Indian softdrink business

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McMahon’s strategy which achieved the WWF to dominate the sport entertainment business was merely perfect. His use of medias were excellent and effective. His creativity to diversify wrestlers to be more than just an entertainer on the stage was innovative. This because he was trained by his father who had gain experience in major city where competition is intense. Moreover, he had direct experience with manipulating audience while he was a ring announcer. But the biggest mistake of McMahon was that he abandoned the Georgia territory even though he knew that Ted Turner was trying to enter to the business.

From case study of Coca-cola entered Indian softdrink business, Coke failed to be the best seller in Indian market. However, Coca-Cola decided to buy a local manufacturer, Thump up who dominate the market. Even Coke could not take “Thump up” to its back seat, but Coca-Cola could get access to dominate the market and worsen the environment for competitors to enter the market vis-a-vise the remaining of the WWF in the Georgia territory. Fortunately, McMahon did not do so providing a chance for Turner to establish the WCW.

At fist 5 years, the WCW could not succeed the competition despite the funding from TBS. Eric Bischoff was a tough competitor for McMahon. Interestingly, both of them had same background, ring announcer and promoter. Presumably, Bischoff would have well understanding of audiences’ wants as well as McMahon. And Bischoff would be able to understand and analyse the strategies McMahon had used to succeed the business before. So, duplicating those strategy would not be a problem. Bischoff could do better than just copy, he smartly attacked the weak point of the WWF.

The strength of the WCW was enomouse budget, Bischoff used this to recruit the WWF’s superstars who, at that time, struggling with the government’s investigation about steroid abuse. The WWF could not offer a better deal to its wrestlers, as a result, superstars gradually desert to the WCW. This might show a vision in Human Resource Management of Ted Turner to properly choose a leader for his business. Contract with Bret Hart was extremely important for the WWF at that time, however, the condition seemed to be financially underestimated.

Only 3 out of 20 years in the contract for Hart to wrestler in the ring was not proportional. After the tenth year out of the ring, Hart would hardly affect fans. Soon or later, this contract would cause financial conflict between Hart and McMahon. McMahon also changed Hart’s character after signing the contract just because of gaining in popularity of Steve Austin. A hero like Hart were forced to be a villain so that Austin can replace McMahon was not a safe plan. Hart was not necessary to be a villain, the WWF can have hero more than one.

McMahon could form team Hart and Austin together, creating double popularity. Hart’s fans were remained, while a number of fans are increasing by Austin’s popularity. But what McMahon did was decreasing Hart’s fans and increasing Austin’s fans, the number of fans might end up at the same number. Release Hart to the WCW This situation affect the WWF’s wrestlers in no small way. Morale of the wrestlers might decrease, doubting that the WWF could no longer compete with the WCW. Then, after their contract expires, the first thing they might consider would be joining the WCW rather than the WWF.


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