Apply the integration-responsiveness framework to describe which global strategy Hollywood studies followed originally, and how their strategic positioning has changed over time. Explain how and why. When commenting on the disappointing performance of The Great Wall, movie executives continue to highlight the huge market opportunities in China and emphasize that they will soon find the right formula to make movies that are attractive to both American and Chinese audiences alike. Do you agree with this assessment? Why or why not?  

QUESTION

Exam 2 Preparation Guide

Chapter 10 (20 pts)

1. Apply the integration-responsiveness framework to describe which global strategy Hollywood studies followed originally, and how their strategic positioning has changed over time. Explain how and why.
2. When commenting on the disappointing performance of The Great Wall, movie executives continue to highlight the huge market opportunities in China and emphasize that they will soon find the right formula to make movies that are attractive to both American and Chinese audiences alike. Do you agree with this assessment? Why or why not?

Chapter 8 and 9 (20 pts)

1. Why do you think Disney was so successful with its acquisitions of Pixar, Marvel, and Lucasfilm, while other media interactions such as Sony’s acquisition of Columbia Pictures or News Corp.’s acquisition of MySpace were much less successful?
2. Given the build-borrow-or-buy framework (see Exhibit 9.1), do you think Disney should pursue alternatives to acquisitions? Why or why not?
3. Given Disney’s focus on creating and monetizing billion-dollar franchises, some industry observers now view Disney more as a global consumer products company like Nike rather than a media company. Do you agree with this perspective? Why or why not? What strategic implications would it have if Disney is truly a global consumer products company rather than a media and marketing company?

Chapter 5 and 6 (20 pts)

1. How was Gillette initially able to gain a competitive advantage? Was Gillette able to sustain its competitive advantage? If so, how?
2. Do you think online startups such as Dollar Shave Club and Harry’s will continue to steal market share from Gillette? Why or why not?

Lessons Learned (40 pts)

Please complete the below table. Please be specific and give examples based on a case within the Chapter or a MiniCase. Don’t put many lessons, I just want one lesson per Chapter, one case, and one explanation all related to each other. Don’t bring up cases from other chapters other than the ones indicated in the table.

Extra point Question

Please fill out the excel spreadsheet attached in drop box “Exit Exam” to earn 10 extra points in your Exam 2. It takes a few minutes and all you have to do is complete it according to instructions and then submit it through in drop box “Exit Exam” by Due date Exam 2. You can submit anytime next week. This will help the COB for accreditation purposes to assess how well we did with our graduates. Thanks for your cooperation!

ANSWER

Evolution of Global Strategies in Hollywood Studios and Disney’s Success with Acquisitions: Exam 2 Preparation Guide

Introduction

In this essay, we will explore key topics related to global strategies in the entertainment industry, specifically focusing on Hollywood studios and Disney. We will examine the integration-responsiveness framework and its application to Hollywood studios’ strategic positioning over time. Additionally, we will discuss Disney’s successful acquisitions of Pixar, Marvel, and Lucasfilm and compare them to less successful media interactions in the industry. Furthermore, we will analyze the competitive advantage of Gillette and the potential impact of online startups on its market share. Lastly, we will present important lessons learned from select chapters and cases within the textbook.

Chapter 10: Hollywood Studios’ Global Strategy Evolution

The integration-responsiveness framework provides a valuable lens to analyze global strategies. Initially, Hollywood studios followed a global standardization strategy, producing movies tailored to appeal to a broad international audience. This approach aimed to minimize costs and maximize efficiency through a standardized product (Dwivedi et al., 2022). However, as the market landscape evolved, Hollywood studios shifted towards a localization strategy. This change in strategic positioning recognizes the importance of catering to local preferences and adapting movies to specific markets, such as China.

Hollywood studios’ emphasis on the Chinese market stems from its enormous opportunities. Despite the disappointing performance of films like “The Great Wall,” executives remain optimistic about finding the right formula to appeal to both American and Chinese audiences. However, successfully achieving this balance is challenging (Lee, 2008). Cultural differences, storytelling preferences, and censorship regulations present obstacles that must be navigated carefully. By incorporating local elements, cultural references, and collaborating with Chinese production companies, Hollywood studios can create movies that resonate with both markets.

