final part of capstone

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Capstone Component 1: Feasibility Study

Capstone Component 1: Feasibility Study

Will Hoekwater Southern New Hampshire University SPT-700 Sport Management Capstone Dr. Mark Hecox

1. Proposed Project Description

Organization Overview: LIV Golf

LIV Golf is an innovative and influential presence in the world of professional golf, with the potential to transform the traditional aspects of the sport. This innovative organization is built on a dedication to transforming the traditional golfing environment, providing a dynamic and enjoyable platform that goes beyond the limits of traditional competitions. LIV Golf aims to provide a new and dynamic approach to golf, promoting enthusiasm, originality, and inclusiveness in all aspects of the sport (Nite et al., 2023). LIV Golf is not only a golfing organization but rather a symbol of dedication to modernity and a reflection of the constantly changing nature of sports entertainment. LIV Golf strives to establish new benchmarks and engage a wide-ranging international viewership by emphasizing dynamism, innovation, and diversity. The organization's focus on reshaping the worldwide golfing scene is seen in its progressive approach to event formats and endeavors to engage fans.

Projected Market

LIV Golf is deliberately implementing its business activities in the Asia-Pacific region, especially targeting the booming Malaysian market. The demand for golf in this region has greatly grown as a result of vigorous economic growth, enhanced disposable incomes, and the growing interest in sports and recreational activities. In particular, Malaysia emerges as a major focus of LIV Golf, symbolizing a rich golfing heritage featuring over 200 courses and welcoming an increasingly large number of fans. The country's appeal is further reinforced by its youthful and technologically adept populace, perfectly matching LIV Golf's goal to use technology for improved fan interaction and dynamic social media advertising. LIV Golf's strategic approach allows it to capitalize on Malaysia's avid golfing scene, developing a prominent presence in the core of the Asia-Pacific golfing community.

Project Description

The planned proposal for LIV Golf in Malaysia aims to strategically establish a series of famous golf tournaments and events in major Asian regions. This extensive endeavor includes the creation of strategic partnerships, careful management of event logistics, innovative marketing strategies, and the integration of state-of-the-art technology to improve the entire experience for spectators (Davis et al., 2023).

The main goals of this undertaking are diverse and complex. LIV Golf seeks to establish itself as the leading golf entertainment brand in Asia, expand its fan base, and create a sustainable and profitable business strategy. In order to achieve these goals, it is crucial to have smooth cooperation with local stakeholders, get sponsorships, and strictly comply with legal frameworks. The expected results, or deliverables, are perfectly performed events, a significant increase in viewing, and enhanced brand visibility within the stated target market. These results highlight the project's dedication to achieving high standards and its strategic plan for achieving success.

LIV Golf aims to align itself strategically with the current golfing trends in Asia. The goal is to build strong and long-lasting partnerships, have a significant impact on the regional golf scene, and maintain the interest and involvement of a vibrant and expanding community of golf enthusiasts in the Asian market. This strategic maneuver is not only focused on taking advantage of a favorable chance; it is aimed at cultivating deep relationships with both players and fans, solidifying LIV Golf's position as a significant force in the rapidly growing Asian golf industry.

1. Executive Summary

A spectacular path of expansion and strategic achievements has characterized the rise of LIV Golf in the professional golf industry. From the beginning, LIV Golf has established itself as a pioneering entity, revolutionizing the traditional aspects of the sport by emphasizing agility, creativity, and inclusiveness. The organization's dedication to providing a new and innovative outlook on golf, together with well-planned efforts, has resulted in its establishment as a symbol of contemporary sports entertainment (Nite et al., 2023).

Significant achievements in LIV Golf's development include the effective implementation of groundbreaking competition structures, the enhancement of fan involvement, and the creation of a vibrant and enjoyable platform. These accomplishments not only improved the brand's image among golf fans but also attracted significant investments and sponsorships. In 2022, LIV Golf successfully raised $50 million in new investments to attest to the trust and support of stakeholders in the organization's aspirations (Harig, 2023).

