The Anschutz Entertainment Group (AEG) is a leading sport and entertainment group that boasts the world’s largest collection sports team and sporting facilities. AEG owns and controls numerous sporting facilities in the United States with such arenas as the Staples Center in Los Angeles, Prudential Center in Newark and the America Airlines Arena in Miami under its control. AEG developed and operates the Home Depot Centre in Carson Los Angeles “it is the official U.S Olympic training site that features elite facilities for soccer, tennis, track and field, track cycling, boxing, lacrosse, rugby, football and other sport. The Home Depot Center also hosts concerts and family shows and is the home of the Major League Soccer’s Los Angeles Galaxy and Chivas USA” (Anschutz Entertainment Group, 2012). It is also the national training center for both the Men and Women national soccer teams. AEG also controls many facilities worldwide, in Europe in controls the O2 area in London and the O2 World arena in Berlin, The Hamburg Arena in Hamburg, the Ahoy arena in Rotterdam and the Globe Arena in Stockholm. In Asia it controls the Wukesong Arena in Beijing and the Qatar National Convention Center in Doha. AEG also controls Acer Arena in Sydney Australia. AEG owns a share in an impressive number of sports teams around the world and has a firm grip some of the largest sporting franchises and various sports. AEG part owns the Los Angeles Galaxy, Houston Dynamo’s Major League soccer teams and the Hammarby soccer club which is the most popular soccer club in Stockholm and among the most popular soccer clubs in Sweden (Anschutz Entertainment Group, 2012). AEG part owns various hockey teams from around the world that include that LA Kings that play in the NHL, the Ontario Reign and Reading Royals that play in the ECHL. AEG also owns hockey teams in Stockholm, Berlin, Manchester and Hamburg. AEG also shares ownership of the LA Lakers NBA basketball team. AEG organizes and is involved in some of the world’s largest sporting events like the Tour de France, Amegan Tour of California ESPN X Games, ATP tour finals, and the Bay to Breakers foot race. AEG Live is a leading concert and music event promoter it is the world second largest music presenter behind Live Nation. “AEG Live is comprised of touring, festival, exhibition, merchandise and special event divisions” (Anschutz Entertainment Group, 2012). AEG Live is responsible and produces some of the largest music festivals such as Coachella Valley Music Festival, the New Orleans Jazz and Heritage Festival, Rock on Range and Rocklohoma. AEG Live also produces some of the largest music and entertainment events in Las Vegas.
AEG Mission Statement “Comprised of more than 50 divisions, AEG focuses and coordinates the specialized skills of each group into and powerful aggregate resource to achieve the broader goals of the company. AEG is building state-of the art facilities around the globe, creating one of a kind live entertainment experiences. AEG is distributing unique content to international audiences. Giving the fans access to world-class performances and transforming events into peak life experience. Each AEG division work in concert to fulfill our guiding principle – to “give the world a reason to cheer” (Anschutz Entertainment Group, 2012)
According to MaketingMo.com (2012) an organizations brand is more than “your logo, name or slogan. It’s the entire experience, your prospects and customers have with your company, product or service”. Although the AEG brand is a giant there could be an argument that the brand name is relatively unknown in the public domain, what AEG’s strategy has been successful at doing is partnering with successful well recognized brands. A good example of this would be David Beckham, Beckham was already a successful brand however AEG partnered with Beckham to bring him to one of this own brands the LA Galaxy which in turn gave the LA Galaxy recognition around the world. AEG also partnered with Beckham in the soccer school what have been taken all around the world, but the AEG name is never mentioned. This example can be seen in other areas of the AGE brand like the LA Lakers, LA Kings in the sports world and Concert West and Goldenvoice that promote the Coachella music festival.
As an organization AEG wants to convey and image of providing the best entertainment in the best facilities around the globe and providing an audience with an unforgettable experience in world class facilities. AEG also want to been seen as an organization with access to the biggest sports and entertainment stars in the world.
AEG’s corporate growth strategy
1. Concentration
AEG aggressively looks to continually grow its existing lines by developing and building new real estate infrastructure. AEG has just been given the permission to go ahead and help build Farmers Field in next to the Staples Center, the aim of AEG is to build the stadium and either relocate a current NFL team or create a new football franchise for the L.A area. We have already seen AEG aggressively move into globally markets by jumping on the back on large events like the Olympic Games in Beijing and London it will continue to support the building and management of stadiums and arenas for the FIFA World Cup in Brazil for 2014 where it is involved in the of building stadiums in Sao Paulo and Recife. It will also be involved in building venues for the 2018 FIFA World Cup in Russia where it will be involved building and managing a stadium in Moscow. AEG looks to build and manage stadiums, arenas and other entertainment real estate all across the world many of these facilities are multipurpose where AEG can use it other divisions of expertize to maximize the facilities potential and profits.

