ABC

MOTORSPORT – Live Case Study

• Motorsport is a niche industry in country with very low
business turnovers but very high profit ratios.

• ABC Motorsport is leading Motorsport Organizer in country for
last 15 years & enjoy a cult following in motorsport fraternity
of the country.

• Pioneers in Indian Motorsport by introducing new formats,
creating new IPs & showing the path in Indian Motorsport. The
company is known for its innovations & capability to punch
above it weight on basis of sheer passion towards sport.

• Company run a small office with 18 employees, but employs
more than 1000 more throughout the year for different events
as event staff/freelancers/volunteers etc.

• Company started to work with Star Motor Company as lead
investor in its events since its inception in 2002. Company’s
portfolio with Star Motor reached an all time high in 2015
onwards with almost 15 events an year.

• Company started to work with Max Motors in 2010. Max
portfolio increased to an all time high in 2015 with almost 10
events an year.

• Company also secured business with Rainbow Motor Company
in 2015, when it executed almost 5 events in this year.

• Company executed more than 30 events in 2015 and did
highest ever turnover.

• In 2015, on basis of robust growth, company launched plans
for its dream project “India International Formula Race” for
2016, which was expected to bring in unprecedented
international participation, huge media interest & next level of
revenue, profits & growth for the company.


 • End of 2015 also brought first setback for the company when
Max Motors decided to distribute its business by involving local
vendors leaving only 3 events with company for 2016.

• Start of 2016 saw Rainbow Motor Company pulling out its
investment from company as it they opted for another operator
for whom Rainbow Motor Company shall be top & only
priority.

• Loss of these two businesses (partially Max Motors & complete
Rainbow Motor Company) made company management to
control costs & spends, leading to significant cuts in budget
allotted to “India International Formula Race” project.

• As a result, while India International Formula Race 2016 was
successful & attracted international participation, it failed to
create a good enough media footprint & PR impression.
Naturally, sponsors were left unsatisfied & participants
complained about lack of “big event feeling”.

• 2016 also saw huge event management companies jumping
into the market by seeking business from automobile
manufacturers by proposing simple customer experience
events in spite of hardcore motorsports events, which shall be
easier to execute & shall connect to customer direct.

• ABC Motorsport shrugged off such activities, by deciding to
keep focus on its legacy, strength & heritage of true
motorsport, & thus showed no interest in customer experience
activities with auto manufacturer.

• Instead in 2017, company refocused its strategy towards Star
Motor Company & tried to seek increased investment by
proposing new motorsport formats & additional events. The
same was successful as Star Motor Company increased the
investment, but unluckily the new format failed to attract
public’s attention despite a perfect execution by NM &
acceptance in sports fraternity.



 • Meanwhile in 2017 also, because of lack of required
investments, “India International Formula Race” continued to
be a middling success with no great achievements but still
being loved by enthusiasts & participants. End of 2017,
company hired a CEO for first time ever to infuse fresh vision &
energy to the company.
• Start of 2018 brought the fall news for the CEO & the company.
A combination of factors like failure of new concept to connect
with public, success of other auto manufacturers with
customer experience events, launch of new brands etc.
convinced Star Motor Company to close investment in
motorsport completely.

• Instead, Star Motor Company decided to shift the investment to
join the bandwagon of customer experience activities, where
ABC Motorsport had no experience. While Star Motor Company
still invited company to make the presentation for the same, it
also invited top national & international event management
companies for the presentations.

• ABC Motorsport is now facing a scenario in 2018, where they
are left with
o 3 Max Motors events
o A middling “India International Formula Race” which is
still only an opportunity & not a success
o A ray of hope to fight with bigger agencies for new Star
Motor Company business; but with no experience &
expertise in the field of customer experience activities
o A bouquet of cult events like Desert Rally, Auto Cross,
Summer Challenge etc, which now lie unsold after
pullout of Star Motor Company.

• A scenario of make or break, do or die. CEO, who is still is very
new in job is facing a scenario where his decisions, if goes right,
may take the company to next leap of growth and success;
while if decisions go wrong, company may face day of doom.
What he understands is that company needs to change, but he
needs your help in how & which direction it should change. Can
you help?



 • Options for the him are

o To change towards downsizing operations & staff to not
go into losses & close down loss making events in
absence of investments; keep its focus on core strength
of motorsports & slowly try to win back some events
from Max Motors.

OR

o To change towards new age by leaving its focus on real
motorsports & change towards new business of
customer experience activities by taking this an
opportunity; invest more in acquiring capability &
personnel needed; take the fight to other event
management companies & pitch for not only Star Motor
Company business but every other brands also in same
segment.

OR

o To change towards new age customer experience
business by leveraging its motorsport DNA by re-
inventing not only itself, but also the way other agencies
are doing customer experience activities; Invest in hiring
HR resources more to acquire competence to take
opportunity of becoming an event management
company; Focus more on dream project “India
International Formula Race” & other unsold properties
like Desert Rally in long term.

OR

o Anything else, not proposed in above

• Also, you need to think & mention
o What are the reasons & trigger for the change here?
o What are the types of change needed here, & what can be
the impacts involved which may lead to a change failure
o What is the most important change stake involved &
which change model is suggested, if at all.
o Recommendations in 5 points only.


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