Case Analysis of World Wrestling Entertainment

Case# 11

Case Analysis of World Wrestling Entertainment


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World Wrestling Entertainment also known as WWE is an incorporated media and an entertainment company which is based on a wide range of businesses consisting of passionate and loyal base of the customer. WWE is been recognized as a leader in providing entertainment related to sports for many years. Strategy used by the company is to capitalize on major leverage operations if the business model of the company is distributed of its intellectual property across existing platforms related to media and also new emerging platforms based on distribution. Main focus of the company is the expansion of its potential of the brand of WWE not only in domestic markets but also in international markets, developing extensive business apart from the brand of WWE and development of new programming as well as brands related to sports entertainment which help in leveraging the core competencies of WWE. Part of their business strategy is to look for the initiatives for strengthening the brand, to expand the business at an international level, making use of significant wrestling content of their library effectively and to look for more opportunities in providing entertainment related to films.

Now, World Wrestling Entertainment is recognized as one of the major integrated entertainment company that is mainly involved in developing, producing, and marketing of programs related to television, programming related to pay-per-view, live events and also licensing and sale of consumer products that are branded which also features successful brand of WWE. with the continual growth in the brand of WWE, a strategic decision for expanding the brand of WWE globally was made with great emphasis.

Business model of WWE is given below:

(Shuart, n.d)

Issues faced by WWE:

Apart from its large global expansion and its increasing brand growth and opportunities, there are also some issues faced by WWE which include an issue faced due to growing form of mixed martial arts which is a form of combat sports combining kickboxing and grappling. As it is very much similar to wrestling, therefore there is a threat that fans of WWE might be attracted to martial arts.

Another issue faced by WWE is that it is not a family friendly entertainment due to involvement of abusing words, sex and much violence. Due to which strong customer base of the company might be hurt as people prefer to get entertainment with their family and which WWE is not.

Solution to the Issues:

First issue is solved by starting MMA in Brazil and Japan which is an ultimate fighting championship and is also an International Fight League which contributed in promoting WWE as a new spectator sport in United States.

Second issue is solved by toning down its sex and violence for expanding their audience base and also to make their shows more family friendly. Fake prop blood is now no longer used by them and the use of abusive language has also been toned down for getting the rating of TV-PG for their television programming. Therefore, by implementing and adopting such changes, many new ways of exploiting wrestling as a form of mass entertainment can be found.

SWOT analysis of WWE:

STRENGTHS:1- Biggest strength of WWE is that it is merely not just a wrestling company but it is also involved in providing its customers with a wide range of entertainment. This strength separates it from its competitors.2- Another strength its licensing program that operates all around the world. In video games of WWE, licensing plays a very important role which is a main source of earning revenues for the company.3- One of their biggest strength is their huge library that is based on home video.4- Pay per view is also strength of WWE. Wrestling was introduced to the mainstream through WrestleMania by using pay per view and now almost 20 pay per views are presented by WWE which feature its two significant brands i-e RAW and Smackdown.WEAKNESSES:1- Major weakness of WWE is that the industry of wrestling is very cyclical in its nature having uncertain ups and downs.2- Another weakness of this company is that there is not enough competition in this industry and therefore without enough competition, there is less motivation for being creative and innovative in its offerings.
OPPORTUNITIES:1- Major opportunity for WWE is related to their home video library through which it has covered many decades of the business of wrestling including many other wrestling companies like World Championship Wrestling, Extreme Championship Wrestling, American Wrestling Association and many others.2- Another opportunity for the company is its international expansion in its market. International television syndication has been possessed by WWE for dealing all around the world which also makes its fans more rabid about wrestling just like the Americans are for it.THREATS:1- Threat of competition from its closest competitor i-e NWA which is a total non-stop action which was started in year 2002 and was available only on pay per view and on weekly basis.2- Another biggest threat at this point to the company is related to its television ratings because it was not just good as it was before as its storyline was becoming more repetitive and boring.

Core Competencies of WWE:

One of their major competencies is their availability of both tangible and intangible resources. Most valuable tangible resources for the company are its workers. Characters i.e. wrestlers that are marketed in this industry are very strong and even stronger than the product itself of the company.

Another tangible resource which the company has is the money which can be analyzed from the net income figures of the company. An intangible resource of the company is its strong brand name in the industry. More than 300 live events are held by the company every year with the production of two magazines every month and also a huge base of viewers viewing its website in their daily routine.

Another intangible resource of WWE is their possession of multiple copyrights and trademarks and that is just not only for the company or its products but they are also possessed for its wrestlers like “Stone Cold” Steve Austin if he wants to work in another wrestling federation then he could not use the word “Stone Cold” as this name has been owned by WWE. This is therefore considered as a big advantage for WWE.

Another core competency of the company is related to its capabilities which are mainly located in the corporate management of WWE. Structure that is used in the overall organization also contributes very well in enhancing their capabilities.

Global Strategy of WWE:

WWE is been considered and recognized as the biggest wrestling company of the United States. Company has reached this position by spreading its wrestling entertainment around the entire world through international expansion. The expansion of the products of WWE in international markets becomes a necessity due to the current situation of this industry in United States. Reason behind this expansion was due to an increase in the demand for the products of WWE. In addition to this, attendance of live events or house shows in this industry was becoming very disappointing and therefore, for providing more overseas shows to its fans that do not get a chance to see its programs live. By doing so, not only the increasing demand will be satisfied but it will also help in getting the market of wrestling that was declining. Moreover, due to increase in international live events of the company, more of the international staff was also hired for continuing its international expansion.

Television presence of WWE at an international level also helps in expanding its entertainment at an international level. Moreover, due to its licensing agreements with many licensees all around the world, it has been more successful in expanding internationally. Logo of WWE is used by the licenses and wrestling characters are also trademarked on its every type of product.


It has been analyzed from the case of WWE that it is recognized as the biggest provider of wrestling entertainment and has earned a reputable position in the industry through its strong brand, huge customer base and also due to its international expansion. Moreover, in its career of success, there were some issues that were also faced by the company but the company sought them out with appropriate solutions and has reached the heights of great success. Apart from its successful career path, there are some recommendations for future brand strategy of WWE and they are:

· WWE must appoint national of regional directors for the brand strategy of WWE in different and specific markets.

· Films of WWE should be self identified and certain activities should also be changed.

· Creative storyline should also be developed further.

· WWE must also expand its entertainment in developing countries.

· Company must start the active usage of possibilities like Web 2.0 which includes social networking, Blogs and etc.


Therefore, at the end it is concluded from the complete analysis of this case that WWE has established its reputation and strong brand name all around the world through its continuous and consistent struggle by offering live event shows to its fans in order to increase its customer base. Although, some problems were also faced which were solved easily and the name of the company was not spoiled. Moreover, some recommendations like development of more creative storyline, expansion in developing countries, active usage of Web 2.0 and etc. are to be adopted by the company for expanding its future brand strategy.

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