Situation analysis: Global X Games flopped in its endeavors losing ESPN over $30 million dollars. ESPN saw this big chunk of money going down the drain and decided to call it a loss and canceled all future stops in the Global X Games. ESPN released an announcement saying that instead of going forward with Global X they will be focusing on the two domestic X Games. Unfortunately, this means staff layoffs, disappointed athletes, and bad press all due to a bad business plan. ESPN was trying to pull off a seven year plan in just three. Overlooking this caused not enough time to sell the events as they should have been sold. ESPN had a great product and they put on events that the crowds loved, but they expected too much too fast. Trying to sell an event like Global X on an international level takes more time than they gave themselves.
Marketer’s Dilemma: Taking into consideration of the loss of $30 million, what is the best option for ESPN to move forward in making the best decision-to cut or not to cut- the Global X Games?
Alternative 1: Cancel all future Global X Games and focus on what has worked on the past. Concentrate on selling the domestic X Games.
Alternative 2: Re-evaluate the long term business plan of Global X to create a realistic plan that gives the Global X Games time to sell and market itself. This would involve pushing the event to later dates allowing the new business plan to be made and implemented.
Alternative 3: Instead of all together canceling the games, push back the international dates until after one of the domestic X Games in order to use it for marketing. Market and promote Global X through the X Games, which will hit the intended audience and create better awareness of Global X and hype it up. Offering promotions such as bundling packages for X Games and Global X could increase and create loyal fans.
Decision Criteria (Ranked with