Esporte Interativo and The Content Distribution Dilemma: A Case Study
DOI:
https://doi.org/10.5585/podium.v5i1.149Keywords:
Esporte Interativo, Media, Turner, Strategy, Scenarios.Abstract
This teaching case describes the trajectory of the Brazilian media group Esporte Interativo (EI), a company started by three young entrepreneurs and dedicated to produce and distribute sports content across multiple platforms. The dilemma is centered on CEO and co-founder of the group, Edgar Diniz, who is facing a new phase in the company with the impending sale to Turner, television arm of Time Warner, in late 2014. The clash of business models may pose challenges to the company's management, which must decide the future strategic direction. The information used in the case are real and were obtained through in-depth interviews with the founder and CEO, the other founder and Vice President of Digital Media and the Vice President of Business Development, as well as desk research and literature review. It is suggested that the case can be used for postgraduate students in Business Strategy disciplines, with the following educational objectives: a) business ecosystems analysis and reconfiguration of industries from the changes generated by the development of Information and Communication Technologies; b) understanding of strategic issues related to the management platforms and dynamic "winner-takes-all" where the rewards for achieving leadership are disproportionate to the benefit that one has on those who do not reach it, which is typical of networking markets; c) Discussion of the types of innovation (incremental and disruptive) and its consequences for new entrants and incumbents; d) planning with scenarios.