Abstract
This assignment is to provide a strategic analysis of the football club Liverpool FC within the business environment of the English Premier League. Liverpool FC is historically seen as the most successful football club within the Premier League, having won 18 League titles, seven FA Cups and the European Cup five times (now: Champions League) (Liverpool FC, 2009). However, they have failed to win the League title since the season of 1989/90. In terms of revenue it is the fourth largest club of the Premier League (Deloitte, 2009).
The English Premier League is the highest league of the English football league system. It consists of 20 members and is connected to the next lower league through a system of promotions and relegations. Although all 20 members theoretically form part of the same league, there is a significant gap in terms of revenue as well as sportive success between the
four most successful clubs and the remaining 16 (further description given in Task A – Five
Forces – Competitive Rivalry) Thus, they have to be regarded as two different industries,with the clubs Manchester United, Arsenal FC, Chelsea FC and Liverpool FC forming an oligopolistic industry at the top and the remaining 16 clubs gathering in a balanced, competitive environment below. Due to this division, all industry related analyses in this
assignment are focused on the “Top Four Oligopoly”. These analyses, namely PESTEL, Porter's Five Forces Analysis, form the first part of this assignment together with an examination of the "Critical Success Factors". Part B focuses on the company Liverpool FC
itself, analyzing its resource capabilities as well as its sustainable competitive advantage. The report ends with a critical breakdown of the strategic direction of Liverpool FC in its industry.