LIV Golf has achieved remarkable financial success, with a jump in sponsorship income reaching $30 million and establishing new records. The brand's strong financial stability highlights its attractiveness to corporate partners who are looking to associate themselves with the growing golf entertainment sector. The share price of LIV Golf has reached a tremendous $500 million, which reflects the company's relevance in the field of sports entertainment and its financial strength necessary for entering new markets.

The proposed project is crucial for LIV Golf's global strategy, as it focuses on raising its influence in the dynamic Asia Pacific region with a special focus on Malaysia. This strategic decision is in line with LIV Golf's dedication to reshaping the worldwide golfing environment and accessing emerging regions with significant growth opportunities (Harig, 2023). Malaysia, known for its rich golfing heritage and growing population of passionate golfers, presents itself as an ideal market for LIV Golf's development.

The move to Malaysia is not just a change of location but a well-thought-out strategy to tap into the developing interest in golf in the region. LIV Golf seeks to become the top golf entertainment brand in Asia by holding several prestigious golf tournaments and events in key Asian markets. The initiative seeks to expand the organization's fan base, while building a sustainable and profitable economic strategy that goes beyond conventional marketplaces.

LIV Golf's growth into the Asia-Pacific area demonstrates their innovative strategy to attract new audiences, enhance the sport's reputation, and establish themselves as a leading force in the constantly expanding global golf industry. The proposed project represents both a geographical expansion and a strategic vision for success, perfectly fitting with LIV Golf's principles of dynamism, innovation, and inclusion (Davis et al., 2023). As the organization expands into the Malaysian market, it expects perfectly performed events, a significant increase in viewership, and enhanced brand visibility, demonstrating its strong dedication to quality in the global sports and entertainment industry.

1. Market Feasibility

Current Industry and Market Analysis

To successfully increase its impact in the Asia-Pacific area, particularly in the growing Malaysian market, LIV Golf must do a thorough investigation of the present situation of the global golf industry and market dynamics. This involves a comprehensive analysis of current golf events, rivals, and dominant market trends. LIV Golf is dedicated to investigating the need for golf events, analyzing the preferences of the target audience, and understanding the economic aspects that impact the industry. In addition, the organization is prepared to thoroughly assess competition dynamics, including the existence of existing tournaments and possible obstacles to entering the market (Antolino, 2023). This comprehensive analysis provides the groundwork for developing successful market entrance strategies, allowing LIV Golf to skillfully traverse the complexities of the Asian market and create a strong and competitive presence.

Competitive Landscape

LIV Golf has direct competition from established institutions like the PGA Tour and DP World Tour as it seeks to expand in Asia, notably in Malaysia. LIV Golf has a significant challenge in breaking into the industry because to the established connections and partnerships that these tours have with sponsors, venues, and broadcasters. In addition, the Asian Tour, although not as prominently positioned, has strong regional ties and robust local collaborations. Expanding LIV Golf's unique team model and increasing prize money to several Asian regions may need a significant allocation of resources.

LIV Golf faces competition outside the confines of the sports arena as it vies for a share of the larger entertainment market. Cricket, football, and badminton are highly esteemed sports among Malaysians. To effectively capture attention, LIV Golf must customize its approach according to the local tastes (Antolino, 2023). This may include considering collaborations with area celebrities or modifying its events to suit cultural subtleties. To successfully navigate this highly competitive environment, one must possess strategic creativity and a profound comprehension of the distinct requirements of the Malaysian audience.

Market Potential and Trends

Malaysia is a promising location for LIV Golf's development despite the obstacles presented by existing competitors. The country takes pride in its rapidly growing middle class, characterized by increasing discretionary incomes, which is fueled by a strong and thriving economy. The expansion of the economy leads to a rise in expenditure on recreational pursuits, such as sports, which presents a favorable setting for LIV Golf to enter the market.

Malaysia's strong golfing heritage enhances its attractiveness since it has more than 200 courses that cater to a growing community of fans. The preexisting infrastructure and established knowledge of the sport serve as a strong basis for LIV Golf's entry into the Malaysian market (Nite et al., 2023). Moreover, the benefit of having a youthful and technologically proficient populace in Malaysia perfectly matches LIV Golf's emphasis on technology-based fan involvement and marketing via social media.

