Essay: What cultural factors must US sports franchises overcome to increase popularity abroad?

The first factor to consider is the familiarity of the sport of the target country. Do they know the nature of the sports? For example, in the UK, football is very different from the football we have here in the US. If ever we wanted to expand or to increase popularity, we should analyze the market to see if there are some fan bases on the sport we’re expanding. I believe fan base is the critical component of the sports franchise to succeed or to gain popularity abroad. How do we know if we established fan base? By hosting exhibition games will let us know the market for the sport. Like the NFL for example, they have been playing in London’s Wembley Stadium for the past seven years since 2007. According to (Murphy, 2012), ‘If a franchise was to touch down in London, its success would hinge on the following it attracts ‘ something the league has been trying to build since the first regular season match between the New York Giants and the Miami Dolphins drew a crowd of 81,000 to Wembley in 2007. But the figures are promising. According to the NFL, there is a fan base of 11 million in the UK, which represents a 32% increase in the last two years.’ Not only on ticket sales NFL profited, television broadcast also added to the NFL’s revenue, (Murphy, 2012) ‘Television numbers are also on the rise, with Sunday games showing a 154% increase in viewers, while the amount of people watching the showpiece Super Bowl has gone up by 74% since 2006.’ These figures show that NFL games in London have gained popularity over the years and Wembley will continue to host NFL games until 2016 and the Jacksonville Jaguars will be playing home games in London for the next four years.
How can franchises ensure their products are appropriate for international markets?
Prior to venturing internationally, we may need to ask ourselves some question if we are ready for the international market. Does our franchise system stable or has a proven infrastructure in the domestic market? Will this system work in the foreign market? (Rose, 2013), ‘Once a franchisor decides to seriously look at international expansion; they will need to decide the best market to aim for.’ First and foremost is to do their homework or research for the country they need to penetrate. According to (Dolman, 2012) ‘Franchisors also need to fully educate themselves about their target country, local market research, due diligence should include understanding the requirements of the legal system.’ There will also be a need to visit the countries being considered and spend time and resources to study the culture. As per (Pipes), ‘Franchise representatives need to visit the countries they are considering moving into and devote time and resources to studying these cultures very carefully.’ Possibly the most important to be successful internationally is finding the right partners or companies willing to venture. This is the primary component with respect to achieving long term success, (Pipes), ‘One of the most critical components of successful international franchise expansion is finding the right partners. This is a key ingredient to long-term success and profitability for the franchise brand.’
Should governments protect their industries by placing tariffs on imported products?
Tariff in the simplest form is a tax. Why should we impose tariffs on imported products? We imposed tariffs on imported products to prevent other countries from dumping their goods to our country and protecting consumers and our domestic industries that produced the same goods. This scenario could threaten domestic employment. According to (Radcliffe), ‘The levying of tariffs is often highly politicized. The possibility of increased competition from imported goods can threaten domestic industries. These domestic companies may fire workers or shift production abroad to cut costs, which means higher unemployment and a less happy electorate.’ Tariff also causes the prices increase in foreign goods. (Radcliffe), ‘Because of this, domestic producers are not forced to reduce their prices from increased competition, and domestic consumers are left paying higher prices as a result.’ Another trade barrier we impose that seems important is with regards to the defense industry involving National Security. (Radcliffe), ‘Barriers are also employed by developed countries to protect certain industries that are deemed strategically important, such as those supporting national security. Defense industries are often viewed as vital to state interests, and often enjoy significant levels of protection.’