Lesson 19ª

 

 

 

 

 

   

 

Differentiation Advantage Maintenance

Even if it might seem that an enterprise achieves a competitive advantage by basing it in lower costs than those of its competitors, we have to say that an enterprise will be consolidated if it were to achieve an advantage over competitors if it is based on differentiation. This is a stable and solid advantage which in some measure "guarantees" the future of such enterprise.

A cost advantage is vulnerable due to the fact that any advantage is costs possessed by an enterprise today can be broken just by external changes such as the modification of a specific market characteristic.

ATTACHMENT 7.- THE BEST FOOTBALL PLAYER IN THE WORLD

The world of sports is always very graphical for strategy examples. A case of competitive advantage in differentiation is very familiar to it. Only one team can have the best player in the world. Evidently, there is only ONE best player. It represents a unique, different resource as well as a fountain of profit in economy terms. Whenever in conjunction to a winning team, it is also a source of profit in sport terms since it consequently brings in titles and trophies. Because of this resource, fans are willing to pay more money to watch him/her play and sponsors are willing to pay more publicity for their commercial brand. It is clear, isn't it?

Until this point, we could be talking about any sport, without any distinction. However, if we are talking about football, everything becomes magnified. Ronaldinho is without a doubt the best player in the World. His records of achievements in an individual or collective level are proof of this as we shall see at the end of this case.

This resource is only available to F. C. Barcelona at club levels, and Brazil, as his national team. This is the difference between both of them and their competitors. Both of them have been awarded titles (Champions League in Paris on 17th May, 2006 to F. C. Barcelona and World Cup 2002 in Japan-Korea to Brazil), but it also transmits other values: joy, a show, quality, etc. This is a different resource that places them, initially, above their competitors.

Publicity is also a strong point. Ronaldinho had an income of 23 million euros in the year 2005. He displaced the English player from Real Madrid, David Beckham, as the best paid player in the world, according to the classification published by the magazine 'France Football'. His publicity incomes are around 14 million euros. Besides sports, we have to consider what both the club and national team gain as an intangible benefit from this player's image. This "intangible" benefit could easily be valued in several million euros.

Due to all of this, having Ronaldinho as a player constitutes a differentiation competitive advantage for F. C. Barcelona and Canarinha (Brazil).

His record of achievements in an individual level are the following:

• FIFA World Player 2004 2005 , granted by FIFA to the best football player in the world.

•  1 FIFpro World Player 2005 , granted by FIFPro , the world association of professional footballers.

•  1 Golden Ball 2005 , granted by the French magazine France Football , to the best player in European football.

•  1 Golden Onze 2005 , granted by the Italian magazine Onze Mondial , to the best player in European football.

•  Bronze Onze 2004 , granted by the Italian magazine Onze Mondial , to the third best player in European football.

•  2 World Soccer Award to the best player in the World ( 2004 and 2005 ), granted by the English magazine World Soccer .

•  Chosen the best forward in Champions League 2004 2005 , by UEFA .

•  Best goal in Champions League 2004 2005 , by UEFA .

•  Top scorer in the Confederations Cup in 1999 .

•  Chosen best sportsman in Latin America in 2005 .

And, at a collective level,

National championships

•  2 Spanish Football league FC Barcelona , seasons 2004-2005 2005 2006 )

•  1 Spanish Supercup ( FC Barcelona 2005 )

International cups at a Club level

•  1 Champions League de la UEFA , ( FC Barcelona 2005-06 )

Cup with National Selection (Brazil)

•  1 Football World Cup in 2002

•  1 America Cup in 1999

•  1 Confederations Cup in 2005

•  1 Football World Cup U-17 in 1997