World Wrestling Entertainment Harvard Case Solution & Analysis

Case 12

World Wrestling Entertainment


WWE started its operations in 1952 under the responsibility for McMahon Sr. as the Capitol Wrestling Federation. Since 1952, the WWE has experienced three name changes. The WWF saw such stars like Hulk Hogan, Andre the Giant, Bret Hart, and different endless wrestlers. Throughout the time of WWF, Vince McMahon brought his item to pay for every perspective that made enormous income for WWF at that time. The WWE is not only the greatest wrestling company in the United States, yet it is additionally the greatest wrestling company in the world. The business has attained such great success by spreading the WWE everywhere throughout the world through global development. They have gone worldwide into more than 145 countries.

Problem Statement:

Problem identified in the case was the decreasing interest of people towards watching WWE during 2001 to 2005. The reason behind this decline in interest was their switch to other reality shows like Jackass, Survivor and Fear Factor. The growth rate of the business was slow in that time because the audience especially the younger kids were more interested in watching other shows. Another problem that WWE faced in the same era was the shortage of wrestlers as many of the superstars had moved into Hollywood. In addition to that, some superstars had some health issues that prevented them to be a part of WWE anymore. However, there were some superstars like Triple H, Kane and Undertaker, who stuck with WWE in bad times and helped the company to keep floating in the storm.


To be such a giant as WWE was, the company needs to put some efforts to reach that position and maintain the level. One of the major strengths of WWE is the fact that the company is known to be a wrestling company with the element of entertainment in it. Audience views WWE as something similar to soap opera or sometimes a tragic sad story. As the company is an entertainment business, hence the company has to face certain external forces to survive in the business.

Porters Five Forces Analysis:

Threat of new entrants:

For any business, the threat of new entrants is always high but when it comes to the wrestling industry; the industry is dominated by WWE as a major and the strongest player in the market. For a new business, the entrance into the business can be difficult but it is just a matter of the firm being successful. Even though the major product in the wrestling business is the wrestling itself but the company can differentiate itself by adopting various different styles of wrestling to add more entertainment in the business. WWE did the same by doing a fusion of wrestling along with entertainment with some top wrestling characters and story lines. Other wrestling companies like MMA, UFC and TNA focus only on the wrestling and the activities that go inside the ring. In short, threat of new entrants is high in this business because all you need is money to meet the expense of a wrestling ring with some players and a suitable location.

Industry Rivalry:

It is a fact that now days, the wrestling business has become very attractive and is filled with bulk of promotions but still, the industry rivalry is low in the market. The rivalry in the industry was very high during the 90s era but fell steeply in 2000s because of the availability of substitutes. As of now, the size of the competitors is not the same. WWE is known to be a giant in the wrestling industry while the other wrestling companies like MMA and UFC are still making efforts to find out its share in the market.

Bargaining Power of Buyers:

The bargaining power of buyers in the wrestling industry is found to be low as the fans of wrestling will not have to go far just to watch the match. Most of the buyers (fans) wait for the matches to come in their city. In addition to that, the total percentage of buyers spending on the wrestling industry is going to be low day by day. However, brand loyalty is a factor that plays an important role if a spectator has been a fan of a superstar for his whole life.

Threat of Substitutes:

The threat of substitutes is always high in the wrestling industry because there is always high availability of substitutes. Substitutes available for the wrestling industry include NFL, NBAQ, MMA, Boxing and UFC as well. The companies mentioned are not specifically in the wrestling business but are still able to please consumers in some way or the other.

Bargaining Power of Suppliers:

Bargaining power of suppliers is found to be low in the wrestling industry because of the exclusive contracts with the suppliers. The wrestlers have.................................

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