The Niche Portfolio Strategy to Global Expansion: The Influence of Market Resources on Demand for Formula One Racing

Journal of Global Marketing, 27(4), 247-261.

33 Pages Posted: 6 Apr 2014 Last revised: 23 Aug 2014

See all articles by Jonathan A. Jensen

Jonathan A. Jensen

University of North Carolina at Chapel Hill

Joe Cobbs

Northern Kentucky University - College of Business

Mark Groza

Northern Illinois University

Date Written: 2014

Abstract

International products can achieve mass adoption in some countries, while languishing outside the mainstream in other countries. Theoretically, global organisations can manage market entry and divergent demand by practicing a niche portfolio strategy that requires marketers to appropriately prioritize and cultivate key resources in underdeveloped niches while maintaining dominant status in traditional markets. We utilize the international context of Formula One Racing (F1) to examine how market resources influence demand for the sport in 19 different geographically-defined niches across four continents. Hierarchical regression analysis demonstrates positive incremental demand effects for participant, spectator, and sponsor-based resources, while media-based resources were nonsignificant.

Keywords: Formula One, F1, media, advertising, sports marketing, motorsports, niche portfolio, international sports, global marketing

Suggested Citation

Jensen, Jonathan and Cobbs, Joe and Groza, Mark, The Niche Portfolio Strategy to Global Expansion: The Influence of Market Resources on Demand for Formula One Racing (2014). Journal of Global Marketing, 27(4), 247-261.. Available at SSRN: https://ssrn.com/abstract=2420571

Jonathan Jensen

University of North Carolina at Chapel Hill ( email )

308 Woollen
Chapel Hill, NC 27599
United States

Joe Cobbs (Contact Author)

Northern Kentucky University - College of Business ( email )

Highland Heights, KY 41099
United States

Mark Groza

Northern Illinois University ( email )

1425 W. Lincoln Hwy
Dekalb, IL 60115-2828
United States

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