Llop-gestió de l'esport
Until 2011, the growth of Llop Gestió de l'Esport had been spectacular, with annual increases in revenue of nearly 80%. In 2012 and 2013, however, growth rates had stagnated and an increase of barely 10% was expected at the close of 2014. The figures reflected the state of the market: the public administration had announced very few tenders and competition was increasingly intense. Depending on public tenders implied a model that was unscalable, restricted and unsophisticated. Paradoxically, however, Llop Gestió de l'Esport owed its existence to that model. The company had evolved toward increasingly sophisticated service-delivery capacities, a path that seemed natural and healthy for the company, but which was now coming up against the reality of cutbacks and budget restrictions.
How should they respond given the situation? Could the company compete in this environment with its current business model or should it tackle making the changes that seemed necessary?
Collection: IESE (España)
Ref: M-1341-E
Format: PDF
Number of pages: 23
Publication Date: Feb 15, 2016
Language: English, Spanish
Description
Until 2011, the growth of Llop Gestió de l'Esport had been spectacular, with annual increases in revenue of nearly 80%. In 2012 and 2013, however, growth rates had stagnated and an increase of barely 10% was expected at the close of 2014. The figures reflected the state of the market: the public administration had announced very few tenders and competition was increasingly intense. Depending on public tenders implied a model that was unscalable, restricted and unsophisticated. Paradoxically, however, Llop Gestió de l'Esport owed its existence to that model. The company had evolved toward increasingly sophisticated service-delivery capacities, a path that seemed natural and healthy for the company, but which was now coming up against the reality of cutbacks and budget restrictions.
How should they respond given the situation? Could the company compete in this environment with its current business model or should it tackle making the changes that seemed necessary?
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Year: 2014
Geographic Setting: España
Learning Objective
To analyze the sports facility management sector and the effect of the entry of new nonspecialized players who force prices down, and to evaluate options for the future: diversification, price management and the low-cost model.
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"Llop-gestió de l'esport"
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