Marvel Enterprises Inc. Case

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Case Analysis: Marvel Enterprises, Inc.__________________________________________ Marvel Enterprises, Inc is an industry leader of character-based entertainment, building its foundation on publishing comic books and licensing character rights over the past seventy years. After encountering some hardships in the late nineties, Marvel repositioned itself as a powerful global firm under the leadership of new CEO, Peter Cuneo. He developed a strategic recovery plan, allowing Marvel to overcome bankruptcy through the monetization of its extensive content library, long term development of characters, and the assurance of high-quality for all Marvel-related products. However, by 2004 concerns arouse regarding the sustainability and continued growth potential of this business model. Marvel needed to determine whether continuing their focus on popular characters was a sustainable strategy or if it was necessary to expand into lesser known characters to reach a larger audience. Cuneo also wondered if Marvel should venture past is current business operations to invest in content creation, rather than licensing the rights to others to do so. Marvel is currently competing in a red ocean, attempting to exploit existing demand and outperform its rival competitor, DC Comics, vying to obtain a greater market share. In order to do this Marvel should consider creating two divisions of character development. The first will focus solely on maintaining popularity and profitability of well-known characters such as Spiderman, while the second will focus exclusively on developing lesser known characters. This will allow Marvel to uphold the reputations and sales of its most profitable characters, while also bringing its unknown ones to superhero status. It is also recommended that Marvel stays true to its production of only publishing and toys, instead of expanding into other areas of content creation. Marvel’s lack of expertise in other areas may lead to lower quality products, inefficient production, and expensive sunk costs that will be lost regardless of the product’s success. Rather than investing in creating new supply chain operations, it is recommended that Marvel invest in digitalizing the Marvel Universe in accordance with growing consumer technological trends. Why Digital Media?

Marvel’s comic books are targeted at male teenagers and young adults between 13 to 23 years old, with an extended readership established within adults in their mid-30s. Its toy division is targeted towards a younger sector, primarily aimed at boys from 4 to 12 years old. Young adults constantly utilize technology and online media tools, and the children are growing up in a day and age where digital technology is an integral aspect of everyday life. In order to continue effectively reaching these consumers, Marvel must take a digital approach in its future. Ever-evolving technologies are increasingly empowering consumers and altering the dynamics of effective advertising and marketing strategies. These changes are redefining how products are sold, created, consumed, and tracked. In order to succeed in this innovative market, Marvel will have to be responsive to these dynamic changes, adjusting its strategies in accordance with technological trends and the impacts they have on consumer behaviours. Today’s consumers seek customization of their digital experiences, combining a variety of media tools to satisfy their preferences. A recent MTV study showed that the average adolescent is a media multi-tasker, constantly accessing a variety of media tools simultaneously, consuming 30 hours of media and entertainment in one day. To maintain Marvel’s leadership in this marketplace, it is essential to digitalize operations and gain a time slot in its consumers’ 30 hour days. By doing so, Marvel will be able to effectively connect with its consumers. Implementation: Digitalizing the Marvel Universe

Marvel can digitalize its operations though technological...
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