Change in firm is really typical today. To be able of continuous life and to retain potential the business has to step up with the current situation of market. Matching to Senior and Fleming (2006) business is affected by a multitude of factors, that happen to be influenced by both internal and exterior environment. To handle unsteady changes and to construct a strong management process and also to cope up with the external environment, change in strategy is important for a business.
"Strategic change is reshaping of the strategy, structure and cultural of an organization over time, by external makes or simply by drift". Grundy(1993)
Strategy change is the consequence of careful, objective research and planning by top management and is also applied down through the organization. The potential for the organization change and renewal is a struggle between this diversity and cultural inertia. ( Hailey and Balogun, 2004)
BCCI (Table of Control for Cricket in India), can be an group which is in charge of all the cricketing action in the India, undergone a recently available strategic change. In this article we look the case study of the BCCI. We look at the change of strategy of the BCCI, the new strategy acquired by the organization, the consequence of change in strategy, formation of the IPL and the model used to create the IPL.
The circumstance study
BCCI and Strategy Change
(Transform a sport)
In India cricket is like a religion. And all the cricketing incidents like international and home suits and other decisions in India are control by the BCCI (Plank of Control for Cricket in India). BCCI is the member of ICC. The game of cricket is a passion for Indian people and interest is one thing after which everything is extra. In cricket world India is the economical force.
Till 2007, All nations team plays the most notable level cricket which is control by the ICC whereas all national boards controls the home leagues utilizing the national talents and the best from those also play for nationwide teams. However in 2007, BCCI needed decision which turns the cricket world. BCCI declared the formation of IPL. BCCI was being motivated by the English Premier Category which resulted in the forming of IPL. It possessed to get started on in 2008 and the model was quite simply a tournament in which the city-based teams was required to participate. The participation of the international players made this little league an effective business. For the first three times auction was conducted for team franchises it generates $718 million. $1 billion originated from the television protection under the law and everything the international players were paid $45 million by the groups during an public sale. The IPL is predicted to bring BCCI money of approximately $1. 6 billion over a time of 5 to a decade.
The revenue syndication till 2017
IPL - 40%
Franchise - 54%
Prize Money- 6%
The revenue circulation after 2017
IPL- 50%
Franchisee- 45%
Prize money- 6%
All these characters show the performance of the IPL brand for the BCCI. All these things change the salary structure of the cricket world by player getting ultimately more for a season of six weeks than what they used to earn on the calendar year by their nationwide duties which resulted in change the money point of the world in cricket. The first season of the little league fascinate depends upon with the combo of cricket and entertainment and was become exceptional success.
IPL : Cricket + Entertainment
With the thought of EPL and the risk of survival and competition, BCCI began to plan the IPL with the support from the ICC and the different Cricket boards of different countries. The officials and the players from worldwide have been allowed to participate in IPL and may earn huge money by doing that. The total amount drawn in was so big due to enterprise of Bollywood and entrepreneurship that great expression will be misleading. All big guns from all over the world drawn to the IPL.
Reason for the change in strategy and creation of IPL
To develop quality the only method is the competition. Same thing happen with the IPL. Emotional and unreasonable response is underneath of the formation of the IPL. One expressive response led to other. It was not form from a long-term planning. Such kind of thing wasn't even dreamed by anyone.
The IPL give an impression as a reply to the category from the ESSEL Group called ICL (Indian Cricket Category). Large inhabitants of cricket lover in India, growing overall economy and by not getting it protection under the law of world glass cricket and on seeing the attractiveness of the other format of the cricket, ZEE Tv set intended to make a league of its own called ICL (Indian Cricket Group) by using the international as well as domestic players. It was about business and money. With worries of the abandonment and combat to survival BCCI were required to respond. BCCI wanted something to cover the cracks that they forget to wait in the composition. And this concern with competition enforces them to change their strategy and making ways to the new era of cricket led to formation of IPL. To break the ICL, the BCCI's response was the IPL.
Learning Objective
In this case study
This case may be used to discuss entrepreneurship when a fresh procedure is taken to a normal activity.
It may be used to discuss the relationship between international governing systems (such as sports governing boards) and national organizations, which can show common targets and activities, while concurrently pursuing projects that may have conflicting pursuits.
It can also be used to discuss replies to changes in the basic underpinnings of an business (in cases like this, the economic and security situations)
BCCI's NEW STRATEGY
Blue Ocean Strategy:
"Success comes not from battling competitors, but from making your competition irrelevant by creating 'blue oceans' of uncontested market space. ''
(Kim and Mauborgne, 2005)
The BLUE Sea Strategy entails the creation of the uncontested market space which creates your competition inefficient. (Kim and Mauborgne, 2005). BCCI used this plan and made IPL and exploit the unexploited market i. e. the home market of the Indian cricket, by producing the new format of the cricket 20 - 20 coupled with entertainment. For the reason that market the opportunity to develop was higher and size of income was huge.
