2. What forces are driving change in the movie rental industry? Are the combined impacts of these driving forces likely to be favorable or unfavorable in term of their effects on competitive intensity and future industry profitability? There are more than one force that are driving change in the movie industry. Examples are competition from rivals, a major increase in buyers or users of these movie rental businesses, innovation in cost and giving low cost to these movie rentals.
Therefore, in order to stay competitive, Satre has decided to focus on Harrah’s core competency, which is customer loyalty. In this connection, he has worked towards hiring a competent team, which in turn has developed a data-driven marketing strategy. While at the time, Harrah’s seems to be reaping the benefit of these efforts with a 100% growth in stock price and profits; Satre is concerned with determining how much these marketing efforts had actually contributed to increased profitability, and whether these improved results were actually sustainable or simply a one-off occurrence. SWOT Analysis Strengths | Weaknesses | - Investment in Information Technology | - Inability to compete on 'innovation' with the newer casinos (eg. Mirage and MGM) | - Excellent customer service (as recognized by Casino Player Magazine) | - It is an over 50-year-old company, making across-the-board facility upgrades difficult & expensive | - 50% growth in revenue (higher than industry average) | | - 100% growth in stock price and profits | | - Patented integration of IT network across Harrah's properties | | - Data-driven
I. Profitable prospects of buying movie sequel rights Arundel Partners came up with the innovative idea of purchasing the sequel rights for the entire production of films produced by one or more major U.S. movie studios before the first film is even under production. Then the company could take advantage of the special characteristics of the movie industry. For example, Arundel Partners could track the box office performance of the first movie after it was released for a few weeks in theaters and could then predict if the sequel would be profitable or risky--depending on how much moviegoers liked the original. In other words, Arundel Partners structured their investment as a call option; the purchase of the sequel rights allows the
* #2 MGM this Innovation change was due for the company improvement and to lead competition. Differs from others how? * #1 Caesars differs from others because even they filled bankruptcy they still are in operation. * #2 MGM differ from others that they are number one leader the casino industry in Las Vegas. Unintended consequences from Image * #1 Caesars bankruptcy consequences for the image will be their credibility and accountability.
Case: AXA MONY Question 1: Why is AXA bidding for MONY? Does the deal make sense for AXA; for MONY shareholders; for mgmt? As a MONY shareholder, what are your concerns about the deal? For AXA • Growth: Horizontal merger, AXA’s sales force in US by 25% → hard to achieve organically • Cross-marketing → Distribution systems complementary, and products (AXA strong in the variable annuity marketplace and having some new life products that could be offered by MONY’s sales force) • Bidder share price increased following the announcement; looks like the market is positive as well. For MONY • Poor performance in 01-02, ROE of 1% compared to industry of 10%, valid argument?
Rosewood’s management used property specific advertising because it believed that using a marketing strategy based on the individual property brand would best distinguish Rosewood properties from its corporate branded competitors. However, Rosewood’s competitors are not exclusively corporate branded luxury hotels, they also include collections of individually branded unique luxury hotels. Although the company is doing well, the luxury hotel segment is highly competitive and becoming inundated with competition. In response to this, Rosewood’s new president and CEO, John Scott, is considering a new marketing strategy that will allow the company to enhance profits and boost growth. The new strategy would allow Rosewood to claim a portion of the changing market by creating consumer awareness of its brand, thus enhancing customer loyalty.
Is supplier power low or high? On the other hand, supplier power in the movie rental industry is recognized as low. As previously described, there are many different choices to rent movies from. In spite of this realization, movie rental companies need to constantly maintain competitive advantages in order to stay afloat in this business. Examples of supplier power at the weaker end of the spectrum are video rental stores.
Charles Schwab 2007 As technology and markets evolve, organizations must evolve with them. In the case of Schwab this includes growing the size and area of the company’s focus. As technology changed, it paved the way for competitors to surpass Schwab as the low cost option, while expanding their offerings. 1.) Up until the mid-1990’s, how did Schwab position itself in the Brokerage industry?
Growth of individual competitors strengthens their brand equity (and perhaps diminishes Kodak perceived quality edge) Alternative 3 - Reposition the overall Kodak product line to skew toward the higher end products. Concede the economy market and offer a film between "Gold Plus" and "Royal Gold." Replace "Funtime" with "Gold Premium Plus." Pros • Retain Kodak's respected brand equity, no new product or packaging to detract from image as quality • Higher gross margins (see Table 2) • Distances perceived quality divide between Kodak and low-price competitors • Maintains Kodak's reputation as a market leader, as opposed to a "me too" strategy of following competitors Cons • Concede economy market segment • Give up some market share Recommendations Kodak should abandon Funtime film and pursue an alternative strategy. We recommend that Kodak move upscale by offering a product between "Gold Plus" and "Royal Gold," such as "Gold Premium Plus."
How to expand its product reach and close the gap between $6-$8 million and 25 million? ……………………………14 6.1 Why we need to enter the retail store? 6.2 How to enter the retail? How to increase the revenue? 6.2.1 New Brand/Product 6.2.2 Retail Cost reduction 6.2.2.1 one is the order point and inventory cost 6.2.2.2 another one is the waste of internal cost, such as transportation cost 6.2.3 Direct selling cost reduction 6.2.4 Building up the corporate image and value is vital to the success of firms.