International Expansion

Tough Mudder has and is continuing to expand into international markets.  They have events in Canada, Australia, and the U.K. in 2012.  In 2013-2014, TM is also planning to host events in Germany, the Netherlands, Sweden, Austria, Switzerland, France, Japan, New Zealand, and countries in South Africa.  Many of these countries don't yet have planned events, but if people are interested in competing there, they can submit their name and email address on the website ("pre-register") and then receive a discount once an event is scheduled.

They employ an international strategy -- there is little pressure for local adaptation (besides geographical factors of course) because Tough Mudder wants to keep the event and their reputation consistent.  In addition, I would assume fairly low pressures to lower costs, although price will vary slightly country to country.

I see two main motivations for Tough Mudder to expand into global markets:

1. The obvious one -- to increase the size of potential markets.  The U.S. represents less than 5% of the world population, which leaves a lot of untapped opportunity to involve people in other parts of the world.  There are definitely high amounts of demand and interest outside of the U.S.

2. In order to truly find the "World's Toughest Mudder," the company better have events worldwide!  Tough Mudder is seeking to become the preeminent brand in endurance sports.  Obtaining a global presence will enhance their brand, and increase awareness and popularity.

The main challenges Tough Mudder will encounter with global expansion will involve inevitable differences between foreign markets: culture, customs, language, income levels, and customer preferences.  These factors automatically bring some degree of local adaptation.

Corporate-Level Strategy

Tough Mudder is a single business organization. They are very new, as the company's first event was just held in May 2010. Additional 2010 events were held in Northern California and New Jersey, followed by 2011 events in Texas, Georgia, Pennsylvania, Vermont, Southern California, Colorado, Wisconsin, Northern California, Texas, Virginia, New Jersey, Indiana, and Florida. Tough Mudder is hosting 30-40 events in 2012 while expanding internationally to the UK and Australia.  In 2013, they are planning to expand into more cities in the U.S. and also New Zealand, Canada, South Africa, Japan, and more countries in Europe including Germany, the Netherlands, France, Switzerland, Austria, and Sweden.  

So as you can see, they are growing and expanding like crazy! However, they have not yet become a diversified business (entered new businesses).

Business-Level Strategy

Tough Mudder is the most expensive in the industry, yet the company employs a combination focus-differentiation strategy that ensures unique and valued event experiences among targeted markets.

• Best developed and recognizable brand name
• Everyone knows the value associated with finishing a Tough Mudder race
• Focus strategy is on one, distinct race (*toughest in the world) creates a consistent image.
• Are not targeting people just looking to complete a fun, mud run (Warrior Dash) or trying to create something for everyone (Spartan Races).  They only want the mentally and physically tough -- and it is a challenge people have to train for.
• Under Armour sponsorship really sets them apart and above from the rest of the industry.
•  Adds to the "coolness" factor and high performance.

• I also think the higher prices give customer perception of quality and reaffirms that Tough Mudder is the toughest and best.  People are glad to pay a premium for this.

Example:  Registration prices for Tough Mudder Twin Cities on May 19th

First Week Special	Until September 23	$80
Early Bird Discount	September 24 to October 24	$100
Tough Discount	October 25 to December 15	$110
Mudder Entry	December 16 to March 31	$125
Final Entry	April 1 to May 12	$150

Example:  Registration prices for a Spartan Race in Texas on May 19th

$60.00	November 19th (Early Bird)
$70.00	December 19th
$78.00	January 19th
$83.00	February 19th
$87.00	March 19th
$90.00	April 19th
$95.00	May 2nd
$100.00	May 16th (Registration Closes)