Mini Case Study Hollywood

Running Header: Mini case study: Hollywood Goes Global
Mini Case Study: Hollywood Goes Global
Shahbaz Khan
Albany State University
MGMT 6199, Business Policy & Strategic Mgmt.
Dr. Devi Akella
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Hollywood case study
Questions:
1. How has the global environment changed for U.S. (Hollywood) movie studios
since 2000? Explain.
 The global environment changed drastically for the U.S. (Hollywood) movie
studios in the early 2000s. Globalization has changed the economics of the
industry. The case study stated that by 2020 more than 70 percent of total ticket
sales for Hollywood blockbusters will come from foreign ticket sales. Foreign
ticket sales used to be 50 percent in 2000. Hollywood is unable to continue
producing big-budget movies without foreign revenues. Foreign sales now make
or break the success of the newly released big-budget film. Movies must do well
in China because it has become the largest market globally.
2. Apply the integration-responsiveness framework (see Exhibit 10.8) to describe
which global strategy Hollywood studios followed originally, and how their
strategic positioning has changed over time. Explain how and why?
 Global integration refers to coordinating the firm's value chain activities across
countries to achieve worldwide efficiency, synergy, and cross-fertilization to
maximize similarities. Global integration and local responsiveness have become
known as an integration-responsiveness framework to assist managers in
developing a deeper understanding of the trade-offs between global integration
and local responsiveness.
 At first, Hollywood applied an export strategy used to focus on its domestic
operations primarily. However, it does intend to expand globally and export some
products to take advantage of international opportunities. Initially, they
implemented a global strategy that showed the same actual films abroad, but
now they sometimes make different films, so the government has no control over
modified scenes in the movie.
 Hollywood only made movies and shows that fulfilled its local business's needs
meant American western culture. Still, as this industry started to expand, it began
to adopt Multi domestic strategy. A multi-domestic plan customizes products or
processes to the specific conditions in each country.
3. Given the economics of the now global movie industry, what are the strategic
implications for Hollywood studios? What are some opportunities, and what are
some threats? How should Hollywood movie studies take advantage of these
opportunities while mitigating the threats?
Mainly due to the collapse of DVDs and Blu-ray sales, Hollywood could not
produce movies with high budgets without using foreign revenues. By 2000, the
sale of foreign tickets to film in Hollywood was so high that it was almost 50% of
the worldwide total, and by 2014, they made up to two-thirds, with some of the
movies crossing 80% of total receipts earned by the box office. Some of the
opportunities are that the industry needs to make movies become blockbusters
internationally and casting foreign actors in leading roles and adapting scripts to
appeal to worldwide audiences are other opportunities. On the other hand, some
of the threats are content editing by the government before its official screening,
and another threat is low-cost foreign competition.
4. When commenting on the disappointing performance of The Great Wall, movie
executives continue to highlight the huge market opportunities in China and
emphasize that they will soon find the right formula to make movies that are
attractive to both American and Chinese audiences alike. Do you agree with this
assessment? Why or why not?
 The tastes and preferences regarding movies are very different in America
compared to China. Suppose Hollywood wants to take advantage of the massive
market in China. In that case, they need to improve the quality of their work by
studying more about the audience to create movies that are blockbuster hits
globally.
o Assuming that movie studies will be able to create breakthrough hits that
are attractive for both Eastern and Western audiences, what type of global
strategy would that entail? What are some benefits of this type of global
positioning? What are some of its risks? Why is this type of global
positioning so hard to achieve?
 The type of strategy they are following is the global standardization
strategy. The strategy refers to using standardized marketing
messaging and campaigns across markets, countries, and cultures.
A few benefits from this are Hollywood will make more money,
diverse labor, and low-cost labor. Global standardization risks no
local customers, wage increases, and currency rates.
 It is hard to achieve global standardization because of Pricing,
Policies and Regulation, Communication, Large structures, and
Currency exchange rates.
o What can movie producers do to ensure that future Chinese-American co-
productions are more successful? Explain.
 Marvel Movie producers have done an outstanding job with their
latest movies, such as Shang-Chi, The Legend of The Ten Rings,
and ETERNALS, by incorporating cross-culture and representing
China to give Hollywood its first Asian superhero. Shang-Chi and
Eternals both crossed 400 million estimated by the global box
office.
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Running Header: Mini case study: Hollywood Goes Global

Mini Case Study: Hollywood Goes Global

Albany State University

MGMT 6199, Business Policy & Strategic Mgmt.

Dr. Devi Akella

since 2000? Explain.

ticket sales used to be 50 percent in 2000. Hollywood is unable to continue

in China because it has become the largest market globally.

2. Apply the integration-responsiveness framework (see Exhibit 10.8) to describe

countries to achieve worldwide efficiency, synergy, and cross-fertilization to

maximize similarities. Global integration and local responsiveness have become

known as an integration-responsiveness framework to assist managers in

developing a deeper understanding of the trade-offs between global integration

and local responsiveness.

 At first, Hollywood applied an export strategy used to focus on its domestic

products to take advantage of international opportunities. Initially, they

modified scenes in the movie.

to adopt Multi domestic strategy. A multi-domestic plan customizes products or

processes to the specific conditions in each country.

opportunities while mitigating the threats?

and another threat is low-cost foreign competition.

4. When commenting on the disappointing performance of The Great Wall, movie

executives continue to highlight the huge market opportunities in China and

assessment? Why or why not?

compared to China. Suppose Hollywood wants to take advantage of the massive

positioning so hard to achieve?

 The type of strategy they are following is the global standardization

strategy. The strategy refers to using standardized marketing

messaging and campaigns across markets, countries, and cultures.

diverse labor, and low-cost labor. Global standardization risks no

local customers, wage increases, and currency rates.

 It is hard to achieve global standardization because of Pricing,

Policies and Regulation, Communication, Large structures, and

Currency exchange rates.

o What can movie producers do to ensure that future Chinese-American co-

productions are more successful? Explain.

 Marvel Movie producers have done an outstanding job with their

latest movies, such as Shang-Chi, The Legend of The Ten Rings,

and ETERNALS, by incorporating cross-culture and representing

China to give Hollywood its first Asian superhero. Shang-Chi and

Eternals both crossed 400 million estimated by the global box

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