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

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