After the Glory Days: Exploring the Continuing Challenges and Declining Performance of TSM

Ke Dong

doi:10.62051/syyrc750

Authors

Ke Dong

DOI:

https://doi.org/10.62051/syyrc750

Keywords:

eSports; TSM; strategic realignment; FTX bankruptcy; market performance.

Abstract

This study provides an in-depth examination of the key challenges faced by TSM, a North American eSports organization, and the reasons for its declining competitiveness and market performance since 2022. It does so through a multidimensional analysis that includes organizational and managerial changes, strategic direction and decision-making adjustments, technology investments and innovation activities, and the specific impact of changes in the external market and competitive environment on TSM's business strategy and performance. It is found that the departure of key personnel, failures in tactical and strategic alignment, and the FTX bankruptcy all had a significant impact on TSM. Through case studies, the article reveals the underlying reasons for TSM's poor competitiveness and business performance and provides strategic recommendations on how to maintain competitiveness in the current competitive environment of the eSports market. In addition, the study provides practical recommendations for TSM to undertake strategic reorganization and risk management strategies to cope with possible future market volatility and competitive challenges.

Downloads

Download data is not yet available.

References

Esports Earnings. Team SoloMid - Esports Team Summary. 2024. Retrieved on April 1, 2024. Retrieved from: https://www.esportsearnings.com/teams/196-team-solomid.

Forbes. The most Valuable Esports companies 2022. September 15, 2022. Retrieved on March 29, 2024. Retrieved from: https://www.forbes.com/sites/brettknight/2022/05/06/the-most-valuable-esports-companies-2022/?sh=23737732599f.

Esportsinsider. TSM sells LCS franchise to Shopify Rebellion - esports insider. 20 September, 2023. Retrieved on April 3, 2024. Retrieved from: https://esportsinsider.com/2023/09/tsm-sells-lcs-franchise-shopify-rebellion.

SiegeGG. Report: TSM to Exit Rainbow Six siege. February 9, 2023. Retrieved on April 03, 2024. Retrieved from: https://siege.gg/news/report-tsm-to-exit-rainbow-six-siege.

Investopedia. What was FTX? an overview of the Exchange. 2024. Retrieved on April 03, 2024. Retrieved from: https://www.investopedia.com/ftx-exchange-5200842.

ESPORTS.GG. TSM finally announce their VALORANT roster for 2022. January 20, 2022. Retrieved on April 7, 2024. Retrieved from: https://esports.gg/news/valorant/tsm-finally-announce-their-valorant-roster-for-2022-rebuild-complete/.

ESPORTS.GG. TSM FTX becomes the first team eliminated from ti11. October 18, 2022. Retrieved on April 13, 2024. Retrieved from: https://esports.gg/news/dota-2/tsm-ftx-becomes-the-first-team-eliminated-from-ti11/.

NerdWallet. FTX crash: Timeline, fallout and what investors should know. January 20, 2023. Retrieved on April 07, 2024. Retrieved from: https://www.nerdwallet.com/article/investing/ftx-crash.

Cointelegraph. FTX bankruptcy lawyer: Debtors face “assault by Twitter” stemming from Sam Bankman-Fried. January 20, 2023. Retrieved on April 7, 2024. Retrieved from: https://cointelegraph.com/news/ftx-bankruptcy-lawyer-debtors-face-assault-by-twitter-stemming-from-sam-bankman-fried.

U.S Securities and Exchange Commission. SEC Charges Samuel Bankman-Fried with Defrauding Investors in Crypto Asset Trading Platform FTX. December 13, 2022. Retrieved on April 11, 2024. Retrieved from: https://www.sec.gov/news/press-release/2022-219.

Ultiasia. Financial crisis forces TSM to freeze nearly half of its divisions. April 4, 2023. Retrieved on April 12, 2024. Retrieved from: https://www.ulti.asia/featured/financial-crisis-forces-tsm-to-freeze-its-divisions/.

Rocky Year. TSM suspends $210 million naming rights deal after FTX woes. November 11, 2022. Retrieved on April 11, 2024. Retrieved from: https://www.washingtonpost.com/video-games/esports/2022/11/16/tsm-ftx-naming-deal-suspended/.

Esportsinsider. TSM claims stability and profitability in statement after name sponsor FTX files for bankruptcy - esports insider. November 14, 2022. Retrieved on April 13, 2024. Retrieved from: https://esportsinsider.com/2022/11/tsm-claims-stability-and-profitability-in-statement-after-name-sponsor-ftx-files-for-bankruptcy.