MARVEL

Our Group Member Name :

Name : ID no:

1. Jannatul Nayem 14-28006-3

2. Baizid Ahasan 14-27982-33. Lamiha Mazid 14-28094-34. Tahmina Akter 14-28129-3

Acknowledgment :

We would like to express my special thanks of gratitude to our teacher ( Musrat Mou )who gave me the golden opportunity to do this wonderful

project on the topic ( Marvel Company ), which also helped Our in doing a lot of Research and we came to know about so many new things we are really thankful to them.Secondly we would also like to thank Our parents and friends who helped us a lot in finalizing this project within the limited time frame.

Table of Content :

•Introduction•Swot Analysis•BCG Matrix •Porter’s 5 Forces

•Distribution•Industry Environmental Model•Life Cycle•Financial•Key success factors•Recommendations

Executive Summary - Marvel has been a highly successful entertainment company in recent years, offering a wide range of products from comic books and toys to movies. -Going forward, Marvel needs to address what kind of growth strategy it should take to remain relevant and successful in its core business operations. The two main decisions the company needs to address are: 1. Whether the company should continue to promote its already successful character base, or promote its lesser, non-n*or characters going forward

2. Whether or not the company should use its increased profits to take more firm control of its value chain processes

Three potential solutions have been suggested to address the two problems above: 1. Continue the promotion of existing characters while investing heavily into the value chain process

2. Develop and promote newer characters while opting to not invest into the value chain process

3. Go fore mixture of promoting both new and older characters, while committal only a limited amount to value chain processes

After considering all possible solutions, the third has been chosen due to its ability to balance risks and opportunities. Marvel should look to implement this plan of action by targeting existing consumers and markets (domestic and abroad), and investing in its toy and movie businesses, while keeping a sold licensing base to outside parties.

Introduction :

Marvel Entertainment, LLC, formerly Marvel Enterprises and Toy Biz, Inc., is an American entertainment company formed from the merger of Marvel Entertainment Group, Inc. and Toy Biz Inc.The company is known for its Marvel Comics subsidiary and, as of the late 2000s, its film production from Marvel Studious.

Started in 1939 as Timely Publications, known as Atlas Comics and by the early 1950s Marvel's incarnation dates from 1961, the year the company launched Fantastic Four and other superhero titles created by Stan Lee, Jack Kirby, Steve DitkoMarvel’s well known work are :

.Spider-Man

.X-Men

.Daredevil

Most of Marvel's fictional characters operate in a single reality known as the Marvel Universe, with locations that mirror real-life cities such as New York, Los Angeles and Chicago

SWOT Analysis:

A SWOT analysis guides you to identify the positives and negatives inside your organization (S-W) and outside of it, in the external environment (O-T). Developing a full awareness of your situation can help with both strategic planning and decision-making.As you might have guessed from that last sentence, S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis is an organized list of your business’s greatest strengths, weaknesses, opportunities, and threats.

Example of a SWOT Analysis

For illustration, here’s a brief SWOT example from a hypothetical, medium-sized computer store in the United States:

BCG Matrix:

Resources are allocated to business units according to where they are situated on the grid as follows: Cash Cow - a business unit that has a large market share in a mature, slow growing industry. Cash cows require little investment and generate cash that can be used to invest in other business units.

Porter’s5Forces--Entertainment Industry

THREATOF NEW ENTRANTS: There is always the possibility of new entrants in the entertainment industry. Producers and or manufactures may create a product to carve out a particular market or segment niche. The industry has a history of employees banding together to create a new product to compete in the already in the full field, but getting a local or national distribution is challenging smaller entertainment providers team with already established distribution unit have an excellent chance of breaking ground into the market.(3).

RIVALRY AMONG EXISTING INDUSTRY FIRMS:

The entertainment industry no matter how fragmented it appears much of what is Produced. In terms of entertainment is held closely by three U.S based media conglomerates, Disney, Viacom and Time Warner. These conglomerates direct the entertainment market and the direction of the media. (1)

BARGAINING POWER OF BUYERS

Consumers have the abilityTo patronize or not to patronizeAn entertainmentoutlet.HoweverThe limited ownership prevents Consumers from believingThey will never deal with aCompany they have been Dissatisfied with in the past (5).

