University of Tennessee, Knoxville TRACE: Tennessee Research and Creative Exchange Masters Theses Graduate School 8-2008 Failure to Launch: A study into the North American Soccer League and the Women’s United Soccer Association and their factors of failures through Michael Porter’s Models of Strategy Formation Fraser John Boyd University of Tennessee - Knoxville Follow this and additional works at: https://trace.tennessee.edu/utk_gradthes Part of the Sports Studies Commons Recommended Citation Boyd, Fraser John, "Failure to Launch: A study into the North American Soccer League and the Women’s United Soccer Association and their factors of failures through Michael Porter’s Models of Strategy Formation. " Master's Thesis, University of Tennessee, 2008. https://trace.tennessee.edu/utk_gradthes/3668 This Thesis is brought to you for free and open access by the Graduate School at TRACE: Tennessee Research and Creative Exchange. It has been accepted for inclusion in Masters Theses by an authorized administrator of TRACE: Tennessee Research and Creative Exchange. For more information, please contact [email protected]. To the Graduate Council: I am submitting herewith a thesis written by Fraser John Boyd entitled "Failure to Launch: A study into the North American Soccer League and the Women’s United Soccer Association and their factors of failures through Michael Porter’s Models of Strategy Formation." I have examined the final electronic copy of this thesis for form and content and recommend that it be accepted in partial fulfillment of the equirr ements for the degree of Master of Science, with a major in Sport Studies. Dr. Damon Andrew, Major Professor We have read this thesis and recommend its acceptance: Dr. Lars Dzikus, Dr. Gi-Yong Koo Accepted for the Council: Carolyn R. Hodges Vice Provost and Dean of the Graduate School (Original signatures are on file with official studentecor r ds.) To the Graduate Council: I am submitting herewith a thesis written by Fraser John Boyd entitled “Failure to Launch: A study into the North American Soccer League and the Women’s United Soccer Association and their factors of failures through Michael Porter’s Models of Strategy Formation.” I have examined the final electronic copy of this thesis for form and content and recommend that it be accepted in partial fulfillment of the requirements for the degree of Master of Science, with a major of Sport Studies. Dr. Damon Andrew, PhD., Major Professor ___________________________________ We have read this thesis And recommend its acceptance: Dr. Lars Dzikus, PhD., Committee Member ___________________________________ Dr. Gi-Yong Koo, PhD., Committee Member ____________________________________ Accepted for the Council: Carolyn R. Hodges ________________________ Vice Provost and Dean of Graduate Studies (Original Signatures are on file with official student records.) Failure to Launch: A study into the North American Soccer League and the Women’s United Soccer Association and their factors of failure through Michael Porter’s Models of Strategy Formation. A Thesis Presented for the Master’s of Science Degree The University of Tennessee, Knoxville Fraser John Boyd August 2008 Failure to Launch ii DEDICATION It is with a sincere feeling of appreciation that I dedicate this thesis to the individuals in my life who have helped me through this process. I would like to dedicate this thesis to my parents, Iain and Theodora Boyd. Without their support throughout my undergraduate and postgraduate university career as well as my life, I would not be the person who I have become or experienced the success which I have had. I would also like to dedicate this thesis to my brother and sister, Telfer and Amber Boyd. Their positive outlook on life and words of support has helped me immensely during my career at the University of Tennessee. Whatever future endeavors I undertake and wherever they may take me, I hope I make my family proud. Failure to Launch iii ACKNOWLEDGEMENTS I offer thanks and acknowledgements to the following individuals: Dr. Damon Andrew (Advisor) – For his support, interest and involvement in my research for the past two years. Dr. Win (Gi-Yong) Koo & Dr. Lars Dzikus (Committee Members) – For their support and tremendous feedback which they gave to me during various stages of this research. My family & friends – For their support, laughter and words of wisdom throughout my time at the University of Tennessee. Failure to Launch iv ABSTRACT Many international sports such as soccer and rugby believe the future growth and prosperity of the sport would be secured, if they can become established within the US sports market. However, many sports leagues/organizations have attempted to enter into this competitive marketplace with a good number of them failing