Tulsi Studios Limited Harvard Case Solution & Analysis

PROBLEM STATEMENT, OPPORTUNITY AND OBJECTIVES

It was late February 2012 when Ajiit Ahmad, the (CEO) of Tulsi Studios Limited (Tulsi), evaluated his association's potential development of good fortunes. Tulsi is situated in Bangalore, India and utilized in excess of 250 individuals with abilities in specialized and workstation energized substance. Its gifted group of craftsmen ceaselessly conveyed excellent work with a specific focus on 3-D activity. The organization was striving to draw in after creation work from Hollywood studios. The quality recommendation was basic; Tulsi could give amazing work at a lower cost than U.S. equivalents. With a gifted work pool and state-of-the-symbolization generation studios, Ahmad accepted his firm was decently situated to support Dream Woks Animation (Dream Works) or Pixar Studios, which were both growing universally. Both bragged imposing records, but which company will bring synergies with Tulsi to bring it on the map, which company had the strategy giving it the edge over the other? A comparison of the companies will lead to the identification of each strategy; the company with the most successful strategy will be the company that should be approached for Ahmad.

CURRENT SITUATION

The movie industry that has provided entertainment to the people for over 100 years; today in 2009 has reached a market capitalization of $U.S. 109 billion, where the average cost of making a movie including production and marketing stands around $U.S. 100 million but even with all the history and the current success, it is a very risky market to work in whereas the market share fluctuated heavily year to year based on the number of movies released and the popularity that they achieve there has a 60% risk of failure on each movie produced; which gives the studios something to think about.

The studios create portfolios to diversify their investment by reducing the risk, but the fact is that making an animation movie is much more expensive than making a regular movie. For example, Pixar’s Wall-E had a production budget of $180 million, whereas New Line Cinema’s The Notebook costs $30 million; the most popular approach to counter this is to reduce the cost without compromising the quality by making the use of third world countries.

In Hollywood, discovering ability has got more troublesome and immoderate, leaving numerous studios to outsource to the new generation of India. For instance, in 2008, Walt Disney Studios joined forces with Mumbai -based Prana Studios to deliver its hit CGI motion picture Tinker Bell. With 40 for every penny lower work costs than in the United States, and a substantial pool of English-talking innovative along with workstation gifted ability, the changed remote immediate financing arrangements of India have made it an exceptionally aggressive commercial center.

This strengthens the argument of Ahmad, which is the right time to enter into a partnership with a big name.

ANALYSIS

Detailed analyses of the company’s history, mission and area of expertise will provide a clear indication of each company’s preferred strategy whereas the amount of success achieved by each company will show which strategy has been the most successful.

DREAM WORKS ANIMATIONS

MISSION: (TAKEN FROM ANNUAL REPORT)

At DreamWorks Animation we believe that the animation we put out into the marketplace is only as good as the talent within the company that creates it. We are committed to fostering a culture that embraces innovation, creativity, collaboration and a solid dose of fun.

HISTORY

In 1994, Steven Spielberg alongside Jeffrey Katzenberg, a previous Disney official and David Geffen, a music official made Dream Works SKG and Dream Works Animation. The activity studio was spun-off in 2004 with an effective IPO on the New York Stock Exchange that raised $812 million.

Partnerships are key to Dream Works' methodology. In 2006, it partnered with Paramount for movie distribution. In 2008, it collaborated with Intel to concentrate on enhancing 3-D technology and in 2010 it partnered with Samsung Electronics America and Technicolor to offer a finish 3-D home stimulation solution. In 2011, Dream Works entered into a contract with Netflix, as a result they could stream its substance for $30 million for every motion picture and in 2012, the studio declared a joint wander with China Media Capital to make inroads in the Chinese market.

PERFORMANCE AND SUCCESS

The company has made 23 movies in 14 years from 1998 to 2011, it has been nominated for a total of 14 times in multiple categories at the academy awards (Oscars) and has been able to win it only 3 times, the company has a total box office success of $U.S. 9.326 billion with majority of success coming from outside U.S. (non U.S. $5.5 billion, U.S. $3.745 billion). There are 4 movies out of the 23 movies, which had achieved a 90% plus status on the rotten tomatoes score.

PIXAR ANIMATION STUDIOS

MISSION:(TAKEN FROM ANNUAL REPORT)

"Pixar's objective is to ..............................

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