Human Capital

ATTRACT

• High company growth and increased excitement about the company
• High position standards/requirements (increasing each month)
• However, they look further than knowledge, ability, and skill and focus on personality, attitudes, values, beliefs, and interests.
• Example application questions:
• You know that book (and website) about 6 word memoirs?  Well, now is your chance to write one.  We want to hear your six word memoir.
• Tell us what you do for fun.  This can be having a drink with your friends or playing chess --we don't care what you do, we just want to know what you do outside the office.
• Working at Tough Mudder is more than a job and is even more than a career -- it's a lifestyle.  Tell us why you want your work to become a lifestyle and the benefit of achieving such a thing.
• Everyone starts with an internship.  This gives Tough Mudder a trial period to see if new hires fit in -- they have time to decide whether to make a permanent offer.
• Have a fun and attractive corporate culture.  From their website:

Tough Mudder is not the average work place, and we don’t employ average people.


You’ll learn more in 2 months at Tough Mudder than you did in 2 years at your old job and will have real responsibilities from day one. Forget about getting coffee or making copies – you’ll be negotiating with vendors, brainstorming new marketing strategies, and traveling to planning meetings across the country. You’ll work alongside an incredibly talented group of 35 all-stars with backgrounds in everything from banking, trading, law, tech, construction, events, sports business and more.


Most importantly, you’ll be working in a place where we take our work seriously, but not ourselves. There’s a sense of humor about TMHQ that you won’t find at other companies and we’ve been profiled by the NY Times as a place that “exudes Gen Y cool”. Our offices are in DUMBO Brooklyn – the home of New York’s creative industry where we’re surrounded by start-ups, studios, and countless other innovative young companies.

DEVELOP

• Tough Mudder University
• Harvard Business Review case studies
• Mock HBS classes
• Reading program
• Employees are not limited to their position responsibilities.
• "At Tough Mudder, you'll learn everything from how to construct a quarter pipe to the in-and-outs of business development, brand management, and event production."
• Tough Mudder Ventures
• Start-up funding initiative that provides seed financing, office space, mentorship, and more to former Tough Mudder employees who launch their own businesses.
• They believe that people are their greatest competitive advantage and want to enable them to bring their visions to reality.

RETAIN

• Tough Mudder believes that hard work deserves to be rewarded.  Employee benefits:
• Up to five weeks of vacation per year plus official holidays
• Competitive health insurance benefits
• Free food and drink in the office
• Free gym membership "as long as you use it!"
• 40% off Under Armour gear
• iPad for finishing internship
• Attend regular company retreats in the Catskills
• Profit sharing plan
• Employees are helping to build an exciting endurance sports brand.  Belief and passion about mission.

Resource-based View of Tough Mudder

The RBV approach combines the internal company analysis with the external analysis of the industry and its competitive environment.  It identifies competitive advantages by analyzing each resource and capability and asking:

• Is it valuable?
• Is it rare?
• Is it difficult to imitate?
• Is it difficult to substitute?

Here is what I came up with for Tough Mudder:

Resource/ Capability	Valuable?	Rare?	Difficult to Imitate?	Difficult to substitute?	Implication for competitiveness
Tangible Resource
Target marketing system	YES	YES	NO	NO	Competitive parity
Employee development and rewards (TM University & benefits)	YES	YES	NO	NO	Temporary competitive advantage
Financial Resources – cash (high growth)	YES	YES/ NO	NO	NO	Competitive parity
Sponsors	YES	YES	YES	NO	Temporary competitive advantage
Intangible Resource
Brand name and reputation	YES	YES	YES	YES	Competitive advantage
Innovation and creativity	YES	YES	NO	NO	Temporary competitive advantage
Employee capabilities and skills	YES	NO	NO	NO	Competitive parity
Organizational Capabilities
Excellent customer service	YES	NO	NO	NO	Competitive parity
Innovative and tough course and obstacle development	YES	YES	NO	NO	Temporary competitive advantage
Ability to hire, motivate, and retain human capital	YES	YES /NO	NO	YES/NO	Competitive parity

HUGE strategic move: Tough Mudder signs Under Armour

On December 5, 2011, Tough Mudder signed Under Armour and brought in $25 million. Under Armour will also make branded gear for purchase and even says its training specialists will help people train for the events.  Matt Mirchin, Under Armour's head of Global Sports Marketing, said he learned of Tough Mudder when Under Armour employees started talking about it in the office.

