UFO Moviez – Gentle Disruption Case Study Solution
Entrance in Digital Integration Market:
Internal Analysis:
The entrance of UFO in the Indian movie market was based on exploring the opportunities presented by the media and entertainment. Due to the Indian movie industry’s dependency on the analog platform;UFO was presented with a platform to consider the digitization of the movie industry. The industry’s digitization before the entrance of UFO in the movie industry was based on exhibitors, due to which they neglected the role of producers and distributors. UFO installed 100 digital projections systems to the theaters; the acquisition of MGPEG-4 compression standard in order to receive compressed files through satellite because of the transportation cost that restricted the access of prints by remote theaters. The pay-per-show business model affected the interest of the theater owners to show movie using digital prints, due to which UFO changed its monthly paymentin order to keep the number of advertisements up to the demand, as promised to the advertisers.
Competitive Advantage:
- Change in the business model from per day to monthly, encouraged the use of digital prints, which resulted in continued revenue streams.
- Based on the stable revenue stream;UFO was financed $22 million by a private equity UK-based firm, enabling it to expand the digital prints to 1500 movie theatres.
As compared to 46 percent of the landscape capture by Real Image; UFO had its control over 54 percent followed by its clients, such as: DT Cinemas, Big Cinemas, largest multiplex chain of India through the acquisition of Scrabble – a digital cinema provider and the only one to use VPF contracts with all the major studios of Hollywood.............................
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