Group Members: Farhana Hussain

Contents
1.0 2.0 3.0 Introduction/Objective Conceptual framework Case Study - Case overview - Methodology - Results - Conclusion Teams Recommendations

4.0

1.1 Introduction
Title:
Capabilities, Strategies and Performance amongst the Hollywood Studios

Source:
Strategic Management Journal dated 21 May 2009

Author:
Jamal Shamsie, Xavier Martin and Danny Miller

1.2 Objective
Project based industries

DYNAMIC capabilities
Replication Renewal Products Markets Availability of resources Industry demand

Goals
Financial performance

Strategies

Critical success factors

Turbulent business environment

2.1 Conceptual framework

Dynamic Capability Development Strategy

Dynamic capability is defined as capacity of an organization to

purposefully create, extend or modify its resource base.

Types of strategies:
Experienced success Didnt experience success

Differentiated replication

Differentiated renewal

Competitor

Undifferentiated replication

Undifferentiated renewal

Experienced success

Didnt experience success

Corporation

2.2 Conceptual framework

Hypothesis

Strategy

Differentiated Replication strategy Differentiated Renewal strategy

Resources

That provide access to similar markets/clients Access to larger pool of knowledge/ skill

STRONG FINANCIAL PERFORMA NCE

Industry

Strong overall industry demand Considerable shifts in the level of demand

3.1 Case study

overview

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.

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

3.2 Case study

Methodology

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 of
genres of last 10 most revenue generating movies for the studio and its competitors was considered.

3.2 Case study

Methodology 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 to movie 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 Case study

findings
Respources
Owned theatres
RO S

Stars under contract RO S

Lo High w Differentiated renewal Few stars Many stars New genres in top 10

Lo High w Differentiated replication No theaters Many theaters Consumer spending RO S

Lo High w Differentiated replication Low spending High spending

Demand

RO S
Lo High w Differentiated renewal Few new genres Many new genres

conclusion on hypothesis
Strategy Resources Industry
Strong overall industry demand

3.4 Case study

Differentiated Renewal strategy

Access to larger pool of knowledge/ skill

Considerable shifts in the level of demand

Stronger Financial performance

Differentiated Replication strategy

That provide access to similar markets/clients

4.0 Teams recommendations

Team 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

WHY

HOW

WHO

WHEN

WHERE