspire people of all ages, races, and genders  to go out and play the sport. Soccer also gives hope to countless poor people in underdeveloped countries when they see role models such as Pele and Maradonna, both of whom used the sport to escape from poverty.  SAWC 2010 provides an marvellous opportunity to combine business models of existing business or start-ups.

The South African World Cup 2010 (SAWC 2010) is great case of business model combining which can help businesses in so many ways at different levels.

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Business Model Canvas, Osterwalder, Pigneur & al. 2010, CC BY-SA 3.0.

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I find the news into FastCompany about the service into Ford Sync Vehicles which enabledusers to send destinations from Google Maps to their vehicles using a “send” menu on the Maps site. Google calculate optimal route with the traffic on the streets for free. Ford has been first car company that enable this service for free.

When I analysed business models of Ford and Google I recognised interesting value network which is result of combining of Ford and Google business models. I think that Ford decided for new solution because Ford want to create value proposition of unique and better recognized Vehicle. Ford collaboration with Google opens the doors to many potential customers which used Google services all over the world. Ford could have high benefits from Google distribution channels which guide Ford value proposition to the target customers. Ford can also use various Google tools for customer relations.

We can expect many business models combining which will give us user’s friendly services and products in automotive industry. What do you think?

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Business Model Canvas, Osterwalder, Pigneur & al. 2010, CC BY-SA 3.0.

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