Olympian Competition Harvard Case Solution & Analysis

STRATEGIES TAKEN BY IOC:

Minimum price vs.Not setting one: The minimum price bid strategy adopted by IOC stated that IOC has clearly set its target and sent the signal to each and every interested party which are right now 3; ABC, NBC and CBC. In this bid process, IOC set a minimum limit for the bid of $ 300 million, while in the multiple setting of bid, it shows that IOC is not clear what price it should have to fix and which would be beneficial for it. The difference is that the minimum bid price sends straight signal to those who are willing to offer lower than this and will automatically eliminate them from bidding. This saves much time for IOC to concentrate on the reasonable offer while in the not setting a strategy option there will be a lot of bidders that will make the bid.

Multiple rounds of bids Vs single round of Sealed Bids:The multiple rounds of bid and single round of sealed bid have difference of settlement. The multiple rounds of bids allow an auction based strategy in which the highest bid will be selected whereas on the single round bidding, the bid price is confidential and each one is allowed to make one authentic bid, which is then selected by IOC. The highest bid will be selected that will exceed the secret minimum price.

Sharing revenue ex post: This process requires the bidder to give a share of profit from their revenue in addition to the bid price. This requires a disclosure of their complete profit statements of the company.

Selling the right of several games in a package and Bargaining preemptively with a single network:In this strategy, IOC selects only one like it had selected in the case “NBC” and a private negotiation held between the two, which includes the selling of rights with a package that will allow NBC to generate more revenue than its competitors.In addition, IOC having high bid price will have some long term agreements.

The most effective that will be suitable for IOC is the minimum bid price that will not leave the position of IOC at risk, like in others in which the competition became intense and others were likely to protest, which would damage IOC’s reputation.

STRATEGIES TO AVOID TO HIGH PRICES:

The strategy that needs to be considered in order to avoid the bid price to increase is to protect the privacy of each player in the market. Proper rules and regulation, policies and procedures need to be devised by IOC for the bidding process to protect from intense competition. As such no rules and one strategy have been adopted by IOS, which has created many conflicts.

STRATEGY ADOPTED FOR POST 2008 GAMES NEGOTIATION

IOC needs to make his bidding criteria transparent. This enables the bidders to understand all the conditions of bidding and its selection criteria. IOC also needs to consider only that process, which will be universal for all types of bidders unlike they did before in different cases. Previous strategies have damaged IOC’s reputation and now it has to make all of its procedure transparent. The selection criteria should be that to select several bidders from the potential one and then continuing the process with them as depicted in their transparent policy.

IOC POLICY TOWARDS INTERNET:

Although the current potential of revenues from the internet is low due to the less awareness as provided in the case,how ever it can be another source of generating revenue since the potential for growth is high in the future, which means use of technology is not imperative for the survival, but it will be in the future. IOC needs to develop a long term plan for shifting to technology, so that it can effectively co-op with that.

DOES THE IOC DESERVE Blueberry's ASSESSMENT OF ITS BUSINESS SKILLS?

In early years, IOC has been using different strategies and techniques and it was sincere and faithful towards the bidders. Although the strategies that IOC has taken provided it with substantial revenues because it is evident that if it makes a biased decision for selection then it will create a bad image of it.Moreover, it will put IOC in a huge trouble. Therefore, it has adopted a tactic in using strategies by selecting different bidders in each time.

However, all strategies have their time in which they will mature and move towards the declining phase. Jacques Rogge, the new leader of IOC, has made significant changes in IOC. These changes include introducing bidding process that will be transparent to all and each one will be given equal rights and proper reasoning of its final decision of selection and rejection..................

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Olympian Competition Case Solution Other Similar Case Solutions like

Olympian Competition

Share This