The Marvel Way: Restoring a Blue Ocean Harvard Case Solution & Analysis

The Marvel Way: Restoring a Blue Ocean Case Study Solution

Business Stabilization:

In late 1990s, the period of bankruptcy was a terrible time for Marvel. The sales of comic books has been slipping with more than twenty percent every year and the deals of licensing had also dried up. This is due to the fact that licenses were mainly concerned with the contract that are long-term associated with the organization that may cease in its existence. The organization had badly impacted from financial issues and was running out of cash which resulted in the failure of making of payroll.

The focus of Marvel business was shifted towards the sale of toys and books of comics and licensing the exclusive rights of movies to various popular characters of Marvel’s comics. The management of Marvel had mentioned that movies that were successful might spur sales of goods that were licensed which drives the revenues of toys. In addition, the deals of early movies had provided capital which was badly needed and assisted in proving the economic viability of Marvel on the basis of comic books movies. (See Exhibit 1)

However, the deals did not appear to be one of the most favorable in terms of tactical and strategic purpose. Tactically, they significantly brought the capital that was needed in the up-front payment from. This increased the royalty of licensing by providing the organization with a free space to make a smart move towards more strategic direction. Thus, these deals proved to be the reason behind the popularity of Marvel characters at the Box office and skilled Marvel with the ways on how can movies be made so that Marvel would be able to produce its own films.

In the year 1999, the devastation of Marvel’s business of trading card i.e. Sky box and Fleer with a combined total amount of about $26 million i.e. with a loss of amount of about $410 million that would balance the earnings from taxation in future times.  The business of toy accounted for about bulk revenues of Marvel but unfortunately they were high risk low margin revenues. This resulted in the exit of Marvel from the production of toy and business sales, sale of exclusive rights in order to market the characters of Marvel for about five years.

In the year 2001, the organization has lost about $30 million in the business of toy on which the board agreed to license with one of the primary small businesses. Though, Marvel was then only responsible for the sale of products and sold off bout $%25 million in inventory which provided the organization with the cash influx. Besides, the stabilization of business moved in quick heal of the culture of the corporate by building a creative environment to thrive in.

Hiring of top-tier movie stars:

For a long period of time, the only thing comes to an author is none other than the director. Surely, the production of any movie is significantly a collaborative effort of a small army consisting of different people working in different sectors. But it is only the director who is responsible to set the tone and take particular decisions in the making of movie. This is to be done till the era of blockbuster franchises. Similarly, the actors the key players in making of a movie as without them the making of movie is not possible.

When directors of individual movies sets a rules of determination and demands that are needed to be installed by the movie production team. However, each director is allowed to do whatever they want to do by allowing for movies to be like Alfonso Cuaron's Harry Potter, the Prisoner of Azkaban, and The Empire Strikes Back featuring the maintenance of their own voice.(McMillan, 2016)

Likewise, it is not to say necessarily that, the cast of the movie chosen by the organization has troubled the position in the market but they have actually become the character they have performed in the movie. But it is different with Marvel, as it had to work with cheap resources to increase its organization’s economic growth thus the movies of Marvel has shared an aesthetic. Top rated actors can be hired in future but to be in the limited use its resources.

Break of the value/cost trade-off:

It is particularly believed that every organization operating in different industrial segments have different options to promote their growth. First, with the concept and mindset of customers that high cost are related to high quality products as to build trust over customers making sure about the product quality they provide to their consumers. Second, creation of reasonable valued product at lower cost which could be in approach to every individual who wants to enjoy that product.

According to case, in my opinion, Marvel has broken the value trade off as the consequences of blue ocean strategy are significantly not related with either low cost or high value products to grab the interest of customers towards their innovative products launch in the market. On the contrary, any organization can surely work with both i.e. low cost and high value products. It is absolutely okay to make a fine move in leading the organization ahead in international market.

Get the benefit of the right thing at the right time is one of the key effective strategic action that any organization can take to get the advantage from. Though, the breaking of cost trade-off has benefited Marvel in substantial ways such as the expansion of business in the regions it had never done before, entrance in different sides of the international market. It is evident by the resources that Marvel has used in the making of film scenes which surely did not take away the products value by maintaining the trust of customers.

There are some serious changes in the Marvel’s direction by the opening of its first studio for making of film using its comic’s characters with great effort to convey the same message as they wanted. Since then, Marvel has been struggling more and more in bringing improvement in its products and the targeted segments in the market................

 

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