Hollywood Goes Global Case
HOLLYWOOD GOES GLOBAL CASE 0
HollywoodGoes Global Case
HollywoodGoes Global Case
Hollywoodmovies have historically dominated the American market but theglobalization concept has led to the business expansion and growth insales and revenues. The foreign expansion impact has surpassed thedomestic (American) market that has continued to experience growth inthe recent years. The facts have made Hollywood to develop productsthat appeal to global audiences such as the casting of foreign actorsin leading roles and recording of special scenes to embrace audiencesin specific markets. However, such turn around for Hollywood has comeamidst challenges such as editing and regulations by governmentofficials prompting delays and pirated DVDs that infringedcopyrights. Additionally, new entrants in the film business industrysuch as Bollywood films that have impacted the global movie industryaffecting Hollywood movies. Hollywood is, thus, compelled to developstrategies that would enhance their dominance, growth, and expansionin the globalized movie market and industry. The stated key facts inthe case, thus, provide the framework that answers the followingquestions.
1.The strategic implications for Hollywood studios in the new movieindustry, opportunities, threats and How to take advantage of theopportunities, while mitigating the threats
Theshift in the economics of the now global movie industry implies thatHollywood has to reciprocate to the realities and variables thatchanged in the new status. Hence, strategize or plan how best toovercome the presented opportunities and counter the threats in orderto realize its business goals and objectives. It is imperative tonote that the new globalized market has created and expandedopportunities for the Hollywood business as noted in the data andstatistics. It shows the impacts that the global platform has broughtto the business that led to increased sales and profitability for thebusiness. Hollywood must change focus and start thinking and act asMultinational Enterprise (MNE) and develop corporate globalstrategies that would sustain its competitive advantage that theyhave. In the new globalized movie market when competing against otherforeign and domestic movie businesses in the world. The strategicimplications for Hollywood movie studios should focus on the benefitsthat arise as a result of going global that include gaining access tothe global world, gaining access to low-costs input factors anddeveloping new competencies (Rothaermel, nd). For example, thestatistics and facts posted by the business have increased the marketshare for the firm that has positively impacted the sales andprofitability of the company. Newer global actors such as FreidaPinto and Dev Patel among others that cost less when compared to thecustomary American Hollywood actors such as Eddie Murphy, Tom Hanks,and Julia Roberts among others would imply low-cost input factorsthat the company can explore to reduced production costs at theexpense of profitability. Additionally, newer competencies have to beexploited by the Hollywood to enhance its strategic measures. Forexample, the Hollywood has invested in research that has led it todevelop products that reciprocate to the global expectations such asrecording in special scenes and casting foreign actors that increasethe global representation. However, there are also possible threatsthat the business might experience as a result of globalization suchas loss of intellectual property, loss of reputation and liability offoreignness. The strategies formulated by Hollywood also have toincorporate the noted possible threats and implement strategies thatminimize the threats.
Theopportunities that Hollywood has as a result of new globalized movieindustry include expanded market opportunities, access to low-costinput factors and developing newer competencies as stated above. Someof the threats likely to experience by Hollywood include liability offoreignness, loss intellectual property rights that have provedreal-time and great threats. Also, challenges resulting fromforeignness liability in the newer markets.
Hollywoodshould take advantage of the opportunities by expanding in marketsbeyond the Europe, and Asian regions to include the middle-East andAfrican. They have to strategize tactically and ensure that theyproduce movies that break out internationally as a requirement in theglobalized market. The foreign market has already proved critical forthe business as a result of increased sales and profitability asnoted in the business statements. Newer competencies that lead tomovies that break out internationally has to be nurtured and developto enhance sustainability and growth in the newer globalized movieworld. Such competencies would add the competitive advantage(Wetzstein, 2013). Hollywood would rely on to overcome possiblechallenges and threats such as competition from the newer players inthe industry. Finally, they need to reduce input factors and embracelow-costs to minimize production costs and enhance profitability. Forexample, they need to shoot movies from alternative scenarios andplaces that offer minimal costs and use of production materials thatreduces the costs to gain the completive advantage and increaseprofitability. At the same time, threats in particular piracy thatinfringes intellectual property rights can be countered by thecompany cooperating with copyright bodies and government agenciesthat counter piracy. Finally, Hollywood to develop custom madebusiness deals in the different foreign markets that take care of theinterest of the players involved in the business, for example,distributors and movie studios that discourage piracy. Finally,embrace technology that discourages piracy such as coding system andalso encourage digital streaming as opposed to physical media such asDVDs and Blue Ray discs. The positive reputation that Hollywood hashad in the US markets would be used to market and encourage itsexpansion such as indicating the number of awards such as Oscars wonand its rich history to counter possible loss of reputation at theinternational level. Extensive research by the firm also should beencouraged to minimize the possible loss in foreignness liability toventure into foreign markets with higher potential for success thanfailure as a result of calculated risk.
