To consider Manchester United position in the market and to define its strategic group we decided to use such business tools as strategic maps. And we created two strategic maps depending on the

To consider Manchester United position in the market and to define its strategic group we decided to use such business tools as strategic maps. And we created two strategic maps depending on the market of football club. As the first market we choose English Premiere League and as the second one Championships League. There are two really different markets even if we speak about strategy, about money, about image of the champion, etc.

First, several words about strategic map as a tool of strategic analysis, strategic map is a device used to communicate context and illustrate the basis managers have used for choosing a subset of the available measures to report on an organizational progress in implementing a strategy. Kaplan & Norton have suggested that it could be used as a simple strategy development tool.[1]

Let’s start from the first market, English Premiere League, indeed. To create a strategic map and define position of each team we need to choose two axis’s. Correlation between them should not be really high, because we need to define different group with different strategic positioning. For the first axis we choose such variable as sport result. Below we describe our method of calculating these results. And the second axis was a pre-tax profit level.

To calculate sport results of all teams of English Premiere League we took a statistical data for the last six years and collect this data in one table, which you can see below.

Table 1. Ranking distribution through the EPL in the last 6 years.

Football club
MC
MU
CLS
NWU
TTH
LIV
ARS
NORCITY
ST CITY
QPR
AV
WBA
EVE
SANDER
Swansea
Wolves
FLH
BOU
WIA
BBR

Figures which you see in the table mean ranking of the team in the year which indicated in the top. And you understand, if football club has a minimal point, we can say that this club demonstrate the best sport result in the League during last 6 seasons. Below you can see the rating of top 20 clubs of the English Premiere League by sport result:

Table 2. Top 20 clubs of the EPL by sport results.

Points	Football club	Ranking
	MU
	CLS
	ARS
	LIV
	TTH
	EVE
	AV
	MC
	BBR
	FLH
	BOU
	NWU
	WIA
	ST CITY
	SANDER
	Wolves
	WBA
	NORCITY
	QPR
	Swansea

There is one thing we need to clarify. You could notice that in the Table.1 there are several teams always stay with 21^st place, but there are only 20 places in the English Premiere League. 3 teams which are right now playing in the EPL, were not here for the last 6 years, they played in the 1^st division of English Championship.

Now we need to choose a variable for x-axis. We decided to use one sport indicator and one financial one. For this strategic map we picked up pre-tax profit indicator. Below you can see a table with a listed football clubs with a pre-tax profit for 2010 year.

Table 3. The English Premiere League pre-tax profit.

Football club	Pre-tax profit million euro
MU
CLS	-70
ARS	-20
LIV	-10
TTH	-10
EVE	-5,8
AV	-5
MC	-5
BBR	-4,3
FLH	-2,2
BOU	-0,7
NWU	0,1
WIA	0,48
ST CITY	0,5
SANDER
Wolves
WBA	10,7
NORCITY	-5,8
QPR	0,1
Swansea	0,5

So we can see that only one club showed in 2010 really good pre-tax profit and this club is Manchester United. But we should consider the fact that Cristiano Ronaldo was sold to the Real Madrid. (Sum of transfer deal).

And the last but not the least important element of the strategic map is market share. It was really difficult to find an indicator of market share. Because if we speak about computer manufacturers for example, it is really simple, because we know market volume and we have sales data and financial data for calculating market share. But in the case with football league it is not relevant to use such financial factors; there is no market volume, and actually there is no manufacturing, and it is not relevant to use data from transfer market. And we decided to define market share through the prize money of the League and its distribution among clubs. Results you can see below.

Table 4. Market share in the English Premiere League

Football club	Prize money EPL	Market share
MU		9,62 %
CLS	15.2	9,13 %
ARS	14,4	8,65%
LIV	11,2	6,73%
TTH	13,6	8,17%
EVE	10,4	6,25%
AV		7,21%
MC	12,8	7,69%
BBR	8,8	5,29%
FLH	7,2	4,33%
BOU	5,6	3,37%
NWU	6,2	3,73%
WIA		2,40%
ST CITY		4,81%
SANDER	6,4	3,85%
Wolves	4,8	2,88%
WBA		3,00%
NORCITY	2,4	1,44%
QPR	1,6	0,96%
Swansea	0,8	0,48%
	166,4	100%

And below you see strategic map of the English Premiere League.

The Manchester United has a strong leadership position, but there is threat of penetration from other strategic group. Especially we can speak about Chelsea club and Manchester City. Chelsea has almost the same sport results, but it doesn’t show such financial performance. On the other side, Manchester City has a really strong financial position6 especially beca use of the sponsorship and owners of the club, but MC doesn’t demonstrate such sport results as Manchester United does, except the last season and current season. MC’s penetration in MU’s strategic group is the biggest threat nowadays. MU united should concentrate all its efforts on the head to head matches with MC and Chelsea. It helps club to retain it’s leadership position.

[1] Kaplan Robert S. David P. Norton (2004). Stratgey Maps: Converting Intangible Assets into Tangible Outcomes. Boston, Massachusetts, USA: Harvard Business School Press. pp. 7

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