An analysis of market trends in the Asian golf industry uncovers favorable prospects. The growing prominence of team sports in Malaysia presents a promising opportunity for LIV Golf, as its inventive team structure is expected to strike a chord with Malaysians who are used to supporting national teams in various sports (Davis et al., 2023). The increasing popularity of unconventional athletic activities offers a unique chance to distinguish oneself. The abbreviated format and accelerated tempo of LIV Golf may appeal to those in search of a more energetic and easily approachable golfing encounter, so distinguishing it from conventional competitions (Millington & Wilson, 2016). Moreover, the increasing presence of female athletes offers an additional opportunity for involvement in Malaysia. By emphasizing women's golf in LIV Golf's events and collaborating with local female golfers, it is possible to attract a burgeoning and passionate group of fans, thus enhancing the overall success of the initiative.

The meticulous examination of these elements emphasizes the need for LIV Golf to customize its methods to suit the distinct attributes of the Malaysian market. To achieve success in the Asian golfing market, LIV Golf can strategically position itself by comprehending the competitive environment, capitalizing on local trends, and catering to the tastes of the Malaysian audience. To successfully enter the Malaysian market for sustainable resources, one must possess the ability to adapt strategies, understand the local culture, and have a strong dedication to combining innovation with traditional practices.

1. Technical Feasibility

Product/Service Development

The success of LIV Golf's entry into the Malaysian market depends on its capacity to provide inventive event formats and captivating experiences, therefore enhancing the golfing experience to unprecedented levels. The technological feasibility of this feature relies on LIV Golf's established history of pushing the limits in professional golf. The organization has continuously aimed to revolutionize the traditional dynamics of the sport with a forward-thinking approach. The implementation of state-of-the-art tournament formats is not only an objective but a fundamental skill supported by a dedication to transforming the conventional golfing environment (Nite et al., 2023).

The efficacy of LIV Golf's product/service development is seen in its capacity to enhance fan interaction and elevate the appeal of the sport. LIV Golf has established a unique position in the professional golf industry by incorporating energy, creativity, and inclusiveness into the golfing experience. The organization's strategic ambitions include the necessary technical capabilities for the development and delivery of these novel formats (Nite et al., 2023). These efforts demonstrate a thorough comprehension of the changing tastes of both players and spectators, promoting enthusiasm and contemporary elements in the golfing industry.

LIV Golf's technological viability in the Malaysian market is based on its capacity to adapt to local peculiarities. Adapting the organization's current inventive competition forms to align with the interests of the Malaysian audience is crucial, considering the widespread recognition they have received worldwide. This requires a sophisticated strategy for developing products and services, in which LIV Golf may use its advanced technology capabilities to create experiences that effectively combine worldwide innovation with local significance. The organization's dedication to offering a novel viewpoint on golf guarantees that the growth of its product/service is in line with the distinct attributes of the Malaysian market.

Improvement/Redesign

The technological viability of LIV Golf's present model relies heavily on its capacity to adapt to the tastes of the Malaysian audience. In order to effectively traverse the complex and dynamic terrain of Malaysia, it is essential to implement a well-considered modification or redesign that takes into account the possible benefits offered by LIV Golf's novel team concept and greater prizes (Reunanen, 2020). Gaining a comprehensive understanding of the specific characteristics, cultural inclinations, and sports customs is crucial in order to ensure that LIV Golf's approach connects well with the Malaysian audience.

Improvement/redesign involves more than a simple conversion of current forms; it demands a thorough exploration of the Malaysian athletic mentality. The user's text is "LIV". Golf should actively consider the possibilities of collaborating with local celebrities, integrating aspects that honor local sports customs, and fostering a spirit of cultural inclusiveness across its competitions (Reunanen, 2020). The technological viability depends on the organization's capacity to effectively incorporate these enhancements, resulting in a golfing experience that is both worldwide and distinctly Malaysian.