"This is not only a community, it's a movement," Mirchin said. "We're a growing brand, they're a growing brand, it's just the right thing to do for us."

"In many ways, it looks like were already sponsored by them," Dean said. "An Under Armour shirt is something that you'll see on 70-80 percent of participants. It dries quickly, it's good when it's wet."

Click here to read the full article and watch the video interview:  
http://www.cnbc.com/id/45554832

Tough Mudder on the Under Armour website:  
http://www.underarmour.com/shop/us/en/tough-mudder

S.W.O.T Analysis

Internal

STRENGTHS:  

• Every race is different - climate, terrain, geographies, evolving obstacles
• Tough Mudder dominates the niche market of obstacle races
• Human Resources
• Tough Mudder University -- HBR case studies and book club (dedication to professional development)
• Every employee starts as a 6-10 week intern -- only hire from within
• Great employee benefits -- pride themselves for work being a lifestyle
• 21,000+ applications for employment within the last year
• Location: DUMBO Brooklyn -- home to New York's creative industry
• Surrounded by start-ups, studios, and tons of other innovative young companies
• Strong corporate culture
• Profiled by the NY Times as a place that "exudes Gen Y cool"
• Excellent word of mouth advertising -- Tough Mudder is a marketing company that puts on events
• *Facebook
• Target Internet ads
• Tattoos
• Memories
• Training programs
• Tough Mudder Post-Party

_____________________________________________________________________________

WEAKNESSES:

• Event participant logistics
• At a sold out event, waves of 500 people go every 15 minutes -- congestion and back-ups at obstacles
• ....
• ....

____________________________________________________________________________

External

OPPORTUNITIES:

• International markets
• Clustering events/cluster markets
• Membership?
• Further developing training programs -- the training programs are becoming a huge social component and a key way to grow
• Focus/development in college markets
• College student only events -- student I.D. discounted
• End of the year celebrations with friends and classmates
• Training programs could be implemented into athletic/extracurricular class offerings

____________________________________________________________________________

THREATS:

• Obstacle racing could just be a fad and people return to the Ironman, triathlons, and traditional marathons
• World's Toughest Mudder Competition does not compete with Ironman
• Three-mile mud runs such as Warrior Dash
• http://warriordash.com/
• HUGE competitor: Spartan
• http://www.spartanrace.com/
• They offer something for everyone: Spartan Sprint, Super Spartan, Spartan Beast, and Death Race
• Threat of new entrants = low
• Tough Mudder, Warrior Dash, and Spartan are becoming well-established and max-out the obstacle racing market

 ____________________________________________________________________________

Who is Tough Mudder?

Tough Mudder events are hardcore 10-12 mile obstacle courses designed by British Special Forces to test your all around strength, stamina, mental grit, and camaraderie. As the leading company in the booming obstacle course industry, Tough Mudder has already challenged over half a million inspiring participants worldwide and raised more than $2 million dollars for the Wounded Warrior Project. But Tough Mudder is more than an event, it’s a way of thinking. By running a Tough Mudder challenge, you’ll unlock a true sense of accomplishment, have a great time, and discover a camaraderie with your fellow participants that’s experienced all too rarely these days. 

FACT #1 – Marathon running is boring.

FACT #2 – Mudders do not take themselves too seriously.

FACT #3 – You cannot complete a Tough Mudder course alone.

Will Dean, founder and CEO, is a former counter-terrorism agent for the British Government and launched the company in 2009 soon after earning his MBA at Harvard.  He was inspired to start Tough Mudder out of frustration with unimaginative and repetitive marathons, triathlons, mud runs, and other adventure races.


Mission: Tough Mudder's long-term mission is shift the entire focus of endurance sports away from personal performance and boring repetitive exercises to varied challenges, teamwork, camaraderie, and genuine fun. By the end of 2012, they aim to replace Ironman as the preeminent brand in endurance sports.


In the past year, Tough Mudder has grown from $2.2 million in annual revenue to $22.2 million...that's ten-fold growth!