1. How would you describe WWE's corporate-level strategy?

2. What innovation strategies did Vince McMahon use to grow WWE?

3. What resources does WWE have and how valuable are they?

4. What are the future prospects for WWE?

5. What should be done to expand or grow the business?

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CASE 5 WORLD WRESTLING ENTERTAINMENT At its annual WrestleMania event in 2019, World Wrestling Entertainment will feature female wrestlers for the first time. WWE Chief Brand Officer Stephanie stated that the fans demanded the firm put women front and center. The move represented yet another attempt by WWE to deal with the growing competition from different forms of mixed martial arts, which represent a free-for-all of boxing, ju-jitsu, and wrestling, among other disciplines. Ultimate Fighting Championship has been expanding around the world, while ONE Championship has been stealing markets in Asia by building up local fighters in each of its markets. WWE does not have much to worry about in the short run (see Exhibit 1). Its goal of coupling its live wrestling matches with programming on television, on the web and on mobile devices, has allowed it to become one of the world's most social brands. The firm recently announced a partnership with Roblox, a global platform that brings more than 80 million people together through play. It will allow players on Roblox to become one of their favorite WWE superstars by downloading their characters. "We are always Developing a Wrestling Empire looking for fun, imaginative ways to engage our fans across a variety of platforms," said Jayar Donlan, Executive Vice President of WWE Advanced Media. All of these achievements clearly indicate that WWE has moved out of a slump that it had endured between 2001 and 2005. During the 1990s, Vince McMahon had used a potent mix of shaved, pierced, and pumped-up muscled hunks; buxom, scantily-clad, and sometimes cosmetically enhanced beauties; and body-bashing clashes of good ver- sus evil to build an empire that claimed over 35 million fans. Furthermore, the vast majority of these fans were males between the ages of 12 and 34, representing the de- mographic segment that makes most advertisers drool. Just when it looked like everything was going well, WWE hit a rough patch. Its attempt to move beyond wrestling to * Case prepared by Jamal Shamsie, Michigan State University, with the assistance of Professor Alan B. Eisner, Pace University. Material has been drawn from published sources to be used for purposes of class discussion. Copyright 2019 Jamal Shamsie and Alan B. Eisner. EXHIBIT 1 Income Statement ($ millions) Net Revenues Operating Income Net Income Source: WWE Annual Report. 2019* other sports and entertainment was not successful. It failed with its launch of a football league during 2001, which folded after just one season. WWE has not done much bet- ter with its foray into movies that would use some of its wrestlers. The firm was also struggling with its efforts to build new wrestling stars and to introduce new characters into its shows. Some of its most valuable younger viewers were also turning to new reality-based shows on television such as Survivor, Fear Factor, and Jackass. Since 2005, however, WWE has been turning pro wres- tling into a perpetual road show that makes millions of fans pass through turnstiles in a growing number of locations around the globe. Its flagship television programs, Raw and Smackdown! are broadcast in over 30 languages in 150 countries reaching 36 million viewers around the world. WWE has also been signing pacts with dozens of licensees- including one with toymaker Mattel-to sell DVDs, video games, toys, and trading cards. C20 CASE 5 :: WORLD WRESTLING ENTERTAINMENT 2019 Most of the success of the WWE can be attributed to the persistent efforts of Vince McMahon. He was a self- described juvenile delinquent who went to military school as a teenager to avoid being sent to a reformatory institu- tion. Around 1970, Vince joined his father's wrestling com- pany that operated in Northeastern cities such as New York, Philadelphia, and Washington, DC. He did on-air commentary, developed scripts, and otherwise promoted wrestling matches. Vince bought the wrestling firm from his father in 1982, eventually renaming it World Wrestling Federation. At that time, wrestling was managed by regional fiefdoms where everyone avoided encroaching on anyone else's territory. Vince began to change all that by paying local television stations around the country to broadcast his matches. His aggressive pursuit of audiences across the country gradually squeezed out most of the other rivals. "I banked on the fact that they were behind the times, and they were," said Vince. 