BARGAINING POWER OF SUPPLIERS

Suppliers are creating new outlets for the entertainment industry through technological advances.The winner for battle technological supremacy will lie solely on which technological outlet has the most partners.(2)

THREAT OF SUBSTITUTE PRODUCTS:The threat of any type substitute in the entertainment in industry is high. Most often then not the threat comes in time of gift giving season when marketing dollars are spent more to sway people from one product to The other. This time of year is also filled with the hopes of new products entering the market to capture a hungry audience. (4)

Strategy :

Building Infrastructure & Layering Strategy :

Strong brand recognition and loyalty. Acquisition of Core Concepts to be used as a vehicle to promote its characters universe to the in-school market and custom comics. Core Concepts specializes in distributing free school supplies with featured advertising nationwide instrumental in targeting a new demographic (8). The comic publishing is a KSF for the business leading to movies, toys, video games, etc. (11). Layering strategy product selling even without a movie (17).

License Diversification –Video Games, Global Markets:

Video games based on licensed IP are more likely to succeed than games based on original IP. Therefore, Marvel‟s video game licensing opportunities are likely to remain robust (1). Recently opened offices in the UK and Japan to facilitate international growth (10). It is also striving to negotiate greater guaranteed royalties with a more concentrated and higher caliber base of licensees resulting in more revenue streams and adding to the bottom line. Marvel leaning more towards entering into profit participation, first dollar participation gross participation, and equity participation agreements. Marvel now controls an estimated 80% of the Sony JV (8).

Toy Business in Transition :

Marvel‟s clever new deal with Hasbro in FY07 and the termination of the TBWW license. Licensing rate for new deal is smaller, but Hasbro has core competencies in sales and marketing should drive higher volume, which will grow toy division operating income (1). This move makes strategic sense because of Hasbro‟s worldwide clout (2).

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WEAKNESSES

Potential Take Over Target :

Marvel relatively undervalued shares makes it a prime take over target for a large media conglomerate or other related entertainment or electronic gaming business. The company now has a clean balance sheet with no debt and a pile of cold hard cash.

Investor Confidence and Departure of Key Leaders :

Marvel is still viewed by many as a comic book company despite changing its name to Marvel Entertainment. Investors still remember when the firm was putting out fires stemming from its previous bankruptcy (10). Avi Arad resignation (18). Worried that

Spider is a “one trick pony

Smaller than Competitors in every SegmentLicensing segment –DC Comics, Walt Disney, NBC Universal. Publishing segment -primarily DC Comics, but publishing now competes with other media. Toy segment –Hasbro, Mattel, Jacks Pacific.

OPPORTUNITIES

Strategic / Ultimate AlliancesMarvel should continue to enter into clever strategic alliances, joint ventures, and licensing deals. It should look to make deals with Pixar for 3-D movie or TV series. Look at Cartoon Network or Fox Kids for launching new TV series. Look at major network for live-action series for secondary realistic characters. Seek out Electronic Arts and Take-Two Interactive for video games(10). Look at numerous opportunities in a wide variety of markets and technologies.

Licensing:

Licensing excluding the Sony JV increased 53% y-o-y due to ability to

leverage global market opportunities Marvel will begin to see benefits of layering strategy in continuing efforts to license i.e. wireless category (4). 450 active licenses and growing (8).

Putting infrastructure in place to tap into Future GrowthNew entertainment veteran COO of Marvel Studios. Expand producing its own films using external non-recourse financing. Distributing films for direct-to-video –a good medium to introduce and promote new and secondary characters. TV Program and even live theatrical productions, among other projects. Hiring new head of Video Game Development to further exploit video game licensing opportunities (5). New market entry into dog & cat accessories, pet food and pet tents. (6). Leverage better-known characters to increase exposure of the lesser-known franchise by interconnecting storyline throughout the Marvel Universe (8).

THREATS

Character Library & Film Flops and Intellectual Property Rights:There is a fundamental risk that Marvel can not make money on 2ndtier characters like Black Widow, Deathlike, Ghost Rider, and Luke Cage. A licensee‟s use of characters could dilute or destroy their value. To date, the company has been successful with 2ndtier characters like Blade –Vampire Hunter and Daredevil. Ownership and profit participation of characters could be in dispute and subject to litigation (3).

Threats to Toy Biz :Continuing consolidation of the toy retailers, creating pricing pressures on toy licensees, could hurt Marvel. Geopolitical risks of manufacturing toys in the Far East and currency fluctuations. Marvel relies on a master toy licensee for a significant portion of its toy production. Delays in manufacturing and distribution and/or financial and operational concerns could impede sales (3).

Studio Operations:Competition for Marvel‟s “tent pole movies”, as competitors film franchises can be released near Marvel movie releases and diminish box office performance, as well as take away toy shelf space. Marvel also relies upon studios for production and release dates of movies. Decisions by a studio could hurt character tie-in licensing opportunities, particularly with toy sales. In regard to its film financing studio, Marvel has participated in film production but lacks experience in running a full studio (3). Independent studios are few and far between these days. Generally, this is because of the hit-driven nature of the business, high overhead and capital costs and competition among major studios (7).