Entrepreneur Biography - Le Bron James PDF

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Entrepreneur Biography: LeBron James By: Mustafa Khan 500777764

Submitted To Professor Robert Greene Ted Rogers School of Management In partial fulfillment for the requirements for CENT526 – Entrepreneurial Behaviour & Strategy 19/02/2019 Ryerson University

Introduction One of the most recognizable faces, one of the most scrutinized athletes, as well as one of the world’s most lucrative entrepreneurs, LeBron James checks all the categories. He has created a completely new mold in how athletes carry themselves both on and off the court – as a result, LeBron has become one of the top earning athletes in the world. One way in which LeBron James has separated himself through his ingenious competitive positioning (Bygrave, Wise, Zacharakis, 2015, p. 449) along with his savvy entrepreneurial mindset and willingness to step out of his comfort zone and take risks.

Background – Pathway to Greatness

LeBron James’ pathway to greatness is one that does not lack its fair share of tribulation, which makes his story of success even more inspirational. LeBron was born to 16-year old Gloria James in Akron, Ohio – his father had no involvement at all in their life and Gloria was left to raise LeBron by herself. His early life was mired with struggles as they constantly moved homes and were situated in poverty-stricken neighbourhoods. Without much stability in his life, LeBron was able to find some security within the sport of basketball and began playing in the fifth grade. His surreal aptitude for the sport combined with his outlandish natural physical traits led to him quickly becoming a dominant force on the court. His performance throughout high school is where James rose to prominence, quickly becoming one of the most talked about athletes in the United States due to his unparalleled dominance of the sport. His high school games became nationally televised and he appeared on many magazine covers which only prognosticated the inevitable pathway to the NBA for the most popular high school basketball player of all time. His dealings in entrepreneurship (Bygrave, Wise, Zacharakis, 2015, p. 52) and business were also foreshadowed as he had signed a shoe-contract with Nike right as he entered into the NBA. LeBron did not fail to meet any of the gargantuan expectations that were placed upon his shoulders as his NBA career so far has proven to be one of the most storied and greatest of all time. If there are any stories that provide credence to the traits theory (Bygrave, Wise,

Zacharakis, 2015, p. 573), LeBron James’ story is at the forefront. He demonstrated great leadership (Bygrave, Wise, Zacharakis, 2015, p. 573) and a high internal locust of control (Bygrave, Wise, Zacaharakis, 2015, p. 573) both with dealing with the struggles of his early-life situation, but also on the court and off the court through his entrepreneurship.

Entrepreneurship

LeBron James’ entrepreneur portfolio is extremely vast, and he has undertaken many business ventures that have led to the creation of an empire. Two in particular that are notable and will be discussed further are his product line with Nike and his media company, UNINTERRUPTED. His success in entrepreneurship can be attributed to his strong business acumen (Bygrave, Wise, Zacharakis, 2015, p. 238) through uniquely utilizing his athletic prowess and success on the court as differentiators (Bygrave, Wise, Zacharakis, 2015, p. 217) that would translate off the court as well. It is a very unique case as James has focused on transforming himself as an individual, into a brand (Bygrave, Wise, Zacharakis, 2015, p.189) - a trend that has become prevalent for athletes of today and in large part is due to James’ endeavors. By being the best basketball player in the world, LeBron was able to develop a brand image (Bygrave, Wise, Zacharakis, 2015, p. 189) synonymous with success and greatness. Coupled with his successful business endeavors, those traits are even further reinforced. James also has a positioning statement of “Strive for Greatness” which strengthens his reputation of success. His brand awareness (Bygrave, Wise, Zacharakis, 2015, p. 189) is extremely high due to his aforementioned athletic success, outspoken stances on various social issues, and his various business ventures.

To begin, as mentioned previously, Nike had signed James to a $90 million seven-year contract as soon as he entered into the NBA from high school. However, in 2016, Nike signed James to a lifetime deal that was reportedly worth over $1 billion, an unprecedented amount for any athlete. Compared to other athletes that are also signed with Nike, the company has given James a very high level of autonomy with operations. Essentially, James has his own product line (Bygrave, Wise, Zacharakis, 2015, p. 176) and is able to give substantial direction in the design and marketing of products. With his product line, James has made it clear that one of his imperatives

(Bygrave, Wise, Zacharakis, 2015, p. 217) is to have a positive impact outside of basketball and be a trailblazer within his craft. Throughout the basketball season, James has a campaign called “#LeBronWatch” where he wears a myriad of different LeBron-line sneakers every game, each representing a specific message. One example are the LeBron 15’s Equality, which were a direct representation of LeBron’s outspoken mantra when it comes to social issues. The sneakers were worn at a game in Washington, DC and were released around the time James had criticized US President Donald Trump for his divisive behaviour. The shoes are now in the Smithsonian museum and display the enormous impact James has had both on and off the court. According to Forbes (2017), James had the bestselling NBA signature shoe in the world, he was ranked ahead of popular basketball figures such as Kyrie Irving, Kevin Durant, and even the legendary Michael Jordan. Nike has always been at the forefront of innovation (Bygrave, Wise, Zacharakis, 2015, p. 260) with their brand as well as in comparison to their direct competition (Bygrave, Wise, Zacharakis, 2015, p. 290) such as adidas and Under Armour. Their marketing (Bygrave, Wise, Zacharakis, 2015, p. 168) has been nothing short of amazing as well - devising unique marketing plans (Bygrave, Wise, Zacharakis, 2015, p. 292) to improve their positioning (Bygrave, Wise, Zacharakis, 2015, p. 173). A prime example is with Michael Jordan, who is LeBron James’ biggest role model (Bygrave, Wise, Zacharakis, 2015, p. 57). Nike focused much of their marketing and development strategies (Bygrave, Wise, Zacharakis, 2015, p. 298) on building the persona of an individual athlete, in this case, Michael Jordan. This proved to be successful with the formation of the Nike subsidiary, Jordan Brand, which is still one of the most popular shoe brands in the world despite Jordan retiring in 2003. Nike followed this trend by focusing on the career of LeBron James, whom many consider to be the successor to Michael Jordan in both basketball and influence. So far, their decision has been extremely fruitful as James’ signature sneaker line accounted for $300 million in sales in 2014 (Foundr, 2012). Despite the star-studded array of athletes Nike endorses, James’ shines the brightest through his ingenious positioning of his brand as well as his innovative marketing campaigns.

