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1.0 Introduction/Objective
2.0 Conceptual framework
3.0 Case Study
- Case overview
- Methodology
- Results
- Conclusion
4.0 Teams Recommendations
Contents
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1.1 Introduction
Title:Capabilities, Strategies and Performance amongst theHollywood Studios
Source:Strategic Management Journal dated 21 May 2009
Author:Jamal Shamsie, Xavier Martin and Danny Miller
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1.2 Objective
4
Replication
Renewal
Strategies
Products
Markets
DYNAMICcapabilities
Availability ofresources
Industry demand
Critical success
factors
Financialperformance
Goals
Turbulent business environment
Project based industries
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2.1 Conceptual frameworkDynamic Capability Development Strategy
Dynamic capability is defined as capacity of an organization topurposefully create, extend or modify its resource base.
Com
petitor
Differentiated
replication
Differentiated
renewal
Undifferentiatedrenewal
Types of strategies:
Undifferentiatedreplication
Didntexperiencesu
ccess
Experiencedsuccess
C o r p o r a t i o n
Experienced success Didnt experience success
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2.2 Conceptual frameworkHypothesis
Differentiated Replication strategy
Differentiated Renewal strategy
Strategy
That provide access to similarmarkets/clients
Access to larger pool of knowledge/
skill
Resources
Strong overall industry demand
Considerable shifts in the level ofdemand
Industry
STRONG
FINANCIAL
PERFORMA
NCE
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3.1 Case studyoverview
Overview:Hollywood film industry from 1936 to 1965.
15 genres : action/adventure, comedy, crime/gangster, drama,
fantasy, historical, horror, musical, mystery, romance, romantic,
comedy, science-fiction, thriller, war and western.
Objectives of Studios: Target maximum audience segments
Offer a yearly line up of new films with a wide variety of genres Each studio was releasing films in 9-12 genres/year; generally
covering all genes in 2 years time.
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contd.
Dynamic Capability Aspects:
Selective emphasis on various genres at different times:
Differentiated replication:- genres which were successful before
Differentiated renewal:- capture success ahead of competition in new
genres
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3.2 Case studyMethodology
Sample: 7,124 films All films released by 7 major studios from 1936 to
1965 i.e. MGM,Twentieth Century-Fox, Warner Brothers,Paramount, United Artists, Universal and Columbia.
Performance variable: Return on Sales(RoS)
Strategy variable: To derive strategy variable, list ofgenres of last 10 most revenue generating movies for the
studio and its competitors was considered.
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3.2 Case studyMethodology contd.
Interaction Variables:
a) Resources:i) Replication : Owned Theatres
ii) Renewal : Top starts with long term contracts
b) Industry Demand :
i) Replication : % age of household recreational spending devoted tomovie audience
ii) Renewal : No. of new genres amongst top 10 films for the
industry
Analysis:
a) data considered for 7 studios for 29 years (N=203)
b) two different ways of data analysis, got similar results
3 3 C d
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3.3 Case studyfindings
ROS
Lo
w
High
Differentiated replication
No theatersMany theaters
ROS
Lo
w
High
Differentiated renewal
Few starsMany stars
ROS
Lo
w
High
Differentiated replication
Low spending
High spending
ROS
Lo
w
High
Differentiated renewal
Few new genres
Many new genres
Respources
Demand
Owned theatres Stars under contract
Consumer spending New genres in top 10
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3.4 Case studyconclusion on hypothesis
DifferentiatedRenewalstrategy
Access tolarger pool ofknowledge/skill
Considerableshifts in thelevel ofdemand
DifferentiatedReplicationstrategy
That provideaccess tosimilarmarkets/clients
Strong overallindustrydemand
Stronge
rFinancial
performan
ce
Strategy Resources Industry
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4.0 Teams recommendationsTeam strongly agrees with the findings of the case study because
of following reasons:
a) Data collection
b) Data analysis
c) Compatibility with the theoretical concepts of
Strategic Management:
The differentiated approach to marketing results in price premium and
hence better profitability
The availability of competent resources
Markets are moving targets. Products/services should be adapted to
match the lateral/incipient demands of the customers
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WHY HOW WHO WHEN WHERE
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