Case Analysis: Marvel Enterprises, Inc.

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- Position To sustain success, the Marvel managers must employ the following marketing strategy: First and most importantly, it must convert its current, yet individual character fan base into an all-encompassing Marvel follower; effectively launching multiple and new character franchises drawn from its vast library of characters. Additionally, they must decide to venture beyond Marvels current business model and expand into more profitable channels as they are now in a position to fund more advantageous ventures. - Evidence As the case study indicates; the current viability of the Marvel Enterprises profitability depends solely on its long-term licensing model. As seen in its current success that is essentially produced by a minority of blockbuster films that they have licensed their characters to participate in. These include and are limited to Daredevil, X-Men and Spiderman. In short Marvel’s profitability is directly anchored to Hollywood’s prosperities. As you may not realize; Hollywood is an industry based on consumer demand, a demand that fluctuates with the wind. Every blockbuster that is achieved is consistently offsets by a large number of gross profit losing undertakings. In regards to Marvel’s current business plan; a licensed movie’s box office proceeds dictates its licensing returns and influences all of its downstream revenues, with the Marvel comic division being the exception. Therefore, if any licensed big screen ventures produce a less than stellar returns; the future of all of Marvel’s self-maintained revenue streams will be negatively affected. The long term constraint then becomes a question of how long can the licensed Marvel characters continue to be profitable in Hollywood? Unfortunately, the predicted blockbuster The Hulk was a huge failure. If Marvel continues to work its way down its list of popular characters; how do they

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