Cultural factors affecting U.S. sports franchises in international markets

Global Marketplace

Culture can be defined as the common values, traditions and beliefs held by a certain group. It captures how the group's members live, how they relate both with each other and with other groups, and how they perceive life. In that regard therefore, culture can be referred to as the glue that holds members of a particular group together (Cavusgil, Knight & Riesenberger, 2007). An enterprise that succeeds in today's global marketplace is one that is capable of; overcoming the strong cultural influence of the society in which it is domicile, appreciating cultural diversity, and incorporating it into its day-to-day operations (Cavusgil, Knight & Riesenberger, 2007).

What cultural factors must U.S. sports franchises overcome to increase popularity abroad?

From the onset, it should be noted that sports are a fundamental component of the U.S. culture, and have, like all other sectors, not escaped global scrutiny. There have been numerous attempts to make the country's sports franchises more popular on foreign platforms, some of which have been successful, and others, a total failure (Cavusgil, Knight & Riesenberger, 2007). In order to serve new markets effectively, one should first gain an understanding of the cultural orientations in terms of social structures, language, religion, customs, and manners of the countries in which the target markets are domicile (Cavusgil, Knight & Riesenberger, 2007).

Language is, in fact, a major cause of concern; the use of words which though quite normal in the U.S. have different, and at times vulgar meanings in other cultures, has contributed significantly to the failure of popularity attempts in the past - especially with regard to the scouting and recruiting of foreign athletes and players. Displeased foreigners may take it as though the 'vulgar' U.S. environment would only ruin the morals of the recruited athletes (Cavusgil, Knight & Riesenberger, 2007).

The failure to address such concerns would often lead to cultural conflicts and the ultimate closure of U.S. sport franchises established abroad, as was the case in the 2007 closure of the NFL European Franchise (Cavusgil, Knight & Riesenberger, 2007). Despite the large sums of money invested therein, the European Football Franchise was unable to take off because the Europeans felt that the sport was too pervasive, emphasized the idea of violent conflict, and had too much of the American headstrong attitude, and that, through the franchise, the NFL was trying "to push an inferior product on a market long loyal to soccer" (Cavusgil, Knight & Riesenberger, p. 126).

Should governments protect their industries by placing tariffs on imported products?

Trade liberalization comes with a number of benefits; including increased product variety, production of high-quality goods (owing to increased competition), low product prices, and generally, increased consumer welfare (Kegley & Blanton, 2009). There is, however, need for the government to retain some degree of control by imposing a small percentage of tariffs on imports so as to; i) protect infant industries in the domestic market (industries which may otherwise be forced to close down for inability to offer the low prices offered by the well-established import-producing MNCs), ii) prevent dumping and the associated welfare loss, and iii) protect domestic employment, which would otherwise fall considerably as firms lay off workers so as to enjoy the benefits of scale economies (Kegley & Blanton, 2009).

Conclusion

Culture plays a considerable role in the society's way of life. In that regard therefore, whether or not an enterprise can survive in today's highly competitive global marketplace largely depends on how well it can organize its structures to appreciate diversity, and hence respond to the needs, preferences, and tastes of different markets.