Chapters 8 and 9: Disney’s Successful Acquisitions

Disney’s success with acquisitions like Pixar, Marvel, and Lucasfilm can be attributed to several key factors. Firstly, Disney’s strong focus on creative storytelling and content creation aligned seamlessly with the creative capabilities of the acquired companies. This compatibility facilitated a smooth integration process. Secondly, Disney leveraged its existing distribution and marketing channels to maximize the reach and impact of the acquired properties. By leveraging their extensive networks, Disney propelled the success of these acquisitions.

In contrast, other media interactions such as Sony’s acquisition of Columbia Pictures and News Corp.’s acquisition of MySpace were less successful. These acquisitions lacked strategic vision and failed to generate anticipated synergies. Integration challenges, cultural clashes, and a lack of alignment with the acquiring companies’ core competencies hindered their outcomes.

While acquisitions have proven successful for Disney, alternative approaches should also be considered based on the build-borrow-or-buy framework. By evaluating options for partnerships, licensing agreements, and collaborations, Disney can access new content and expand its portfolio without the complexities and risks associated with acquisitions. This flexible approach allows Disney to leverage external expertise while maintaining its core strengths.

Chapters 5 and 6: Gillette’s Competitive Advantage and Online Startups

Gillette initially gained a competitive advantage through product innovation and differentiation. By introducing the concept of disposable razors and investing in research and development, Gillette established itself as a leader in the shaving industry. The focus on quality, performance, and cutting-edge technology played a crucial role in sustaining their advantage.

However, the rise of online startups like Dollar Shave Club and Harry’s presented a threat to Gillette’s market share. These startups disrupted the traditional razor market by offering affordable subscription-based models and leveraging digital marketing and e-commerce channels (The Associated Press, 2018). Gillette responded by introducing its own direct-to-consumer offerings and focusing on customer loyalty through subscription models. The ability to adapt to changing market dynamics and leverage brand equity and distribution channels will determine Gillette’s success in retaining market share.

Lessons Learned

Chapter 7: The importance of understanding and adapting to cultural differences in international business. Cultural nuances significantly impact the success of global business operations, requiring careful consideration and adaptation.

Chapter 8: The significance of strategic fit and cultural integration in successful acquisitions. Companies must align their strategic vision and integrate acquired firms seamlessly to leverage synergies and achieve desired outcomes.

Chapter 9: The need for a clear strategic vision and alignment of core competencies in acquisitions. Acquisitions must align with the acquiring company’s core strengths and competencies to drive success.

Chapter 10: The shift from global standardization to localization strategies in the film industry. To capture diverse markets, Hollywood studios must adapt their content to cater to local preferences and incorporate cultural elements.

Conclusion

Understanding the evolution of global strategies in Hollywood studios and Disney’s success with acquisitions provides valuable insights into the entertainment industry’s dynamics. The integration-responsiveness framework helps analyze strategic positioning, while Disney’s acquisitions showcase the importance of strategic fit and cultural integration. Gillette’s competitive advantage and the impact of online startups highlight the need for adaptation and innovation. By applying the lessons learned from specific chapters and cases, businesses can navigate challenges and position themselves for success in an increasingly globalized and competitive marketplace.

References

Dwivedi, Y. K., Hughes, L., Baabdullah, A. M., Ribeiro-Navarrete, S., Giannakis, M., Al-Debei, M. M., Dennehy, D., Metri, B. A., Buhalis, D., Cheung, C. M. K., Conboy, K., Doyle, R., Dubey, R., Dutot, V., Felix, R., Goyal, D., Gustafsson, A., Hinsch, C., Jebabli, I., . . . Wamba, S. F. (2022). Metaverse beyond the hype: Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice and policy. International Journal of Information Management, 66, 102542. https://doi.org/10.1016/j.ijinfomgt.2022.102542 

Lee, F. L. F. (2008). Hollywood movies in East Asia: examining cultural discount and performance predictability at the box office. Asian Journal of Communication, 18(2), 117–136. https://doi.org/10.1080/01292980802021855 

The Associated Press. (2018, September 26). Startups shook up the sleepy razor market. Here’s what’s next. CNBC. https://www.cnbc.com/2018/09/26/startups-shook-up-the-sleepy-razor-market-whats-next.html