to either establish themselves or are no longer in existence. The purpose of this research study is to investigate the factors of failure behind the North American Soccer League and the Women United Soccer Association utilizing Michael Porter’s Models of Strategy Formation. An analysis of the two failed leagues will be conducted in order to discover what the main reasons behind the failure were for each of these leagues. The intent of this research is to uncover any commonalities which may exist between the reasons of failure for each league. For the purposes of this study, case study methodology will be utilized in order to help coordinate and present the data. This is the case for this study because the researcher is attempting to investigate the reasons behind the failure of the NASL and WUSA and this cannot be conducted or measured in a quantifiable manner. With the data sources for this study being subjective, the qualitative approach provides the best avenue in which to analyze the data for this research. To help contextualize the data for this research, the case study methodology will be employed. Analyzing how previous sports leagues/organizations have failed to become established within the US sports market from a strategy formation viewpoint can help future leagues/organizations to learn from the mistakes of their counterparts. The research also aims to discover whether the failure of these leagues can be attributed to the environment in which they operated in or to factors which these leagues had a degree of control over. The Failure to Launch v researcher believes by conducting this study, this will provide a guide to sports leagues/organizations whom are thinking of entering or looking to establish themselves within the multi-billion dollar US sports market. Failure to Launch vi TABLE OF CONTENTS CHAPTER ONE……………………………………………………………………………...1 INTRODUCTION…………………………………………….…………………………...…1 Introduction…………………………………………………………………………... 1 Statement of the study………………………………………………………………… 1 Statement of purpose…………………………………………………………………. 2 Significance of study………………………………………………………………….. 2 Research Questions and Hypotheses…………………………………………………. 3 Variables……………………………………………………………………………... 3 Definition of terms……………………………………………………………………. 4 Delimitations…………………………………………………………………………. 4 Limitations……………………………………………………………………………. 5 Summary……………………………………………………………………………… 5 CHAPTER TWO……………………………………………………………………………..6 LITERATURE REVIEW……………………………………………………………………6 Overview of US sports market………………………………………………………………6 Structure of the marketplace…………………………………………………………. 6 Structure of US sports league………………………………………………………… 7 Current trends within the US sports market………………………………………….. 8 A brief history of soccer within the United States up to the NASL………………….. 10 Overview of the NASL and WUSA………………………………………………………...13 NASL………………………………………………………………………………… 13 WUSA……………………………………………………………………………….. 16 Overview of Michael Porter’s Model of Strategy Formation…………………………….19 Failure to Launch vii Definition of strategy………………………………………………………………... 19 Definition of model………………………………………………………………………….. 20 Michael Porter’s Model of Strategy Formation…………………………………………. 20 Analytical Model……………………………………………………………………. 20 Formulation model………………………………………………………………….. 22 Implementation model………………………………………………………………. 24 Arguments for using Porter’s model in analyzing the NASL and WUSA…………… 25 Summary…………………………………………………………………………….. 26 CHAPTER THREE………………………………………………………………………...27 METHODOLOGY…………………………………………………………………………27 Research Questions and Hypotheses………………………………………………... 27 Variables……………………………………………………………………………. 27 Research design……………………………………………………………………... 28 Operational definitions……………………………………………………………... 29 Data collection procedures…………………………………………………………. 29 Data analysis procedures…………………………………………………………… 30 Summary…………………………………………………………………………….. 30 CHAPTER FOUR…………………………………………………………………………..31 RESULTS AND ANALYSIS……………………………………………………………….31 Michael Porter’s Five Forces Model for the NASL and WUSA…………………….…...31 Threat of entrants…………………………………………………………………… 31 Buyer power………………………………………………………………………… 32 Supplier power……………………………………………………………………… 32 Threat of substitutes……………………………………………………………....… 33 Failure to Launch viii Competitive rivalry………………………………………………………………...... 34 Michael Porter’s Generic Strategies Model……………………………………………… 34 Cost Leadership……………………………………………………………………... 35 Differentiation………………………………………………………………………. 35 Focus………………………………………………………………………………... 36 Michael Porter’s Strategic Means Model………………………………………………… 37 Internal development………………………………………………………………... 37 Mergers and Acquisitions…………………………………………………………… 37 Strategic Alliances…………………………………………………………………... 38 Findings…………………………………………………………………………………….. 39 NASL…………………………………………………………………………………