BCCI Industry Analysis

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TABLE OF CONTENTS
Word Count: 9596
Board of Control for Cricket in India
Strategy Formulation and Implementation – Term
Project Instructor – Prof. Dr. Veeresh Sharma
Diwakar Verma
EXECUTIVE SUMMARY.................................................................................................................1
SPORTS INDUSTRY..........................................................................................................................2
BOARD OF CONTROL FOR CRICKET IN INDIA (BCCI)..........................................................4
BCCI DOMESTIC STRUCTURE AND TOURNAMENTS............................................................5
BCCI AND THE ICC..........................................................................................................................6
REVENUE GENERATION MODEL - BCCI...................................................................................7
THE EXTERNAL ENVIRONMENT ANALYSIS ON SPORTS INDUSTRY AND BCCI............9
THE GENERAL ENVIRONMENT...................................................................................................9
THE INDUSTRY ENVIRONMENT................................................................................................11
THE COMPETITOR ANALYSIS....................................................................................................16
THE INTERNAL ENVIRONMENT ANALYSIS ON BCCI..........................................................18
SWOT ANALYSIS.............................................................................................................................19
THE INTERNAL ANALYSIS MODEL...........................................................................................21
THE VALUE CHAIN ANALYSIS....................................................................................................23
BCG (GROWTH SHARE) MATRIX..............................................................................................24
RECOMMENDATIONS TO BCCI.................................................................................................25
CONCLUSION / TAKEAWAYS.......................................................................................................26
REFERENCES..................................................................................................................................27
B C C I S t r a t e g y A n a l y s i s P a g e | 1
EXECUTIVE SUMMARY
The analysis of BCCI’s Strategy is performed as a part of Sports Industry. BCCI is the cricket
governing body of India. BCCI is one of the richest boards in the world and has a large cash pile to
develop the game of cricket from the grass root level.
The strategic intent is found through The External Environment analysis including General, Industry
and Competitor Analysis. The Internal Environment is also looked into to perform the analysis.
The several tools and methodology used for analysis are PESTLE, Porters 5 forces model and
competitor analysis model for external environment analysis. Internal environment analysis is
performed through SWOT Analysis, Internal Analysis Model, Value Chain Model and BCG Matrix.
A thorough analysis is performed of the sports industry in India. How BCCI fares in the sporting
arena and how it governs the game of cricket in India. The various roles and responsibilities that the
BCCI adheres to perform its functions.
Apart from performing its duties BCCI generates huge amount of revenue. In the analysis below
various factors are found which help BCCI generate huge revenues and also the areas where the
money is spent by BCCI to develop the game of cricket.
Based on the analysis performed the BCCI’s strategy of generating revenue is understood and found if
there are any loop holes. Accordingly, the recommendations are made to BCCI to correct and take
care of few things which may help in generating more revenue and income.
B C C I S t r a t e g y A n a l y s i s P a g e | 2
SPORTS INDUSTRY
Historically, India has not been a sporting country. India's participation at the world events like
Olympic Games, Commonwealth Games & World events has always been there. But there have been
no outstanding performance at these events. There have been few bright spots but nothing of major
consequence have been achieved by India in these events. India has excelled in few sports like
Cricket, Shooting, Boxing, Badminton, Tennis and Wrestling in last few years. India has improved in
sports in last few years and there has been constant enthusiasm among citizens to join sports. Sports
help in maintaining good health and is also source of income for athletes/players.
Sports Industry – Global:
The figure below shows the Global Sports Industry Revenue of last 10 years (from 2006 - 2015). As
per the study conducted by PricewaterhouseCoopers Pvt Ltd the revenue from sports industry is
expected to grow to $ 145 billion in the year 2015.
The Exhibit 1 shows that there is continuous growth in Global Sports Market Revenue in the last 10
years and is expected to grow by a good pace in future as well. There is a slight loss in revenues
during the year 2015 but the industry grew at a much higher rate till 2014. Thus the Global Sports
Industry is growing at a considerable pace since last few years and is expected to do so in future as
well.
The revenue is generated by following means :
Sponsorship Rights.
Media Rights.
Merchandising Rights.
Gate Revenue.
Exhibit 1 Global Sports Market Revenue (in billions) Source : www.statista.com
B C C I S t r a t e g y A n a l y s i s P a g e | 3
Sports Industry – India:
The Indian sports industry size is small when compared to global market. It is expected to account for
about 1.3 per cent of the global revenues. The Indian sports business is expected to be $ 2 billion by
year 2015 with a growth rate of 3.7 % which is higher than global growth rate.
