Strategic analysis of the Shakespeare Birthplace Trust
Syndicate group 8
Contents
1. Introduction to the Shakespeare Birthplace Trust
2. External analysis of the market in which the Shakespeare Birthplace Trust competes
2.1. Porter’s 5 forces analysis
3. Internal analysis of the Shakespeare Birthplace Trust
3.1. Resource based view of the firm
3.2. VRIN model
3.3. Financial overview
4. SWOT analysis
5. Strategic positioning
6. Executing the strategy
6.1. First Proposal: Bringing Shakespeare characters to life
6.2. Second Proposal: Promoting the Shakespeare Birthplace Trust in London
7. Reference list
8. Appendices

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1. Introduction
The Shakespeare Birthplace Trust (hereafter “SBT”) is a privately funded organisation based in
Stratford-Upon-Avon (hereafter “Stratford”) in order to:
1. Promote in every part of the world the appreciation and study of the plays and other works of
William Shakespeare and the general advancement of Shakespearian knowledge.
2. Maintain and preserve the Shakespeare properties.
3. Provide and maintain a museum and a library of books, manuscripts, records of historic interest, pictures, photographs and objects of antiquity with particular reference to William Shakespeare, his life, works and times (source: www.shakespeare.org.uk).

Although the SBT has multiple revenue streams, its primary business is to sell a quality, historic,
Shakespeare related experience to visitors to the Shakespeare houses located in Stratford. This in turn fuels its second largest revenue stream, namely the trade of goods to the visitors of the Shakespeare houses and Stratford as a whole.

2. External analysis

2.1. Five forces analysis
For the purposes of this analysis the market has been defined as the market for historic Shakespeare related attractions in Stratford and the surrounding areas.

Competitors
The SBT owns all the Shakespeare related properties in Stratford in addition to a large number of manuscripts and other historic items. There are no strong competitors in the market. If the market is defined more broadly, however, to include all tourist attractions in the area, there are strong competitors like Warwick Castle, for example.

Complementors
The more visitors are attracted to Stratford, the more visitors will visit the SBT. Therefore complementors include the Royal Shakespeare Company and the Stratford Town Council.

Buyers
Given the defined market, buyers of the product sold by the SBT include the visitors to the Stratford properties and exhibitions (including tour guide operators) and exclude other potential buyers such as donors and the recipients of the cultural and academic services offered by the SBT. Given the large
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number of buyers (818,000 visitors in 2013) and the limited competitors and substitute products, buyer power in the market is limited.
Who are these buyers and what do they want?
Although information on the client base of the SBT is not readily available, some inferences can be made based on the data extracted from the Stratford-Upon-Avon town council survey conducted in
2011 (See appendices). Based on this information, as well as observations made during a site visit to the Shakespeare houses, the typical client of the SBT has been profiled as follows:
An adult aged 45 and upwards who is on holiday or on a day out and is visiting Stratford as a whole and the SBT specifically for the first time in order to appreciate the heritage and history of William
Shakespeare. The SBT does not attract many repeat or local visitors.

Substitutes
Substitutes available to a visitor to Stratford include boating on the canals of Stratford, exploring the streets of Stratford and going to the theatre. Further afield, Warwick castle is another alternative.
However, none of these alternatives satisfy the requirement for Shakespeare related history and heritage and are therefore not strong substitutes.

Threats of entry
Shakespeare related properties are a limited resource and the SBT holds all of them in Stratford. Thus, the natural barriers to entry are high. The only significant threat at this stage is the doubt over whether
William Shakespeare wrote the works attributed to him, but this is a threat largely outside of the control of the SBT.

Suppliers
The suppliers to the SBT are the staff, maintainers of the SBT properties and manuscripts and providers of the goods traded by the SBT, none of which hold power in the value chain.

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Porter’s 5 forces analysis

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3. Internal Analysis

3.1. Resource based view of the firm

3.2. VRIN and Threats to Sustainability

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3.3. Financial overview
The SBT generates the majority of the revenue it requires in order to fund its operations itself. Over the last 5 years revenue generated by the SBT has risen consistently in line with expenses. From a matching perspective, the primary expenses, namely property maintenance and the cost of traded goods, are covered by the revenue generated from tickets to the SBT properties and goods sold respectively. Other material revenue streams include the letting of leased estate and funding received.
In conclusion, the SBT is in a financially healthy position.

