Marvel Case Analysis

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  ENTERTAINMENT
 MARKETING
  MKTG
 4321
  STEVE
 PULVER
 
 
 
 

MARVEL
 ENTREPRISES,
 INC.
 
HARVARD
 BUSINESS
 SCHOOL
  CASE
 STUDY
 ANALYSIS
  BLANCA
 RUIZ
 PRADA
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

The
 word
 Comic
 comes
 from
 the
 Greek
 word
 komikos
 and
 is
 defined
 as
 “a
 magazine,
  especially
  for
  children,
  which
  contains
  a
  set
  of
  stories
  told
  in
  pictures
  with
  a
  small
  amount
  of
  writing”.1
 Some
  people
  would
  disagree
  saying
  there
  is
  a
  wide
  range
  of
  publications
 targeting
 an
 older
 generation
 of
 comic
 fan
 collectors.
 The
 truth
 is
 that
  comic
 producers
 may
 direct
 their
 products
 to
 a
 very
 diverse
 market
 in
 other
 to
 take
  advantage
  of
  the
  characteristics
  of
  different
  consumers.
  The
  following
  analysis
  explores
 the
 situation
 of
 Marvel
 Enterprises,
 Inc.,
 a
 comic
 company,
 initially
 founded
  in
 1930’s
 as
 Marvel
 Comics.
 
  Marvel
 Comics
 was
 publicly
 listed
 in
 1989
 under
 the
 name
 of
 Marvel
 Entertainment
  Group.
 The
 company
 was
 known
 for
 some
 classic
 characters
 like
 The
 Human
 Torch,
  The
 Amazing
 Spider
 Man,
 The
 Fantastic
 Four
 or
 Captain
 America.
 Taking
 advantage
  of
  1990’s
  growing
  market,
  the
  management
  team
  of
  Marvel
  speculated
  with
  the
  production
  of
  comic
  books,
  by
  increasing
  the
  number
  of
  publications
  and
  their
  prices.
 This
 resulted
 in
 an
 increase
 in
 the
 total
 revenues
 of
 the
 company,
 but
 also
 a
  significant
  decrease
  in
  their
  overall
  quality.
  When
  the
  market
  stabilized,
  the
  company
 lost
 many
 regular
 customers,
 which
 caused
 an
 important
 drop
 in
 sales.
 The
  magnitude
  was
  so
  that
  Marvel
  Entertainment
  had
  to
  file
  for
  bankruptcy
  in
  1996.
  (Image2)
 
 
  One
  year
  later,
  a
  merger
  between
  Marvel
  Entertainment
  group
  and
  Toy
  Biz
  ended
  the
  comic-­‐publisher’s
  bankruptcy
  situation
  by
  forming
  a
  new
  company:
  Marvel
  Enterprises,
  Inc.
  The
  new
  management
 team
  immediately
  got
  to
  work
  implementing
  a
 3-­‐angled
 strategy,
 in
 an
 attempt
 to
 revive
 the
 company.
  On
 one
 hand,
 Marvel
 started
 to
 license
 its
 characters
 to
 media
 companies.
 By
 doing
  so,
 Marvel
 was
 able
 to
 increase
 its
 portfolio
 with
 products
 for
 which
 it
 didn’t
 have
  the
  infrastructure
  to
  manufacture
  on
  its
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