Reference no: EM133247080
MiniCase: Chasing Waves and Chasing Lives
Your Instagram notification fires off. There is a new video from your childhood friend Federico. You two grew up together and enjoyed sports. One summer, Federico had a new contraption he wanted you to try- a windsurfer. It was cool to try to master the thing (while mostly falling off). You liked the challenge, but it did not change your life.
Federico, on the other hand, was hooked, and he started traveling to different windsurfing destinations with his father. Upon returning, he would show you pictures and talk about new moves he was trying. As you were starting college, Federico told you he secured a sponsorship and was going to try to make it on the pro tour. As he chased his dream, you finished college and got a job with McKinsey's digital strategy practice.
As you were watching the new video, Federico DMs you: "What's up, old pal! How is the high-pressure world of consulting going? Do you have a few minutes to help your old beach bum friend? -)" You immediately replied that you were free, and two minutes later, the phone rang. Federico was in Sardinia, training for the upcoming season, even though the COVID-19 pandemic crisis led to most events being canceled. With budgets being squeezed, many of the pro windsurfers on tour were losing sponsors or seeing their already limited contracts being slashed. Windsurfing was not a major sport. For all but the very top sailors, a sponsorship meant technical equipment support but no money. Yet windsurfing was not a cheap sport. It required athletes to visit windy destinations to train and compete, bring bulky equipment (and pay airline excess baggage fees), and invest in repairs and new material when the inevitable wipeout damaged it.
Federico told you times were tough, and it was increasingly difficult to self-sustain while trying to be a professional athlete in such a demanding sport as windsurfing.
"Moreover" he confessed, "I also want to have a broader impact, motivating people to live their best life and to live sustainably. You should see how humans are damaging the environment. In the most beautiful beaches around the world, you will see microplastics.
And I am sure you know about the Great Pacific Garbage Patch." Federico's current
"revenue model" was based on advertising and branding. He had technical sponsors that supplied him the basics in terms of equipment. Beyond the sport, he was a brand ambassador and influencer for Christopher Ward watches, Seek Discomfort clothing, and Milo, a communication device specially geared for action sports. Federico had over 25,000 followers on Instagram, where he posted every day, and over 7,000 on Facebook. He also had a YouTube channel hosting his vlogs and action videos totaling tens of thousands of views. His followers and viewers came from all corners of the earth, from the United States, to Italy, to Japan. Yet with rough estimates of payout for YouTube videos at $3 to $5 per 1,000 views, it was difficult to sustain a pro athlete career on a pure ad strategy.
A typical influence marketing campaign could net a few hundred E dollars per post.?
Federico concluded, "Ultimately I want to be one of the top ten windsurfers on tour and inspire people as I do it. Since I get equipment from my technical sponsors, I estimate I need about $50,000 a year to have the resources to focus on training and really give it a shot. Do you have any brilliant ideas? Digital tech moves so quickly, maybe there are opportunities I could pursue that are better than what I've been doing so far." Seeing your old buddy inspiring people from the top of the podium would be really cool.
Perhaps the recent explosion of digital platforms and resources for "creators" could be the solution.
Discussion Questions
1. What do you think of Federico's current strategy? What do you see as the pros and cons of his current
"influencer" strategy?
2. ???Do you think Federico could develop a direct relationship with an audience? Is the windsurfing community big enough to help him reach his $50,000 a year target?
3. ???What specific suggestions do you have for Federico as he tries to generate enough revenue to continue chasing his dream?
Chapter 5 - Digital Transformation, Innovation, and Entrepreneurship
TEXTBOOK: Piccoli, G. and Pigni, F., Information Systems for Managers without Cases, Edition 5.0, Prospect Press, 2022.