Previously, LeBron James’ forthright stance on social issues was mentioned and it serves as one of the most amazing things about him, especially in an entrepreneurial context. Very few athletes of LeBron’s eminence have even dared to speak about issues outside of their profession, but LeBron has never been shy of that spotlight. As a result, in 2014 in partnership with HBO,

LeBron founded UNINTERRUPTED – a multimedia platform designed to produce documentaries, web series, and podcasts that provided a deeper glance into the lives of popular athletes. The platform is a hybrid venture (Bygrave, Wise, Zacharakis, 2015, p. 598) as it has both social and economic goals – it would also classify as both a social consequence venture (Bygrave, Wise, Zacharakis, 2015, p. 594) and a social purpose venture (Bygrave, Wise, Zacharakis, 2015, p. 594) as it seeks to speak about social issues but also receive some sort of economic return. The value proposition (Bygrave, Wise, Zacharakis, 2015, p. 220) of UNINTERRUPTED is that it offers fans an uncut, unedited version of what is typically glossed over by traditional media outlets. There is a distinct emphasis upon the words, emotions, and moments of these athletes, which are often unfortunately otherwise overlooked. James in an interview with Re/code in June 2015 said “We do the normal media bunch, but sometimes they only give you what they want people to hear. I talked to Maverick (business partner), I told him, I want to give [my fans] the uncut, unedited version right then and there of what my thoughts are.” This strategy (Bygrave, Wise, Zacharakis, 2015, p. 298) has been extremely successful, especially with reaching the customers (Bygrave, Wise, Zacharakis, 2015, p. 102) as it has garnered over 250,000 subscribers on YouTube, with many videos well over 500,000 views and also over 400,000 followers on Twitter. The company also releases content directly through its website which gives it multiple channels of distribution (Bygrave, Wise, Zacharakis, 2015, p. 180). One of the company’s most popular series is called “The Shop” where LeBron and his business partner Maverick Carter discuss various topics such as music, sports, social issues, business, and pop culture with other renown celebrities and athletes. Some notable guests that have attended the show include Ice Cube, Jimmy Kimmel, Drake, Chris Bosh, and Odell Beckham Jr. The show attempts to recreate the lighthearted, authentic, and uninterrupted discussion and banter that is innate to a barbershop while still maintaining the quality (Bygrave, Wise, Zacharakis, 2015, p. 173) of an HBO series. Regarding the show James has said that “ ‘The Shop’ is exactly why we created UNINTERRUPTED. Anyone who has been in a real barbershop, like the ones where I grew up, knows why this show can be so incredible.” UNINTERRUPTED is unlike any of its kind, it is a truly unique platform and it is apparent why athletes have flocked to it. It provides them with an unadulterated voice where they can demonstrate their worth – these professionals have had many experiences and have much more to offer than just their athletic talents.

Conclusion

There are several key takeaways from LeBron James’ athletic and entrepreneurial career that would be beneficial to examine. The first is, be passionate about what you do. It is very apparent that LeBron has a great love for the sport of basketball – he has been playing for over 25 years and it was his savior from a life of hardship and tribulation. It is important to consider what passion can propel one to do; passion pushes boundaries and differentiates between those who are good and those who are great. LeBron James is undoubtedly great, but his greatness was fueled by that passion for basketball. His craft has undergone countless hours and days of refinement, and it continues to do so as there is always room for improvement. LeBron seamlessly leveraged his immaculate talent for basketball to lead into a successful entrepreneurship career. Many of the lessons he learned from the sport translated over to the world of business as well – values such as, gratitude, hard work, perseverance, and risk-taking were all instrumental in James’ success. This leads into another important lesson, the importance of not fearing failure. On the court, LeBron has faced many failures on the biggest of stages, but that has never dissuaded him from his pursuit of greatness. There is always a lesson to be found in failure, and James has been very successful in rebounding from those failures by not letting them inhibit him from achieving his goals. A prime example of this is within his entrepreneurial career – James has undertaken many endeavors, whether it be acting, investing, creating his own company’s, or designing clothing. He has never let those on-court failures cloud any of his offcourt opportunities (Bygrave, Wise, Zacharakis, 2015, p. 61). He has become a master of compartmentalizing and moving forward, which are necessary traits for success. Furthermore, James has personified what it means to be a social entrepreneur (Bygrave, Wise, Zacharakis, 2015, p. 590). Social entrepreneurship may not always seem desirable as it does not have a complete focus upon profit, but James has demonstrated its importance as well as its potential credence to a brand. His staunch and unwavering stance on various social issues have caused him

to garner respect from even his biggest critics, which only supplements his own brand image and business success. With an athlete that has more in mind than just the dribbling of a basketball, his entrepreneurial success continues to reflect his on-court success. James has epitomized greatness and success on the court, but perhaps the most unexpected revelation of his career is how he manifested such amazing success off the court as well. LeBron James is truly more than an athlete.

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