Thursday, April 11, 2013

Green Bay Packers: SWOT Analysis

Okay, so I figured I would post an entry that could appeal to all you business people as well as sports fans. This is my SWOT analysis of the Green Bay Packers. Enjoy!!!






The Green Bay Packers are one of the most winning, well respected, and most successful organizations in the National Football League. They won the first two Super Bowls ever, had the most well known coach in NFL history (Vince Lombardi), and has been fortunate enough to have some of the best quarterback play in recent history with Brett Favre and now, Aaron Rodgers.

Strengths



            The Green Bay Packers have several key strengths that allow the organization to continue to be successful. These include: the team is owned by the fans, the tradition of the organization, their ability to save money by building their team through the draft instead of signing free agents, and they have arguably the best quarterback in the league.
            Green Bay, currently, is the only team in the NFL owned by the fans. Every other team has an owner that oversees every line of business. Fortunately, for Green Bay the team is owned by the fans, while a General Manager does run their operations, the fans have a say in the direction the organization is heading. This is a huge advantage considering the fact that the team isn’t dominated by one voice. Instead, they are ran by a collective group of people that has the interest of the organization at heart. This allows them to stick to the traditions that have always made them a top organization in the league. The traditions are the organizations next strength. Green Bay plays all their home games at their legendary Lambeau Field also known as the “Artic Tundra.” As the season progresses, no other team in the NFL plays in colder or more harsh temperatures, and the team excels when playing in the cold weather. Many people are left to wonder, “How does this team attract fans in such poor weather conditions?” However, this is when the fans are at their strongest. They love the cold weather, and every single game is sold out, even if, the temperature drops below freezing. In fact, the wait list for season ticket holders exceeds that of most people’s lifespans! It is the hardest stadium in the NFL to obtain season tickets and also has the most die-hard fan base of any team in the NFL. Clearly, this is a huge advantage for any organization. Likewise, the tradition of Green Bay has led to them retaining this loyal fan-base. No other professional organization has tickets sell-out as quickly as Green Bay. The city is just over 100,000, which makes it one of the smallest markets in all of professional sports. However, nationwide, it boasts one of the largest fan bases of any professional sports team. This displays the loyalty and the tradition the Green Bay Packers have at their disposal. Next, Green Bay has one of the best strategies in place to maintain good finances, yet remain competitive: they build their team through the draft. Many outsiders do not understand the significance of this philosophy, but it allows them to remain below the salary cap, year in, and year out. Due to this strategy, the Packers never overpay for their players. Instead they draft them, and pay a league minimum for quality starters at nearly every position. What exactly does this mean? Well, most teams pick-up free agents, in which they pay millions of dollars because they bid against other teams to acquire them. However, the Packers do not participate in this. Most teams heavily overpay for free agents, which places them near or well above the salary cap. Instead, the Packers make good choices in the draft and forego the process of signing expensive free agents, allowing them to continue to be successful as a championship contender. However, the organization does spend money when they deem necessary, most importantly when one of the players in the organization performs well since being acquired by the organization. In fact, since the NFL is a quarterback driven league, they invest heavily in their quarterback, who is potentially the best in the business. Just like a good business would pay their top executives well, the Packers treat their quarterback, Aaron Rodgers in the same respect. In fact, a current deal is in place with him, to make him the highest paid player ever in NFL history. Considering the fact that he is the best quarterback in the league, and the fact that Green Bay can afford to pay him top dollar (it really helps now, not paying too much for other players) Green Bay is able to reward their top talent with huge dollar amounts, yet still remain below the salary cap. This remains to be Green Bay’s biggest competitive advantage. They are smart at deciding which areas they dedicate money to, they sign players to big contracts that deserve them, spending money keeping them instead of on free agents, and build depth through smart and concise draft picks. Many organizations are trying to implement this model of success, yet very few are able to execute to the extent Green Bay does.


