WWF Case Study
1. Briefly describe the situation described in the case:
a. The case basically describes the initial start-up and growth of the wrestling industry. At the beginning the McMahon’s had a perceived monopoly within the wrestling industry. Vince McMahon took the WWF, which his father began, and expanded it beyond any expectation. He created story lines and merchandise demand that help propel the WWF into the wrestling entertainment leader. Ted Turner worked with the WWF to broadcast the shows and he saw the demand and wanted a piece of the action. When Ted Turner approached McMahon to purchase some shares, Vince McMahon declined the offer. Ted Turner, known for going after what he wants, decided to go after the market created by the WWF and purchased the smaller operation that was sold by McMahon previously in Atlanta, Georgia. Turner hired Eric Bischoff and they both became extremely aggressive and tried to gain their own support for fans over the WWF. Bischoff created a different format that attracted more fans and negations took place that tried to lure old WWF wrestlers over to the new WCW create by Turner. Turner and Bischoff were also able to use the vast amount and levels of entertainment avenues that Ted Turner owned and had control over. The WCW expanded their time slot and became aggressive for the timing of the programming versus the WWF. Both programs tried to create their own characters and maintain the story lines to attract and maintain fans. The case study describes the process in the negotiations for Bret Hart—his heart tells him to stay with the WWF, but they can no longer afford him or write him into the story line. The WCW is willing to pay him what he desires, but Hart is more interested in the overall wrestling morale than a paycheck.
2. Review the latest news regarding the WWE:
The World Wrestling Entertainment group has expanded and from the looks of their website, they have continued to utilize the model that was created by Vince McMahon. They continue to update fans on new storylines and characters and have voting polls on the website that let fans weigh-in on how they feel that things will shake out. Fans are able to buy tickets to tour appearances—the WWE has created a tour that travels around the United States and fans can purchase tickets and see the wrestling tournaments live. At the event, fans are able to purchase all the memorabilia for their favorite WWE wrestler. The WWE has expanded their scope to bring the wrestling to the fans. They are also promoting with some more “sexier” ads by bringing in female wrestlers and characters, which help make the storylines more appealing to both sexes while creating an almost romantic twist with all the ups and downs with a love-triangle.
3. Evaluate the WWE’s financial situation:
The WWE’s financial situation is performing well, as stated on their investor relations portion of their website. [next page]