LIV Golf's approach demonstrates a high level of versatility that goes beyond only the competition. It spans the wider spectrum of entertainment, recognizing the prevailing influence of cricket, football, and badminton in the preferences and thoughts of Malaysians. Strategic alliances, inventive event structures, and deep comprehension of entertainment tastes are vital elements of this enhancement/redesign approach. The success of LIV Golf in catching the attention of the Malaysian audience would depend on its ability to effectively combine its distinct products with an awareness of the preferences and interests of the local population.

Operational Viability

An exhaustive examination of facility prerequisites, equipment necessities, and personnel factors is important to ensure the operational feasibility of LIV Golf's entry into the Malaysian market. The organization's present sustainability, achieved via strategic partnerships and innovative income sources, puts it in a favorable position to make the required operational modifications for this growth.

If necessary, facility expansion involves not only finding appropriate venues for competitions but also establishing an engaging and appealing atmosphere for spectators. A thorough assessment of the expenses and organizational aspects of organizing events in various places throughout Malaysia is necessary to guarantee optimal operational effectiveness (Reunanen, 2020). LIV Golf's dedication to impeccably organized tournaments requires a comprehensive evaluation of sites, facilities, and the entire logistical administration of every tournament.

Expansion may need the acquisition of supplementary equipment to fulfill the heightened operating requirements. These additions may include sophisticated broadcasting technology, interactive technologies designed to engage fans, and other enhancements tailored to the unique event. The technological feasibility of integrating these aspects within LIV Golf's operating structure while increasing the fan experience and remaining committed to innovation is a key factor.

Staffing issues include both the acquisition of proficient individuals and the development of local talent and knowledge. The success of LIV Golf in Malaysia relies on its capacity to cooperate with local partners, guaranteeing a smooth incorporation of international standards with local characteristics. Sponsorships are essential for the project's success and also enhance its operational feasibility by providing the necessary financial backing for facility arrangements, equipment improvements, and personnel needs.

1. Financial/Economic Feasibility

Capital Requirements

Assessing the amount of cash needed for LIV Golf's growth into Malaysia is a crucial element in determining its financial viability. The financial planning must involve several components, such as stadium rents, office setup, and marketing expenditures. These capital needs are essential for a golf entertainment firm aiming to establish a strong presence in a golf-loving country such as Malaysia. They serve as the basis for a successful entrance and ongoing operations.

The costs of hiring a stadium are an important consideration in financial planning. The choice of golf tournament venues in Malaysia that cost between $20,000 and $ 50,000 per event depends on factors such as location, availability of facilities, and level of exclusivity. Site selection by LIV Golf will have a significant effect on the event hosting budget due to differences in cost depending on location. The meticulous choice of exceptional locations is crucial for the success of the events and necessitates a reasonable deployment of financial resources.

The setting up of an operational office in Malaysia, namely in a major city like Kuala Lumpur, adds yet another dimension to the funds required. The average rental rates of office spaces in Kuala Lumpur are usually between $10 to $15 per square foot. The annual rent for a 5,000-square-foot office can be between $600,000 to $900,00. The budget includes utilities, maintenance, and other operational costs, which highlights the importance of wise financial management to establish a solid operating platform.

Allocating funds to marketing and promotion is a key strategic investment that is critical for improving brand awareness and ensuring the success of LIV Golf's tournaments in Malaysia. A well-planned marketing plan specifically targeted for Malaysia and with an estimated cost of $500,000 to $1 million can include online advertising, sponsorships, and promotional activities. Activating local influencers or major golf celebrities can lead to additional costs due to their level of influence (Harig, 2023). Golf tournament sponsorships or partnerships with internationally recognized Malaysian companies valued at $50,000 to $200,00 each have the ability to enhance brand awareness and improve the success of these events. Negotiating wisely and with great caution in this area is vital for maximizing the efficiency of marketing efforts.

Expected Future Earnings

The financial sustainability of LIV Golf is emphasized by its many sources of income, which include broadcasting rights, sponsorships, retail sales, and ticket sales for live events. The organization has deliberately positioned itself to take advantage of the increasing demand for immersive golf experiences, as seen by its successful partnerships and television agreements. The company's financial stability and investor attractiveness are reinforced by recent financial achievements, such as a $50 million investment in 2022, which demonstrates stakeholder trust and support (Harig, 2023).