Graph showing the revenues, expenses and profits of the SBT over 5 years
£10000 000

£8000 000

£6000 000
Total revenue
£4000 000

Total expenses
Total profit

£2000 000

£0
2013

2012

2011

2010

2009

2008

-£2000 000

Source: The annual reports of the Shakespeare Birthplace Trust 2008 - 2013

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Graph showing the revenue streams of the SBT over 5 years
£10000 000
£9000 000
£8000 000
£7000 000
£6000 000
Other
£5000 000

Traded goods

£4000 000

Shakespeare properties

£3000 000
£2000 000
£1000 000
£0
2013

2012

2011

2010

2009

2008

Source: The annual reports of the Shakespeare Birthplace Trust 2008 – 2013

Graph showing the various expenditure streams of the SBT over 5 years
£10000 000
£9000 000
£8000 000
£7000 000
£6000 000

Other
Cultural and academic services

£5000 000

Traded goods cost
£4000 000

Maintenance of properties

£3000 000
£2000 000
£1000 000
£0
2013

2012

2011

2010

2009

2008

Source: The annual reports of the Shakespeare Birthplace Trust 2008 - 2013
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4. SWOT Analysis

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5. Strategic positioning
The SBT is already in a position of sustained competitive advantage due to its hold over the natural resources necessary in order to dominate in the market they are in. When defining the market as that of quality, historic, Shakespeare related services in Stratford, the SBT borders on a natural monopoly in the market. That said, in the scenario that interest in Shakespeare overall begins to wane, which although not yet the case could be inferred from the graph below, all companies in Stratford, including the SBT, will face a decline in revenue.
Graph showing a declining interest in the William Shakespeare brand.

Source: Google Trends

It is for this reason that the efforts of the SBT at this point in time are best spent not in trying to improve the quality of their existing product set and operations, but rather on insuring that the interest in Shakespeare as a whole is promoted in client segments they currently service as well as client segments they do not. As long as people are coming to Stratford to experience Shakespeare, the SBT houses will attract visitors. The strategic positioning proposed is as follows:
-

Forge strong complementary ties with other entities in Stratford and Britain as a whole which stand to benefit from the promotion of the life and times of William Shakespeare, in order to ensure that interest in the Shakespeare brand is maintained over the long term.

-

Focus on client segments (London for e.g.) which are underrepresented in the number of visitors both to the SBT and to Stratford as a whole.

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6. Executing the strategy

6.1. First proposal: Art Parade Event – Shakespeare A!ive.
We believe Shakespeare’s relevance does not end with his poems and his stage plays. His work has for generations inspired artists from all walks of life – writers, painters, musicians, film makers.
We also believe that art is a powerful medium of expression. Art parades work on this principle. For example, the CowParade has reached out to 250 million people across 79 cities over the last 15 years.
Over $30 million has been raised through worldwide charitable organizations through the auction of the cow sculptures.
Shakespeare A!ive is a proposal to create an art parade event on a yearly basis. A comparative study of art parades can be found in the appendices 8.2.
Offering-Proposed Plan:
As in art parades, we reach out to local and famous artists to paint a standard object, but with a new twist of showcasing different characters and moments inspired by Shakespeare’s body of work. These customised art objects will then be exhibited around Stratford (in public places such as parks, stations, historic landmarks and local chain stores) and iconic places within U.K (relating to Shakespeare such as the Globe theatre in London). At the conclusion of the event, an auction of these objects will raise money for a cause close to SBT. We plan to launch this event in 2016 on Shakespeare’s 450th Death
Anniversary as a memory of his artistic contributions to literature. Every passing year, the theme remains the same (i.e. Bringing Shakespeare’s work alive through art), though the medium (e.g. sculptures, canvas or products) can differ.
These art parades are practically self – funded. As seen in the past, each art work is sponsored by individuals, local organisations or corporates. The money hence raised helps execute the events: creating the standard object, hosting the auction and related events. The cost analysis is shown in the appendices 8.3.

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Key Aspects of the Plan:
Target audience:
An art parade usually attracts crowds of all ages. Our target groups will be:
-

Local artists: ceramicists, textile designers, illustrators, photographers, graphic designers and sculptors Local businesses & Corporates: Looking for publicity and association with ‘brand Britain’
Shakespeare Enthusiasts: Supporters who will come back to Stratford and SBT to have a look at the Shakespeare related art parade
Stratford residents: Provide residents & visitors with artistic fun. Family related activities that will attract families
Art supporters: People who promote/collect art from above-mentioned artists.

