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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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