According to Kim and Mauborgne, (2005) very first thing in the blue sea strategy is to look for the different market that was a similar thing what BCCI does by introducing IPL which form a fresh market of cricket in the domestic cricket and merged cricket with the bollywood i. e. entertainment and passion alongside one another. Other thing is to create an unchallenged market and BCCI's IPL performed a similar thing because the format which is use within IPL is 20 - 20 and it is a shortest version of the cricket so IPL increase the format that was supplied to the whole market rather than just the existing costumers. Next thing what BCCI have was create a new demand in the market same what Blue Ocean strategy said. IPL create a new demand of costumer by making the overall game more entertaining and watchable with the family. The step of using the shorter version of the game in IPL makes your competition with other format of the cricket really irrelevant because other form of cricket i. e. 5 times test cricket and 50 over one day international cricket are frustrating but the most recent format of the overall game is the shortest version of the game and people love to see the hottest version. In addition they supply the additional product with the same sport and extra service i. e. they offer the additional service of the entertainment with the overall game of cricket. Other thing on which BCCI worked was the intro of the psychological appeal. The participation of the films stars, intro of the top guns of the world and the cheer market leaders are the factors which add emotional appeal to the IPL.
The Model Involved In the Creation of the IPL
Transformational Change Model
The crescendo change model fundamentally aimed at the transformation change in the sense of any rejuvenation of an existing organization. Corresponding to Baden, Fuller and Stopsford (2004) the central of the transformational change is the need of making the corporate entrepreneurship.
Galvanise:
This step includes the change of each aspect and every aspect of the relationship that's signify from top of the management to the low level. One vital aspect of this step is the devotion of the first choice, managers or top management to regenerate the complete process. This aspect holds the best benefits throughout the association. After the creation of parallel category from the ZEE Television set group BCCI took a decision of making of IPL. For doing that the most notable management officers of the BCCI worked on proper plan and create a new little league of cricket and entertainment that was IPL.
Simplify:
This step includes the creation of simple things. It gives the required idea about the wrong tactical action and the info about step would have to be taken to go on right way. BCCI done this method and find out the solution of the parallel category. They worked on the same plan that was employed by the ICL by providing the new format of the cricket to the prevailing costumers.
Build:
This process includes the way from the wrong strategy. The new strategy has to be implementing by the top management of the business to attain on the normal objective and face the challenges in the market. To achieve the success in their goal the first choice of the organization needs to be alert to the model to find the solution of the situation. A similar thing had been done by the BCCI that is new head with the new quest, new target, and new technique to remain competitive in the same market. Gain the new skill from the ICL, get enthusiasm from EPL and implement all of this things in creating a new model of their own IPL.
Leverage:
It is the last step of the model, which bring the excellence and the development. The development will depend on the development of the market. After the successful first season BCCI try the IPL in the other market i. e. in South Africa, with the new costumer for the their domestic group and made the IPL a global product.
All the steps used by the BCCI to make IPL was according to the crescendo model.
Visionary Leadership Model
According to Prahlad and Ramaswamy (2004) the leaders of the organizations should restructure and reexamine the conventional strategies of their organizational methodology because in so doing the outcome could be the useful use of the chance in the way of achieving the aims. The integrated head always promotes marginal ideas in the expectation of finding something which is often useful in obtaining the goal. Corresponding to Instant (n. d. ) each business wants a aim to find the way to success and a leader is the main one who works on that aim to be able and gettable for the business enterprise. The main thing about the vision is not its inimitability but the outcomes create from that vision and the total amount to which it is useful for the customers and the organization and the easiness of changing into technique to improve the efficiency of the organization. . (Kotter, J P, 1988).
The vision which was seen by the management people of the BCCI was satisfied by the chairman of the IPL Mr. Lalit Modi. The parallel league shaped by the ZEE Television group was a real pain for the BCCI and they needed to made something bigger than the ICL and the better model for the business at that time Mr. Lalit Modi arrived as a leader with the new idea and new strategy. By changing the strategy of the BCCI and by acquiring the new strategy for the IPL he made that happen. Form a new model by incorporating the cricket with the bollywood and form a fresh category of entertainment only in 4 weeks. The work by Mr. Lalit Modi was exactly the same as what Prahlad and Ramaswamy (2004) said. He re-examined the complete strategy used by the BCCI and restructures the organization and then your effective use of the resources made ways to the success for him by means of IPL.
Conclusion:
The innovative idea of IPL used all the above model partially or completely. No doubt that it was a great proper move in a more substantial business stand point. Implementation of Blue Sea Strategy generated a tremendous business opportunity internationally. On the other hand innovative public sale and bidding of franchise and players helped bring huge cashflow in the business. As the result of tv coverage through print and electronic advertising a new cultural view of sports activities have created. IPL isn't just concept of activities and entertainment but also a concept which altered the designed macro and micro level culture of the society. The charismatic authority of Mr. Modi and his team has turned out through IPL the new transforming business culture of India in a worldwide platform. Rather than various controversies which some time turn into promotion move for the business enterprise rather developed the business from the nationwide to international level.
