Evaluate NHLE’s value chain?
NHLE’s value chain is very much about its marketing and sales and its service. The company is engaged in selling apparel and products related to the NHL, so its primary goal is to make sure that it is effectively messaging the value proposition for its company and ensuring that the products are delivered as promised.
What does the overall value chain for this sector look like (raw material to delivery)?
The overall value chain sees apparel produced with cheap materials, companies target consumers, outbound logistics get the apparel to storefronts, effective marketing lure in customers according to team affiliations, and retail professionals complete sales.
Which portions is NHLE currently engaged in?
NHLE is engaged in the outbound logistics, the marketing, and the service part of the industry.
How would it change under the three variants of the expansion opportunity?
If the entity opened its own stores, it would need only to deal with the last three legs, just the same as today. Retaining control over the facility would require adherence to all portions. Giving over control to a management company could allow the company to focus mostly on marketing.
Are there alternatives to vertical integration that the case doesn’t describe?
The entity could engage in licensing agreements that could prove profitable moving forward.
How would the potential changes in vertical integration affect NHLE’s exposure to opportunism?
It would in some ways maximize the ability of NHLE to cash in on its upside. At the same time, it would bring about more exposure to opportunism.
How would the potential changes in vertical integration affect NHLE’s flexibility?
The organization may become more flexible with more vertical integration. When done right, vertical integration makes an entity more responsive to change and to the needs of consumers. It does not have so many moving parts going in so many directions.
How well do the potential changes in vertical integration align with NHLE’s resources/capabilities, organizational structure, and strategic goals?
These potential changes align well with the capabilities, structure, and goals. NHLE wants to sell products, make money, and grow the game. It has the resources and brand to be effective in this new arrangement. Its structure would need to shrink, but this could be a small change for NHLE if things were done the right way.