With the advent of several city based leagues the revenue of Indian Sports Industry is growing. These
leagues are in addition to the International and National level games played for the respective sports.
The leagues like Indian Premier League, Indian Super League, Hockey India League have given a
revenue model to the federations. The revenue generated is used for development of games at the
grass root level, providing better facilities to players/athletes.
There are several reasons for above normal growth of Sports industry in India. The major reasons are:
People have started realising the importance of sports in Nation Building.
The Sports is now considered a career option.
Major chunk of India's population is youth or middle aged who are interested in Sports.
Growth of income of middle class has led to more purchasing power of sport fans.
Infrastructure development throughout the country.
The Government policies which motivate people to join sports.
Confidence gained from hosting global events like Commonwealth Games, World Cup and
Formula 1 Grand Prix.
Availability of coaches at Grass Root level which nurture the skills required for a particular
sport.
Exhibit 2 India Sports Market Revenue (in millions) Source : www.statista.com
B C C I S t r a t e g y A n a l y s i s P a g e | 4
BOARD OF CONTROL FOR CRICKET IN INDIA (BCCI)
BCCI is the national governing body responsible for handling all cricket related functions in India. It
is registered as a Society under Tamil Nadu Societies Registration Act headquartered at Mumbai,
Maharashtra. The board was formed in 1928 from the Calcutta Cricket Club. Cricket as a game has a
rich presence in India since pre-independence days.
BCCI Mission Statement is "To nurture the growth of the hallowed game of cricket in India, to
preserve and promote the traditions of the game, to enable Indian Cricket teams to excel on the field
while displaying the highest ethics and values of the game.''
The BCCI has following responsibilities as the National Governing Body of the Cricket
Advance and control the game of cricket throughout India
Arrange and control inter-territorial, foreign and other cricket matches.
Make arrangements incidental to visits of teams to India, and to manage and control All-India
representatives playing within and outside India.
If necessary, to control and arrange all or any inter-territorial disputes.
To settle disputes or differences between Associations affiliated to the Board and appeals
referred to it by any such Associations.
To adopt if desirable, all rules or amendments passed by the Marylebone Cricket Club.
The BCCI works as consortium of various state associations. These state associations select their
representatives who further select the BCCI officials. Thus, the state association has to be recognised
and affiliated to BCCI in order to perform its cricket administrative functions in a particular state. Any
state or governing body not affiliated to BCCI is considered illegal as per BCCI constitution.
Internally BCCI has several committees which look into the different aspects of governing and
managing Cricket in India. These committees consists of different office bearers of BCCI, The office
bearers could be retired cricket players willing to be a part of administering the game of cricket in
India using their experiences of playing days. The other office bearers could be selected members of
state associations or honorary members of BCCI or different state associations.
The main committees of BCCI which help in administering the game of Cricket in India are :
Working Committee
Technical Committee
Selection Committee
Tour, Program and Fixture Committee
Finance Committee
Woman's Committee
Legal Committee
Ground and Pitches Committee
Discipline Committee
Anti Corruption and Security Committee
Umpires Committee
Affiliation Committee
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B C C I S t r a t e g y A n a l y s i s P a g e | 5
BCCI DOMESTIC STRUCTURE AND TOURNAMENTS
There are various types of domestic competitions present in India which are organized at various
levels like District, State and Zone etc. The most of these domestic cricket tournaments are conducted
under the supervision of BCCI. The state associations select teams from their respective states which
compete in the tournaments listed below. Thus these tournaments help to identify talent at a young age
and there develop cricket at the grass root level. The state associations get monetary and other inputs
from BCCI to compete in these tournaments. The tournaments are organised in 4 categories namely
Men's Cricket - Senior, Men's Cricket - Junior, Women's Cricket - Senior, Women's Cricket - Junior.
The players performing well in these tournaments are given a chance to either represent Indian Team
or other Indian Teams like India A team at the higher levels. Thus, the domestic tournaments help
identify talent at the grass root level. The list of all domestic tournaments conducted by BCCI are :
For Men's Cricket - Senior
oZ. R. Irani Cup
oN.K.P. Salve Challenger Trophy
oRanji Trophy
oVijay Hazare Trophy
oDuleep Trophy
oProf. D. B. Deodhar Trophy
oSyed Mushtaq Ali Trophy - Twenty 20
For Men's Cricket - Junior
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