2018 $930.2 114.5 99.6 2017 $801.0 75.6 32.6 2016 $729.2 55.6 33.8 2015 $658.8 38.8 24.1 2014 $542.6 (42.2) (30.1) CASE 5 WORLD WRESTLING ENTERTAINMENT At its annual WrestleMania event in 2019, World Wrestling Entertainment will feature female wrestlers for the first time. WWE Chief Brand Officer Stephanie stated that the fans demanded the firm put women front and center. The move represented yet another attempt by WWE to deal with the growing competition from different forms of mixed martial arts, which represent a free-for-all of boxing, ju-jitsu, and wrestling, among other disciplines. Ultimate Fighting Championship has been expanding around the world, while ONE Championship has been stealing markets in Asia by building up local fighters in each of its markets. WWE does not have much to worry about in the short run (see Exhibit 1). Its goal of coupling its live wrestling matches with programming on television, on the web and on mobile devices, has allowed it to become one of the world's most social brands. The firm recently announced a partnership with Roblox, a global platform that brings more than 80 million people together through play. It will allow players on Roblox to become one of their favorite WWE superstars by downloading their characters. "We are always Developing a Wrestling Empire looking for fun, imaginative ways to engage our fans across a variety of platforms," said Jayar Donlan, Executive Vice President of WWE Advanced Media. All of these achievements clearly indicate that WWE has moved out of a slump that it had endured between 2001 and 2005. During the 1990s, Vince McMahon had used a potent mix of shaved, pierced, and pumped-up muscled hunks; buxom, scantily-clad, and sometimes cosmetically enhanced beauties; and body-bashing clashes of good ver- sus evil to build an empire that claimed over 35 million fans. Furthermore, the vast majority of these fans were males between the ages of 12 and 34, representing the de- mographic segment that makes most advertisers drool. Just when it looked like everything was going well, WWE hit a rough patch. Its attempt to move beyond wrestling to * Case prepared by Jamal Shamsie, Michigan State University, with the assistance of Professor Alan B. Eisner, Pace University. Material has been drawn from published sources to be used for purposes of class discussion. Copyright 2019 Jamal Shamsie and Alan B. Eisner. EXHIBIT 1 Income Statement ($ millions) Net Revenues Operating Income Net Income Source: WWE Annual Report. 2019* other sports and entertainment was not successful. It failed with its launch of a football league during 2001, which folded after just one season. WWE has not done much bet- ter with its foray into movies that would use some of its wrestlers. The firm was also struggling with its efforts to build new wrestling stars and to introduce new characters into its shows. Some of its most valuable younger viewers were also turning to new reality-based shows on television such as Survivor, Fear Factor, and Jackass. Since 2005, however, WWE has been turning pro wres- tling into a perpetual road show that makes millions of fans pass through turnstiles in a growing number of locations around the globe. Its flagship television programs, Raw and Smackdown! are broadcast in over 30 languages in 150 countries reaching 36 million viewers around the world. WWE has also been signing pacts with dozens of licensees- including one with toymaker Mattel-to sell DVDs, video games, toys, and trading cards. C20 CASE 5 :: WORLD WRESTLING ENTERTAINMENT 2019 Most of the success of the WWE can be attributed to the persistent efforts of Vince McMahon. He was a self- described juvenile delinquent who went to military school as a teenager to avoid being sent to a reformatory institu- tion. Around 1970, Vince joined his father's wrestling com- pany that operated in Northeastern cities such as New York, Philadelphia, and Washington, DC. He did on-air commentary, developed scripts, and otherwise promoted wrestling matches. Vince bought the wrestling firm from his father in 1982, eventually renaming it World Wrestling Federation. At that time, wrestling was managed by regional fiefdoms where everyone avoided encroaching on anyone else's territory. Vince began to change all that by paying local television stations around the country to broadcast his matches. His aggressive pursuit of audiences across the country gradually squeezed out most of the other rivals. "I banked on the fact that they were behind the times, and they were," said Vince. 2018 $930.2 114.5 99.6 2017 $801.0 75.6 32.6 2016 $729.2 55.6 33.8 2015 $658.8 38.8 24.1 2014 $542.6 (42.2) (30.1)