Working out Alternatives for Frontier Adventure Racing and Its Challenges - Case Study Example

Working Out Alternatives for FAR History of Adventure Racing Adventure racing could be referred to as a mixed eventof teams, or an expedition that mainly uses stopwatches. The competition mainly aims at being the first team to get all racers to the finishing line in unison (Vahlne and Neil 24). The competition also entails competitors having to travel through the wild, with no outside sources of help. The teams in the sport therefore, have to find ways and means that they will use to get through the competition. They, for instance, have to identify the route to use, the tools, the speed at which they will travel in and the food to eat. As a safety precaution, the teams are provided with emergency radios when there is need to report cases such as loss or being hurt among the team members. Information such as the starting point of the race is usually given a day before the event (Kumar, Petersen and Robert70). The team members therefore, have to find means to get through and survive as fast as possible. Adventure racing has its roots in a race set in New Zealand, in the year 1980. The wilderness endurance racing was started when one person accidentally overheard a conversation between Americans to create a wilderness challenge. The History of FAR FAR was founded by Dave Ziestma in the year 1998. In a span of three years, FAR’s ‘raid the north’ series served as an introduction to adventure racing to several Canadians. It also became included in the list of the top race series in North America (Lewis 536). FAR’s races were termed as difficult (Holland and Jackie 248). Of the teams sent out, only about 25% would make it to the finishing line intact and in time. The founder of the race, Zietsma, would usually take part in the race. As a result, many got assured that the race would be safe. His involvement in the race as a top competitor also aided in making the name of the company, making it be at the forefront. Challenges Facing FAR Frontier Adventure Racing (FAR) is a popular firm in the North Racing series. The organization has been popular among lovers of adventure racing. Adventure racing may take the definition of a race of individuals using vehicles over some terrain. The event is multi-sport, non-stop and with a mixture of teams. It is therefore essential for team members to ensure that they cross the finish line first and in time. The event borrows from kayaking, mountain biking and running. Its popularity grew in New Zealand, Australia and in Europe. Therefore, in the last decades, the event has attracted media attention as well as many players. In retrospect, FAR one of the players of Adventure racing faces the challenges of inadequate revenue and from the influence of competitors. The company’s management predicts the company will continue making losses (Holland and Jackie 248). This influence has an impact of the return on investment value of the organization (R.O.I) External Environment analysis In analyzing the external environment of FAR various aspects influence organizational performance. First FAR sponsors act as the first influence to the organizational revenue collection. Sponsors have been important in adding value to the organization due to their financial contribution to Racing events. On the other hand, local governments as well as national governments have an implication on firm’s operation (Hoang and Frank 739). It also comes into perspective that environmentalist have an influence on the organization. Environmentalists have an influence on the choice of the routes for the races. Their sentiments ensure that racing events does not influence the environment negatively (Vahlne and Neil 24). On the hand, customers have an important role to play on the success of the firm. Customers purchase tickets to racing events adding value to the revenue of FAR. An analysis on the revenue of FAR, reveals that the organization provides tickets affordable to every individual. The company’s president Zietsma maintains a low-ticket cost of $1,400 and $4,200 per team. The first price represents a 36-hour race while the next price concentrates on extreme race events. In comparison to other events within the region, FAR rate ranks low. British Colombia races and other races rate at $2000 for the 36-hour race and $5000 to $9000 for extreme races. Other races have higher costs due to increased costs translating from hiring of vehicles, staff and in renting equipments. Other related expenses that make the firm unique to competitors are that it does not incur the costs translating promotional materials as well as on translators to other languages. Internal Analysis The strength of FAR in the market lies on its marketing strategies, influence of sponsors and on its staff. The organization has been influential in the market through the provision of Adventure training seminars. The training facilities have been instrumental in moving crowds since customers are able to experience racing at their pleasure. Such events take place during periods when there is no racing. On the other hand, members of staff in organizations provide basis for better management of facilities. FAR over the years has struggled to maintain an effective staff level despite high turnover rates. In managing organizational aspects, the racing organization utilizes work aspects of volunteers, workers as well as volunteers. Other internal strengths come from the marketing campaigns of the organization. FAR also has an effective logistical team, team of marketers and internal sponsors. The other aspects of strength to the organization include financial changes due to the influence of sponsors (Kumar, Petersen and Robert70). Sponsors have been influential in transforming FAR into a formidable force in the market thus improving its ranking. Solutions to overcoming Problem FAR undergoes challenges in terms of the influence of competition and low Revenue levels. In order to overcome competition the organization would need to develop a competitive strategy. The approach will start with the identification of key competitors in the market. FAR will then have to develop a niche and provide their best effort to it (Lewis 539). The next step on the strategy involves the organization striving to provide unique services. Further, it would be imperative for the organization to build a brand different from its competitors. The next step to improving the competitive position of the industry would be upgrading the marketing strategies of the organization. The organization might utilize social media to their advantage as well a print and media (Lewis 536). Considering the problem of revenue to the organization, the management team might solicit for funds from other sponsors. The team might fulfill this through developing of advertisements that entice sponsors into the project. Best Alternative It is observed that the main challenge to FAR is the influence of low budget and revenue on racing activities. To limit this organization is justified in looking for sponsors to fund future operations. It is also imperative to realize that revenue challenges occur from poor management of projects derivatives (Hoang, and Frank 736). Therefore, it is imperative for the management team of the organization to develop strategies in overcoming financial budgeting and forecasting. Then it becomes necessary that the organization utilize software in management of budget. Such front needs to be user-friendly and value the needs of customers. Conclusion FAR, as an adventure racing company faced several challenges, as well as, successes. At some point, the company had won so much trust from the people; it was considered the most significant race in Canada. FAR, also had awesome products, like, a strong global reputation for setting up good races (Hoang, and Frank 736). The company was also recognized where other adventure races were involved. The contributors to the achievement of the company were such as the participation of the founder in the races. The racing company would also be awarded a period of coverage in the media, which boosted its popularity and growth (Lewis 536). FAR as a company made quick sales in its products. The company was however faced with the challenge of diminishing profits, for close to four years in a row. This shows that the quick sales never contributed to the profit- making of the company. For most of the events FAR would require boosting by sponsorships, or additional funds. In the first four years, the diminishing resources (Hoang, and Frank 736) threatened the company. Zietsma, had already considered stopping it an option. The TV coverage of the races, however, came as an aid to the company acquiring sponsorships. The coverage would also assist in making the sport more visible. The coverage would enable it to sell beyond the borders of Canada. TV coverage therefore came as important tool to making FAR come back on its feet again. Works Cited Kumar, V., J. Andrew Petersen, and Robert P. Leone. "Defining, Measuring, And Managing Business Reference Value." Journal Of Marketing 77.1 (2013): 68-86. Business Source Complete. Web. 29 Sept. 2014 Lewis, Michael. "Individual Team Incentives And Managing Competitive Balance In Sports Leagues: An Empirical Analysis Of Major League Baseball." Journal Of Marketing Research (JMR) 45.5 (2008): 535-549. Vahlne, Jan-Erik, and Neil Hood. Strategies In Global Competition : Selected Papers From The Prince Bertil Symposium At The Institute Of International Business, Stockholm School Of Economics. London: Routledge, 2013.print Holland, Jennifer, And Jackie Weathers. "Aligning A Companys People Strategy With Its Business Strategy And Brand Strategy." Journal Of Brand Strategy 2.3 (2013): 245-258. Hoang, Ha, and Frank T. Rothaermel. "Leveraging Internal And External Experience: Exploration, Exploitation, And R&D Project Performance." Strategic Management Journal 31.7 (2010): 734-758. Read More