2.Prioritization of nations to expand distribution
Theexpansion of the distribution nations would be determined by avariety of factors. The strategic implications would factor inaspects considered before any business expands to newer territoriesto increase the chances of success and minimize possible losses fromsuch actions. It would analyze nations using the CAGE Framework aswell as the Hofstede Cultural Distance models. It would develop ascorecard among Nations that it would likely expand to using the CAGEframework where It would analyze the cultural, administrative andpolitical factors, the geographical location and the Economicfactors. For example, most of the Hollywood movies are produced inEnglish as the main language. It would imply that countries that areAnglophone would have the highest priority when choosing nations toexpand into. However, a language should not only be a barrier asmovies with scripts written in local languages are presentlyavailable to enhance movie consumption beyond the language barrier.Countries that have nurtured the culture of trust and mutual respect,as well as that, embraces ethnic and social networks would beprioritized in making the decisions. Nations that have strong legaland financial institutions, strong political stabilities and sharedcurrency would be prioritized. Next, nations with easier access,communication and connectivity geographically would be preferred.Finally, nations with stronger economic positions that provide thepopulation with purchasing power would be prioritized. The notedfactors in the CAGE increases chances of positive businessdevelopment and growth and, thus, nations that top in the scorecardwould be preferred and prioritized in the distribution expansionprocess (Rothaermel, nd).
Additionally,Hofstede Cultural Distance models would be a reliable source inchoosing nations for distribution expansion. According to Hofstedeculture is shaped and determined by power distance, uncertaintyavoidance, masculinity-femininity, individualism, indulgence andlong-term orientation. Nations that have lower power distance ofdegree index would be preferred. It is because such nationsdiscourage dictatorship and embrace citizen participation in decisionmaking. Nations with lower uncertainty avoidance would be preferredbecause they have fewer regulations and embrace a change of statusquo. Societies that fall in between in the index of masculinity-femininity would be preferred to encourage both consumers andempowerment of the society not based on gender. Collectivism societywould be preferred to individuals because they have tight connectedrelationships. Indulgence society would be preferred it encouragespeople to enjoy and be happy that can be done through film andmovies. Finally, nations with long-term orientation index would bepreferred as they encourage economic development.
3.Alternatives that movie producer can develop to combat piracy.
Thealternatives that movie producers can develop include embracingencoding technology that reduces piracy. The producers also have towork with government agencies that counter copyright infringement andlaw enforcement teams. The producers also should embrace researchthat can reveal in-depth information about the main factors thatcontribute to piracy in different regions and areas that they mightexpand. It might be related to difficulty in accessing genuinedealers and distributors, restricted government regulations or highcost. Such information, hence, can help movie producers to counterthe actions of piracy (Phau, Teah & Liang, 2016). Such asthrough reduction of cost that most of the people in a given area canafford amongst other possible possibilities.
Phau,I., Teah, M., & Liang, J. (2016). Investigating the FactorsInfluencing Digital Movie Piracy. Journalof Promotion Management,22(5), 637-664. doi:10.1080/10496491.2016.1185491
Rothaermel, F. T. ( nd). Global Strategy: Competing Around the World (3rdEd).StrategicManagement (pp.326-361). New York: McGraw-Hill.
Wetzstein,S. (2013). Urban Economic Governance, Business and Globalisation:Australasia`s `Committee-for-[City]` Phenomenon. GeographyCompass,7(6), 385-397. doi:10.1111/gec3.12044
No related posts.