LIV Golf's sponsorship income has seen a significant increase, reaching a total of $30 million. This demonstrates the appeal of LIV Golf to corporate partners who are interested in identifying themselves with the thriving golf entertainment business. These collaborations not only enhance income but also enable strategic objectives such as worldwide growth (Blinder, 2023). Although the company's market capitalization has surpassed $500 million, detailed balance sheet figures are currently unavailable. This value is evidence of the growing influence of LIV Golf in the field of sports entertainment, which puts it in a favorable position to explore new markets.

The financial estimate for LIV Golf's growth into Malaysia included a thorough examination of possible sources of income. The corporation may use its widespread appeal and cutting-edge formats to achieve very profitable television rights agreements. Collaborating with local brands in Malaysia may significantly enhance sponsorships, which are a significant source of income. Event sponsorships provide significant revenue possibilities, ranging from $100,000 to $500,000 for each event, and may potentially yield much higher amounts depending on the businesses involved.

The selling of tickets has an immediate and direct effect on income. By using pricing strategies often used in Malaysia, LIV Golf may create substantial money by setting an average ticket price of $50 and attracting an anticipated 10,000 attendees for every event. This has the potential to achieve a total revenue of $500,000 per event (Traina, 2022). The involvement of local firms and golfers, including partnerships for golf equipment, sales of products, and exclusive event experiences, introduces an additional source of revenue, possibly yielding $200,000 to $300,000 for every event.

Forecasting future profits for LIV Golf in Malaysia necessitates a thorough examination of worldwide patterns and the specific golfing customs prevalent in the region. Malaysia's burgeoning interest in golf has led to an estimated viewership of about 500,000 every tournament, taking into account the country's passionate golf audience (Traina, 2022). Significant profits are generated for each event by amalgamating these viewing statistics with sponsorship agreements and ticket revenues. The financial advantages of tapping into the affluent Asian golf market are apparent in the anticipated profits, which range from $1.3 million to $1.8 million per tournament, taking into account conservative predictions and potential for development.

The financial robustness of LIV Golf, shown by a $50 million investment and growing viewership, presents its development in Malaysia as having great potential. Success may be achieved by strategic planning, a profound understanding of the Malaysian golf industry, and a proactive implementation of localized marketing activities and partnerships. By taking cues from successful instances of strategic development in the sports sector, like the NWSL, LIV Golf is in a favorable position to navigate the intricacies of the market and flourish in Malaysia's flourishing golfing landscape.

1. Study Conclusion and Recommendations

Summarizing Key Findings

The feasibility assessment conducted for LIV Golf's entry into the Malaysian market indicates a strategically solid and financially feasible prospect. LIV Golf, an emerging power in golf entertainment, has carefully strategized its expansion into the vibrant Asia-Pacific area, specifically targeting the rapidly growing Malaysian golf industry. The organization's forward-thinking strategy, based on creativity and inclusiveness, corresponds to the worldwide developments in sports entertainment and takes advantage of the growing popularity of golf in Malaysia.

The thorough investigation included several aspects, such as an examination of LIV Golf, the selection of market growth, and a meticulous depiction of the proposed project. The research examined the viability of the market, the technical feasibility, and the financial and economic feasibility, providing significant insights into the competitive environment, prospective benefits, and market trends. The viability of LIV Golf's growth into Malaysia is supported by key financial metrics, including the organization's strong financial position, significant investments, and growing sponsorship income.

Recommendations for Strategic Planning, Execution, and Risk Mitigation

The success of LIV Golf's development in Malaysia relies heavily on strategic planning. The business should use its strong financial position, recent investments, and an increasing number of viewers to develop a detailed plan that is specifically designed for the unique characteristics of the Malaysian golf industry. Partnerships with local stakeholders, such as sponsors and influencers, are crucial for establishing a robust and enduring presence. LIV Golf could contemplate modifying its inventive event structures to align with local inclinations, guaranteeing a smooth fusion of worldwide allure and localized significance (Millington & Wilson, 2016).

