The case study describes the challenges faced by Paul, 18 months before the commencement of the ticket sale of the London Olympic Games. He faced the following challenges that put him in a position to decide: 1) Expectation Management – Different stakeholders, including the International Olympic Committee (“IOC”), the Organizing Committee for the Olympic Games (“OCOG”), international and domestic commercial sponsors, participating sports federations, local government and London citizens, with different goals to achieve by the Olympic Games. Some of the expectations may be contradictory to each others, e.g. ticketing revenue vs. affordability that may require proper planning and communication. 2) Prioritization of Goals – As mentioned in the previous points, with various goals to be achieved which may be contradictory in nature, Paul has to make the judgment call of which goals to be prioritized. Assignment
1. What broad tradeoffs does Williamson face as he thinks about his ticket prices?
a) Affordability: Paul has to determine whether the total revenue or the attendance rate of the Olympic Games is more important. Higher price could likely be resulting in a more profitable event, which is favorable to the OCOG and the London city government. However, such decision will prevent the majority of general public from participating in this global event and lowering the attendance in most of the less popular events, contradicting to London’s bid as “Everybody’s Games”. b) Pricing differences between individual sports: Total revenue can definitely be enhanced by ...