International Management Group (IMG)Competitive Intelligence Blog

Catherine Desrochers-CoulombeLouis MoustMarie-Pierre Tremblay

Plan

Company Overview◦ What They Do◦ History, mission, values

External Environment◦ Social, cultural, political, legal and

economic factors Internal Environment

◦ SWOT analysis

Company Overview IMG is present worldwide

Represents athletes, models, artists and events

Organizes events, produces media content, negotiates licensing contracts.

What They Do

Media production and distribution across multiple platforms

Television, online video, mobile content

Example:«IMG produces highlight clips for every game in the English Premier League – available on Vodafone and the 3 Network’s mobile phones within four minutes of end-of-play»

What They Do

Event creation, management and sponsorship sales

Sponsorship activation, mobile marketing, PR events, entertainment marketing, product launches, college marketing

Examples:◦ World and European Figure Skating Championships◦ Bank of the West Classic in Stanford ◦ CA World Speed Skating Championships

What They DoClient representation and brand management

Contract negotiations, licensing and endorsements, marketing and public relations, personal brand building,

Media training, image and crisis management and media relations.

Example:Tiger Woods is an IMG client and the firm handles the public relation aspects surrounding the recent scandal

What They DoConsumer products licensing

Manages trademarks and intellectual property

Examples ◦ College Licensing Company◦ FC Barcelona in Asia

What They DoAthlete training

IMG Academies have facilities for tennis, golf, baseball, basketball and lacrosse

Allows for first contact with potential clients

ExampleDerek Jeter, Anna Kournikova and Chad Pennington all graduated from IMG Academies

Mission

«Using imagination, creativity and energy, ourmission is to leverage the unparalleled power

ofIMG's worldwide resources, capabilities and

assetsto the benefit of our clients, customers and

partnersin the areas of sports, entertainment and

media. »

The Company Now

IMG is the world's most important sports, entertainment and media company.

Is in more than 30 countries, more than 58 locations and more than a 1000 clients.

Has abandoned representation of team sports’ athletes in North America.

History Mark McCormack, was a former lawyer and agent for

professional athletes.

In his youth, McCormack was a good amateur golfer, but not good enough to become professional.

He was friends with Arnold Plamer.

He reasoned out that an athlete such as Palmer could bring sports to a totally different level of popularity and profitability.

Made an agreement with Palmer.

Around 1966, McCormack decided to expand the company.

History Later on, IMG decided to start investing in event

management and ownership.

It founded a golf course division, a television division and it created a consulting business.

In the 80s, IMG also developed a money management division.

  A few years later, IMG added clients from other

industries.

Board of Directors McCormack deceased in 2003

Board has 16 members

◦ Theodore J. Forstmann Chairman and CEO IMG ◦ Ian T. Todd (President IMG International)◦ George Pyne (President IMG Sports & Entertainment)

Political-Legal Environment The Seitz Decision and the Bosman Case

Impact of globalisation on the governement of emerging countries

Changes in the governement’s attitude in India and China allows entry of foreign firms

IMG concluded joint-ventures with Indian and Chinese firms and most likely with a Brazilian firm

Economic Environment Maturation of the sport’s market in Canada and

America

Necessity to explore new markets

Brazil, China and India are countries beneficiating of a strong economic growth

India’s middle class is estimated at somewhere between 150 million and 300 million people

Economic EnvironmentBrazil, China and India are enjoyin strong

economic growth

◦ China’s economic growth = 8,7%◦ Brazil’s economic growth = 7,9%◦ India’s economic growth = 5,1 %

Social-Cultural Environment The cultures in which the company operates

remain relatively distinct

Soccer is not popular in North American countries

IMG Soccer in Spain and Argentina

Differences between the American and the Canadian sports market

Social-Cultural Environment Essential to analyse the cultural aspect in

countries to evaluate potential opportunities

IMG is capitalizing on the growing interest in sports in China and India

Change in the Chinese mentality about golf◦ Was once only reserved for the super-rich

Social-Cultural Environment India’s population is getting better education

and, in general, earning better salaries

Higher incomes usually allow for greater budgets for hobbies such as sports and fashion.

Brazil, China and India are among the world’s most populated countries.

Internal EnvironmentStrengths

Over 50 years of experience

Diverse ventures◦ Representation, Licensing, Events

Strong financial position◦ 1.6 billion dollars in revenues in 2001

Internal EnvironmentWeaknesses

Negative perception◦ Viewed as a bully

Lack of made for TV events

Poor exploitation of internet

Internal EnvironmentOpportunities

Emerging markets◦ Brazil, China, India

Exploitation of new technologies

Internal EnvironmentThreats

Many well financed competitors◦ Octagon, Clear Channel

Employees can become competitors

Highly competitve industry◦ ‘every hour of every day (…) someone is

trying to steal your client’

DiscussionGiven that IMG has many different

branches, are they engaging in vertical or horizontal integration?

Do you think that the Tiger Woods’ recent scandal will negatively impact IMG?

The End