The first alternative is to continue the current business model with the Marvel’s current characters. Marvel used their prominent characters, such as ‘spider man’, ‘hulk’, and X-men within the three different divisions, including, ‘Comic-book publishing’, ‘Toys’ and movie production through ‘Licensing’. -While comic book publishing and toys were mostly internally planned and managed by the company, both divisions were successful in terms of popularity and revenue. For instance, the total U.S retail sales for comic book periodicals and trades in 2003 were $300 million, and Marvel had a 40% dollar market share, which was higher than any other competitors. Also, in terms of toys production, Marvel expects Spider Man toy sales of around $165 million, after the release of the movie. -In terms of licensing, the major revenue stream was established by lending those prominent characters to movie productions. Even though Marvel is only gaining a small piece of revenue from those films, considering the market risk and the amount of production fee (or investment?), the income from this segment has been steady throughout the last a few years.
Introducing the lesser known or new characters:
Marvel’s success in the business came from the revenue and popularity of their famous characters. However, Marvel now also has to concern the changing appetite of consumers. The second alternative is to aggressively get ready for that concern, since the main characters are considered as they have reached mature stage in their life cycles.
Just like the any other products in the other industries, consumers tend to change their preferences and often seek for the new products that satisfy their new taste. This may also apply to Marvel’s current popularity. Even though ‘spider man’, ‘hulk’, and ‘X-man’ are popular and has been settled as the major revenue stream, changes in consumer taste could incur significant impact on the Marvel’s...