NASCAR

free essayEstablished in 1947 by “Big Bill” France, the National Association for Stock Car Auto Racing (NASCAR) is a sanctioning body that is responsible for determining the rules of professional stock car racing as well as ascertaining the qualifications for any ancillary groups willing to compete in the races. In addition, the NASCAR’s sanctioning duties incorporate vehicle inspection, which is performed prior to each race in order to ensure that the cars adhere to the specifications; officiating goals; and creating policies called to enhance the safety of the race car drivers.

Despite the fact that NASCAR grew to become a multi-billion dollar industry and the second largest spectator sport in the USA,  the association definitely failed to observe future trends in the car racing industry, and consequently, did not appropriately plan for the variety of changes. Therefore, Turner took advantage of NASCAR’s lack of information in digital trends by monetizing NASCAR’s digital assets, leaving the sanctioning body vulnerable in terms of digital innovations, with a potential risk of losing its adherents. Although NASCAR’s decision to contract Turner in order to drive its digital presence was strategic, this initiative was deleterious to its business as well as to the racing association. Specifically, it prevented the latter from remaining relevant in the current era of digital transformations. Therefore, NASCAR should initiate strategies that would enable it to revamp its presence in the digital milieu.

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The Root Cause Behind NASCAR’S Recent Disappointment with how Turner has Managed NASCAR Digital Rights

Unaware of the benefits of the digital platform at that time, NASCAR entered a negotiation that saw the association transfer its digital rights to Turner sports in 2008. However, this transaction worked against NASCAR as it became unable to sell the car racing sport via social platforms such as Facebook and Twitter, as this is the common method other sport companies are utilizing. Therefore, NASCAR is now facing unfavorable competition from other sports such as boxing and baseball, which are primarily targeting their fans through social media platforms. Similarly, the failure to effectively engage in digital activities has emaciated NASCAR’s position, especially among the youth who are fascinated by internet activities as opposed to alternative forms of interaction. Contrary to NASCAR’s projection, the younger generation tend to enjoy computerized car racing games rather than real racing events organized by NASCAR.  In light of the above, NASCAR authorities are aware of the fact that the Turner’s mishandling of its digital rights has seen the sports association lose a substantial amount of revenue. For example, the contractual terms between NASCAR and Turner are disadvantageous to NASCAR and prevent the association from running any social media campaign independently. This situation apparently limits NASCAR’s internet operations, which results in the deprivation of fans to other digitalized sports.

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Different Ways NASCAR Can Resolve the Problems

Since NASCAR has previously been known as experiencing communication problems, it should consider implementing strategies that will enable the association to immediately reengineer its business model. Primarily, NASCAR must cease its engagement with Turner forthwith and establish an effective marketing communication department that will ensure that NASCAR thoroughly targets its youth market. In order to achieve this, the association must remodel its strategy through the application of effective web-based networking technologies such as Facebook, Twitter, and Pinterest. Secondly, due to the radical demographic shifts threatening NASCAR’s existence, the sanctioning body should develop a clear vision for digital and social media success in order to maintain its adherents and stimulate interest in the sport through social networks and mobile applications.

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Conclusion

To summarize, ensured success in any field in the current global trend entails embracing changes by the companies. Conforming to change enables the company to remain in the competitive markets despite prevailing challenges. Conversely, the failure to project future trends and plan adequately threatens the existence any business despite its previous success. Similarly, the inability to recognize the importance of digital space proved to be antagonistic to NASCAR because the association was unable to effectively utilize social media to achieve its core commercial objectives. However, with appropriate strategies, NASCAR could succeed in returning to their initial competitive position.