Weaknesses



            Although the Green Bay Packers have been extremely successful, several weaknesses still exist within their organization. For one, since they are team owned, they must raise funding publicly, they build their team through the draft, causing them to lose key free-agents that could help their team, and their defense is subpar.
            Since Green Bay is publicly funded, they rely on fan support to do anything within the organization. This can be a major weakness, especially considering the fact that they wanted to re-vamp their stadium in the past. In fact, they had to petition to get this done and it took a long time and large donations from the public to do so. Additionally, they cannot act quickly with decisions. It has to be done through a long chain of ownership, which can take a long time. Additionally, although building through the draft is a strength and an opportunity, it is also a weakness. If they draft terribly, it can influence the organization for years in the future. Furthermore, since they do not pick-up free agents, they miss out on players that could easily fill the needs and holes in their roster that they desperately need. This can cause them, like in present years, to have a weak defense, causing them to exit the playoffs early. Likewise, their defense has been sub-par. This is not due to poor draft classes, instead it is due to an abnormal amount of injuries. In fact, they have potential to have a good defense, however, they continue to get injured, which causes them to have lackluster years on the defensive side of the ball.

Opportunities


            The Packers have several key opportunities that are available to them in the future. Some of these opportunities include: their young roster, their available salary cap for the present year, and their ability to draft.
            The Green Bay roster is one of the youngest in the league. Their defense features some of the youngest players in the game. If they stay healthy, their Defense could be one of the best in the game. In fact, Nick Perry and Jerrel Worthy from last years draft class were some of the best college players in the country. However, their seasons were cut short due to injury. Additionally, Green Bay has several young players on the offensive side of the ball. Their wide receiving core features some of the youngest and talented wide receivers in the game. Likewise, through the draft, they were able to build a young offensive line to protect their biggest asset, Aaron Rodgers. Since Green Bay is such a young team, they are able to stay well below their salary cap. This allows them to give bonuses to players that have performed well within their organization. Furthermore, staying below the cap is extremely important considering the fact that organizations get taxed and fined if they are above it. Another crucial factor that exists for an organization staying below the cap is the ability to sign a free agent in case a player gets injured. This is crucial considering the violent nature of the game as well as the frequency of injuries. Lastly, one of Green Bay’s biggest opportunities is their ability to draft. During the draft, Green Bay constantly makes moves to pick players that are high on their draft board. In doing so, Green Bay is able to sign high quality talent and build depth to their roster. In recent drafts, Green Bay has been one of the most effective organizations at picking the right personnel to make them a top team in the NFL

Threats


            Considering the competitiveness of professional sports, it is extremely difficult to remain consistently at the top of any league, let alone the NFL. Likewise, many threats exist to the Green Bay organization. Their biggest threats exist from other teams in the league as well as in their own division. Additionally, one of the biggest threats any professional sports organizations is economics, and the Packers are not immune to this threat.  The first threat to Green Bay is simply other teams in the NFL. Every organization strives to improve every year. Many teams across the league added depth to their roster during the free agency period. Some notable teams include, the Denver Broncos, Seattle Seahawks, and San Francisco 49ers. The Broncos began by adding one of the best wide receivers over the last five years in Wes Welker. He has been among the most productive at his position that the league has seen in quite some time. Now, he is with Peyton Manning, who is a hall-of-fame caliber player. Fortunately for Green Bay, they will not meet this team until the Super Bowl. However, Seattle and San Francisco, are both in the same conference as Green Bay. They both added some of the top talent in the league to their roster and are Green Bay’s biggest threats. These threats are compounded when you consider the fact that both of those teams made it farther than Green Bay in the playoffs. It will be a test and a struggle for the Pack to beat these teams that stand in the way of them returning to the Super Bowl. Most likely, the Packers greatest threat is economics. When teams are successful, their players are also successful, which allows them to demand more money. NFL teams always have to understand this and know who to keep their finances under control or else, the entire organization could crumble in just a single season. Since the Packers are such a successful organization, many of their players are valued highly around the league. This makes them worth more money and harder to maintain. Since they cannot always afford to keep these players, their draft is even more important to them to ensure that the organization can maintain talent and depth on their roster. Finances are not only a threat to the Packers, but also to the entire National Football League.  

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