2. Integrate
Primarily AEG is an organization that builds and manager’s sport and entertainment facilities but by buying or funding sporting franchises AEG can unsure that its own facilities are being constantly filled by fans. AEG has controlling shares on NBA basketball teams and NHL Hockey and MLS Soccer team that all paly in AEG managed facilities. This same strategy can been seen in AEG Live, as premier producer of live events and exhibitions AEG can ensure that world’s most famous artists are performing and filling AEG managed facilities. By owning professional sporting franchises and creating a division to manage, promote concerts and tours AEG can ensure that world class event are constantly being held in AEG facilities, by doing this AEG cut out the tricky busy of filling large facilities
3. Diversify
AEG has managed to diversify its business into many different areas from its original strategy of building or managing world class sporting and entertainment facilities. AEG has started to selling tickets for AEG managed sites through it ticketing website axs.com, this move came after the Live Nation and Ticketmaster announced a merger. AEG didn’t want one of its biggest competitors Live Nation have access through the Ticketmaster website to its facilities and customer data. AEG has looked for diversification of it strategy through its various divisions like AEG Media and AEG Merchandise divisions. With its affiliates AEG has moved into film production, media groups, event management and television.
AEG adopts a prospect business level adaptive strategy the company is very aggressive at moving into new markets AEG has been aggressive throughout North America it has gone from regional organization in the LA area to owning and managing facilities throughout the whole continent, it has also brought stakes in sports franchises, sporting icons, sporting event and has created a music promotion and touring company to fill these facilities. AEG has been very aggressive with its strategy in the Chinese market, the organization can see the potential for growth in China and it wants to have a large control of the future Chinese market. AEG now has control over many facilities around the world it has not defended its position in the United States it has actively gone out to take control on an international scale. AEG has also been aggressive in entering new markets like digital media, film, television and newspapers and magazines.

Five forces competitive analysis for AEG

2. Potential Development of Substitute Products/Services.
HD TV and 3D TV, Online Entertainment and Streaming.
2. Potential Development of Substitute Products/Services.
HD TV and 3D TV, Online Entertainment and Streaming.

5. Barging Powers of Buyers
Customers have a lot of power because there are many reasons why they won’t attend a facilities, cost of tickets is a big factor. Customers are loyal though to sports teams and music artists and will come to see them.
5. Barging Powers of Buyers
Customers have a lot of power because there are many reasons why they won’t attend a facilities, cost of tickets is a big factor. Customers are loyal though to sports teams and music artists and will come to see them.
4. Barging powers of Suppliers
AEG is dependent on its suppliers. It was too dependent on Ticketmaster to distribute its tickets. After it merged with Live Nation AEG had to create AXS.

4. Barging powers of Suppliers
AEG is dependent on its suppliers. It was too dependent on Ticketmaster to distribute its tickets. After it merged with Live Nation AEG had to create AXS.

↓ 1. Rivalry Among Competing Firms
Harrah’s Entertainment, Maple Leaf Sports and Entertainment, Kroenke Sports Enterprises, Regional Sports and Entertainment Presenters.
Live Nation and Ticketmaster 2. Rivalry Among Competing Firms
Harrah’s Entertainment, Maple Leaf Sports and Entertainment, Kroenke Sports Enterprises, Regional Sports and Entertainment Presenters.
Live Nation and Ticketmaster

→ ←

3. Potential Entry of new Competitors.
The sports and entertainment presenter industry is run by large organizations usually regional organizations there isn’t to many global players. There is a potential though for an organization to see China and India as potential markets to explore.

3. Potential Entry of new Competitors.
The sports and entertainment presenter industry is run by large organizations usually regional organizations there isn’t to many global players. There is a potential though for an organization to see China and India as potential markets to explore.