Add Complementors:
Complementors help to create something new and valuable. We will involve.
-

Artists: Promote the works of Shakespeare through art created by artists inspired by the works of Shakespeare.
Local organisations and corporates: Expand the SBT collaborations with businesses across
Britain
Local Stratford Councils: Work with the council to promote Shakespeare A!ive as well as local heritage spots and Stratford annual festivals

Increase footfall to Stratford and SBT:
Similar single-city art parades have shown significant impacts- Over 120,000 people enjoyed the art parade over 10 weeks. Footfall in the city centre increased by 40% and local businesses saw their customers increase by an average of 10.4% - some by as much as 50%. The project attracted new visitors to the city, and the key venues*.
* Source: http://www.larkin25.co.uk/larkin-with-toads.php

Increase presence in traditional & social media:
The event creates huge press coverage in traditional media formats such as magazines and newspaper. It also creates new engaging content for social media such as Twitter, Facebook and
YouTube. This also gives the visitors of the event to upload content through Instagram & blogs, which can then be connected to the other social media.

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6.2. Second proposal: Promoting the Shakespeare Birthplace Trust in London
This proposal involves marketing Shakespeare, Stratford and the SBT properties to international tourists in London and to Londoners in order to attract them to Stratford. According to a survey conducted in 2011 of visitors to Stratford, only 15% of the visitors were from overseas. Of the 85% visitors from UK, only 2% of the visitors were from London. We consider that there is a significant upside potential both in the percentage of overseas visitors and also visitors from London. Given that the benefits from this campaign will accrue not only to the SBT, but to all businesses in Stratford, the
SBT should consider partnering with other organisations in Stratford such as the Royal Shakespeare
Company in order to spread the costs.
Unique and Inimitable Offering-Proposed Plan
Currently, the SBT has not pursued the London market directly (feedback from SBT in the Appendix).
This proposal fits into our strategic recommendation as it would enhance visitor traffic from London to Shakespeare’s houses and also to Stratford. The sustainability of the visitor traffic in the coming years would be driven by the unique sense of history attached to the original houses of Shakespeare and also by Stratford’s visual appeal as a quaint English village having buildings with a unique English architecture and picturesque canals. This uniqueness positions the package of the houses and
Stratford in the league of Oxford and Cambridge.
We have used the FY2013 surplus of £425,000 noted in the SBT annual report as our budget for this proposal. Revenue Target: £1.73M
Key Aspects of the Plan
Set-Up a Store/Information Centre in Central London near a tourist hotspot - SBT ambassadors will be onsite to provide visit information, sell tickets directly and also sell souvenirs. As compared to package deals sold by tour operators, SBT Ambassadors will introduce exclusively the uniqueness of SBT to visitors. This will involve one-off set up cost estimated at £174K (please refer Appendix for cost assumptions).
Promotion through Leaflets and Kiosks at Key Tourist Flows
-

Kiosk in the British Museums (6,701,036 visitors in 2013)

-

Kiosk in London Marylebone

-

Kiosk in Heathrow Airport (starting with Terminal 5)

Promotion through Stalls and Leaflets in the Libraries initially in three Central London Councils
(Kensington and Chelsea Borough Council, Westminster City Council and Camden Council representing

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the ultra-high income population of London) and increasing this effort to all the Council run libraries across London in the long run.
Partnerships with libraries especially given the Charity status of SBT, will not result in any explicit charge from the libraries based on initial feedback. The target audience is students and young mothers going to libraries to the children’s play area. Library Notice Boards are keenly read and the SBT Leaflet will be clearly displayed on the Notice Boards.
Promotion through Leaflets only
-

Outside the Canary Wharf Station, Liverpool Street Station and Bank Station to cover the financial districts of London.

-

Outside museums and art galleries.

Promotion of the London initiative through Social Media:
-

Integrated digital marketing campaign in order to communicate our initiatives in London to our target market.

-

Special section on the first page of the SBT webpage covering the launch of the store in
London.

(Total word count: 2197 words)

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7. Reference list

1. M Porter, How Competitive Forces Shape Strategy. Harvard Business Review. (Vol 57, March
– April). pg. 86-93, 1979.
2. M. Peteraf, The Cornerstones of Competitive Advantage: A Resource-Based View, Strategic
Management. Journal, Vol. 14, No. 3, pg. 179-192, March 1993.
3. Pankaj Ghemawat, Commitment: The Dynamics of Strategy, (New York, Free Press, 1991).
4. Barney, J. B. (1991), Firm resources and sustainable competitive advantage, Journal of
Management, 17, pp. 99-120.
5. Stratford-Upon-Avon

District

Town

Council

Survey

2011.

http://www.discover-

stratford.com/files/seealsodocs/12647/Stratford%20Town%20Visitor%20Survey%20Results
%202011.pdf
6. Annual reports of the Shakespeare Birthplace Trust – 2008, 2009, 2010, 2011, 2012, 2013.
7. King Bladud’s pig parade: http://www.kingbladudspigs.org/king-bladud.html8. CowParade: http://www.cowparade.com/
9. Larkin 25: http://www.larkin25.co.uk/

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8. Appendices

8.1. Information from the survey conducted the Stratford-Upon-Avon district council during 2011.
-

Over 60% of visitors to Stratford are over the age of 45.