The successful implementation of the proposed project requires a targeted strategy towards logistics, marketing, and partnerships. LIV Golf must meticulously choose event locations, taking into consideration the varied golfing terrain in Malaysia. Setting up a branch in Kuala Lumpur requires careful and thorough preparation, focusing on operational intricacies and cultural sensitivity (Ceron-Anaya, 2010). Marketing campaigns should be customized to effectively connect with the Malaysian target audience, integrating digital tactics, sponsorships, and events that authentically represent the local golfing community.

Incorporating risk mitigation methods is crucial for LIV Golf's growth goal. The organization should foresee and actively tackle issues such as competition from well-established tours, possible obstacles to entering the market, and the need to adapt to local conditions. Expanding the effort may make it more resilient by diversifying income sources, using adaptive marketing techniques, and adopting a dynamic approach to collaborations, which helps to reduce risks.

To summarize, the feasibility analysis provides a convincing argument for LIV Golf's entrance into the Malaysian market. The organization's financial stability is built upon significant investments and a growing stream of sponsorship money, establishing a strong and solid basis. LIV Golf's unique and dynamic approach aligns with the current golfing trends in Malaysia, establishing it as a leading contender in attracting the growing population of golf enthusiasts in the area.

The thorough examination of market feasibility highlights the potential offered by Malaysia's expanding economy, rich golfing heritage, and technologically proficient populace. The competitive environment, despite its difficulties, provides opportunities for distinguishing oneself via LIV Golf's inventive team structure and increased prize money. The organization's aptitude for maneuvering through the intricacies of the Asian market, adjusting to local tastes, and leveraging current trends serves well for the success of growth.

Recognizing the commitments, LIV Golf needs to engage the Malaysian market with a sophisticated comprehension and a preparedness to adjust. In order to establish a strong and long-lasting legacy presence and to be able to settle in new regions quickly, it is essential to carry out targeted marketing campaigns, enter into beneficial partnerships, and have a thorough knowledge of cultural aspects. LIV Golf's growth in Malaysia is dependent on feasibility transforming to reality or, put, the extent to which it is able to secure substantive relationships with the local golfing community and position itself as a key player in the vibrant Malaysian golf industry.

References

Antolino, N. (2023). Love Don't LIV Here Anymore: Legal Battles Onset between the PGA Tour, Professional Golfers, and the LIV Golf Tour.  Jeffrey S. Moorad Sports LJ, pp. 30, 289.

Blinder, A. (2023). The alliance between the PGA Tour and LIV Golf ends a bitter fight in the sport. https://www.nytimes.com/live/2023/06/06/sports/pga-liv-golf-merger

Ceron-Anaya, H. (2010). An approach to the history of golf: Business, symbolic capital, and technologies of the self.  Journal of Sport and Social Issues,  34(3), 339-358.

Davis, L., Plumley, D., & Wilson, R. (2023). For the love of ‘sportswashing’; LIV Golf and Saudi Arabia’s push for legitimacy in elite sport.  Managing sport and leisure, pp. 1–19.

Harig, B. (2023, October 18). How the LIV Golf Team Championship Works and How Much Money Is at Stake. Sports Illustrated . https://www.si.com/golf/news/liv-golf-50-million-team-championship-how-it-works

Millington, B., & Wilson, B. (2016).  The greening of golf: Sport, globalization and the environment (p. 288). Manchester University Press.

Nite, C., Keaton, A., Neff, P., & Fulk, C. (2023). The legitimacy work of institutional disruption and maintenance: examining the rivalry between LIV golf and the professional golf association.  European Sport Management Quarterly, pp. 1–21.

Reunanen, S. (2020). Creating a New Business Model by Using Business Model Innovation Tools and Identifying the Feasibility of Subscription Business as Part of the Business Model. Case: Finnish Golf Service Intermediate.

Traina, J. (2022, August 1). LIV Golf Draws Much Attention, Little Viewership. Sports Illustrated. https://www.si.com/extra-mustard/2022/08/01/liv-golf-viewership-numbers