An Industry Organizational Study Of Chinese Professional Basketball

Making an analysis of domestic professional basketball’s market structure, market behavior, and market performance, studying the elements which contribute to the success of NBA, suggesting the way how CBA improve its performance, we draw the conclusion as followings:Professional Basketball Industry is an alliance of organizations which produce and provide basketball competition, for the purpose of making profit through market exchange.From a macroscopic level, CBA organizational institution is the only provider, so the market structure is complete monopoly. The entrance barriers of high price and government approval are the underlying reasons which lead to this market structure.From a microscopic level, the market structure of our professional basketball industry is the type of IV monopolizing pattern. The reasons include the scale of clubs, the capacity of market, slight differentiation of products and higher entrance barrier.The market competitive behavior:the competition of price influenced the gate revenues in local markets, and impacted the choice of industry development strategy. The overall promotion and individual promotion coexisted, however each club paid more attention to individual promotion. Professional basketball clubs vertically merged with some amateur sports schools.The market coordinative behavior:CBA organizational institution work with professional promotion company to integrate CBA resource. CBA organizational institution coordinated all clubs to select foreign players and transfer domestic players and set the salary cap for the different level players. The economic performance showed the following results. The main part of consumers reached a certain scale, reflecting a stable situation. A majority of club lost money and some of them are in a worse situation. The value of CBA is recognized by the market and the promotional price of CBA witnessed an increase.The social performance showed the following results. The brand of CBA has been strongly built. The improvement of CBA competition caused the improvement of competitive ability of national team players. The increase value of CBA market contributed to the increase value of Men’s national team.Chinese professional basketball should take the following advice to improve its performance. Having a correct understanding of the function of basketball center administration and establishing a Chinese characteristic CBA league. Optimizing the make-up of property right of the professional basketball club. Developing domestic stars to win more supports from fans.