↑

SWOT analysis for AEG.
Strengths
AEG has many strong divisions under its umbrella it also has strong partnerships with some of the world most famous sporting brands like LA Lakers and David Beckham. AEG owns and managers some of the world’s premier sporting and premier facilities and has presence globally, the company is backed by wealthy owners which gives it stability and strong ownership. AEG has a reputation of increasing spectator’s experiences at live event across a diverse range of sporting and entertainment events.
Weaknesses
Although some of its brands and facilities are world famous, the name AEG it not in the public domain and many of its customers have probably never heard of AEG. The cost of building and managing new facilities is expensive and in developing countries the price to visit event in AEG facilities is generally out of the reach of the average person so as AEG continues to expand globally into areas like China it is becoming harder and harder to fill these facilities as local customer don’t have the disposable income. To keep some of it facilities filled AEG has to support some of the sporting franchises to keep them going, for example AEG now has an interest in 6 of the 19 MLS teams it has had help franchise financially to keep the leagues going so many of its North American facilities area based on external factors on how the sporting franchises are performing,
Opportunities
AEG has jumped on the LA NFL team opportunity, long has it been talked about getting a franchise back to LA, with the major stumbling block of the stadium needs, now a new stadium has been given the go ahead and AEG will be developing the site which will be open in 2016. AEG has looked to expand into China and it has partnered with the NBA in a joint venture to manage and operate NBA styled multipurpose sports stadiums and entertainment arenas with the growing popularity of basketball in China there will be a great need for sporting stadiums. As AEG looks to expand into China it partnership with the NBA will be valuable.
Threats
The merger between Live Nation and Ticketmaster is a threat to AEG live with Ticketmaster being the largest ticket distribution website now in the hands one of AEG largest competitors it has had to create its own ticketing website. There have been declining revenue streams over the past ten year from performing artists which in turn has increase prices of concerts which is pricing some people out of paying to visit the facilities. With the development of high definition and 3D television the experience of sports events is becoming more and appealing for fans to stay at home and not pay to visit stadiums.
Currently AEG has the signs of an organization that is in a growth phase with numerous amounts of new project ongoing and the development on new divisions within the organization. It has been very clever at partnering with international tournaments like the Olympic Games and soccer World Cup as there will be need for need stadium and entertainment facilities through the world on a regular basis as new cities and countries look to host these events. AEG’s current outlook is strong and in the future AEG will probably look to have control of more sporting and entertainment facilities around the world, China is obviously are great area of interest for AEG and potentially other emerging markets like India may become a priority for AEG. The success of LA Live and the O2 in London could see AEG creating more and more entertainment districts around the world . AEG will look to partners with more brands and icons to promote its own organization potentially it could buy into more sporting franchise around the world and inside the U.S. If there was a creation of new NFL sporting franchise in L.A AEG would probably be a part of its ownership.
Future Strategic Goals for AEG * To enter and seek new market opportunities around the world * To maximize sales and profits in existing facilities * To seek new franchise and ownership opportunities and sporting leagues ,around its existing facilities * To support growth of existing franchises and AEG divisions * To improve AEG’s environmental performance within 3 years * To support AEG’s charity, community and civic programs.
Future objectives for AEG * AEG should continue to seek opportunities in emerging marketing in developing countries. AEG should continue to be aggressive in China and look for potential growth in India. * By creating unforgettable experiences through its high standard AEG expects growth in the sales in its existing facilities * AEG should continue to seek out new franchise ownerships or sporting teams around the world. Any potential LA NFL team AEG should aim to be part owner. Look to invest in NBA china * Look to support the growth of AEG owned franchise and sporting leagues create successful teams built around strong icons and brands * Over the next 3 year look to save energy, water and reduce waste for sustainable growth through the 1 Earth program * Continue to improve the quality of life of people in the community through the AEG community outreach programs.
AEG is world leading sport and entertainment presenter with many facilities globally. AEG aims to provide the best live experience in the best stadiums and arena. Through its various divisions AEG has created an organization that can’t be matched. AEG has many resources to continually provide world class sport and entertainment to fill its facilities. AEG has been aggressive in its business strategy by expanding globally and through acquisitions of sporting franchises and global will icons. Through is AEG Live AEG has managed to create a touring and promotion company that gives it access to world class entertainers. Although the AEG brand is relatively unknown it presence throughout the world and has an invested interests in some of the world largest sports teams. AEG looks like it will continue to grow and by add more and more divisions it looks like AEG will be become more and more influential in different industries in the media and entertainment environment. With future partnerships AEG looks to become more involved with some of the largest event on the planet.

Reference

Anschutz Entertainment Group, (n.d) retrieved 9th February 2012, aegworldwide, retrieved from www.aegworldwide.com
Lussier, Robert.; and Kimball David. (2004). Applied Sport Management Skills. South Western a Division of Thomson Learning.
Marketing Mo, (n.d) retrieved 9th February 2012, How to Develop your Brand Strategy retrieved from http://www.marketingmo.com/strategic-planning/brand-strategy/