-

75% of visitors to Stratford are from the United Kingdom, 3% of which are from London.

-

33% of visitors to Stratford are first time visitors.

-

50% of those not planning a visit to the SBT houses have already visited the SBT properties on a previous occasion.

-

20% of visitors to Stratford are from the West midlands.

-

25% of visitors to Stratford site the SBT houses as the primary reason for their visit, 50% site the canals and the town and 25% site the theatre.

-

40% of day visitors sited the SBT houses as the primary attraction, while only 10% of day visitors from the West Midlands sited the same.

-

40% of visitors are day visitors from home, 35% are day visitors on holiday and 25% are overnighting visitors. Day visitors will spend on average 4 hours in Stratford and spend 66 GBP each while overnight visitors spend on average 92 GBP per day excluding accommodation.

-

40% of visitors to Stratford are adult couples, 23% are adult couples with children and 24% are solo adult couples travelling in groups.

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8.2. Shakespeare A!ive
8.2.1. Table comparing detail on art parades organised in the past.

Event

King Bladud's

Cow Parade

Shakespeare A!ive

pigs in Bath
Active years

2008

1999-2014

2016-?

Event

106 pigs

75-150 cows

100 objects/sculptures

Duration

3 months

2 -3 months

2-3 months

Where

Bath

Chicago

Stratford

Next

Lions of Bath

Spread to 79 cities

Across UK*/Incorporate

initiative

(2010)

(initially)

it in 'Shakespeare on the
Road'

Reach

30,000 (opening

250 million people across

weekend)

100,000 people**

the world as of today

Money raised £217000

Over £30 million

Highest bid

£21000 (Sir Peter

£90,000 (John Rocha in

Blake)

2010)

Sir Peter Blake

Oprah Winfrey, Ringo

Gordon Ramsay,

Starr, Kate spade, Lord

Quentin Wilson, David

Richard Rogers, Patrick

John Bradley, Simon

Hughes (extensive list)

Pegg, Sarah Douglas

Celebrity factor Source

http://www.kingb

http://www.cowparade.co

ladudspigs.org/

£125000 min**

m/

*at least 25 theatres are showcasing Shakespeare plays in Oct-Dec'2014.
Source: www.touchstone.bham.ac.uk
** Approximations, based on averages observed in public art festivals

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8.2.2. Cost Analysis of art parade.

Particulars

Costs (in £)

Initial expenses
Cost of object mold : £4000 and Cost of making object: £50-80

12000*

Creation of website for event

800-2000

PR Agency for publicity

1000-5000

Launch Party: Required to generate more sponsors

9000

Create a catalogue of customized art objects

1000-2500

Auction preview: All customized art objects displayed together for

9000

last weekend
Auction costs : offline and online

9000

Artist remuneration (15% of bid)

19050

Total expenses

45000-50000

Revenue generated
Sponsors Average Cost

1000

No of Sponsors

100

Revenue generated from sponsors

100000

Launch Party, Auction Preview & Offline Auction cover charge

30

No of expected guests - 300 each

900

Revenue generated from events

27000

Revenue generated from auction

125000

Total revenue generated

252000

* considering 100 objects
Please note:
Artists are paid a minimum of £100 or 15% - 25% percentage of bid amount
Average bid Price is £1250 per art piece
Sources: http://www.bathchronicle.co.uk/
: Justin Braithwaite (Organiser of Public Art events – example: King Bladud's Pig)

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8.3. SBT campaign in London (additional information)
Graph showing the number of visitors to the UK and other places (millions)
35
30
25
20
15
10
5
0
UK

London

SBT in Stratford upon
Avon

Source: http://www.ons.gov.uk/ons/rel/ott/travel-trends/2013/sty.html
London is the largest city in the UK and attracts over 16 million tourists of the over 32 million tourists that come to the UK every year.
Stratford-Upon-Avon Visitor Survey 2011
West Midlands
Warwickshire
Worcestershire
Leicestershire
Staffordshire
Lancashire
Hants / IOW
Oxfordshire
Northamptonshire
South Wales
Surrey
London / Middlesex
Nottinghamshire
Merseyside
Manchester
Kent
Derbyshire
Cornwall
Devon
Buckinghamshire

2005
17%
7%
5%
3%
4%
2%
2%
3%
4%
3%
3%
3%
3%
2%
2%
2%
2%