Marvel Case
Summarize the Situation
Marvel Enterprises Inc, is famously known for one of the most recognizable collections of characters in the entertainment industry. The proprietary library of over 4700 characters contributed to the success of the company, in which the characters have been featured in various media forms for over 70 years. However due to various issues, Marvel was forced to file for bankruptcy in the late 1990s. Nevertheless after Toy Biz, Inc. acquired the company out of bankruptcy, it formed a new board and a new strategic direction. The three key strategies that can be identified to Marvel's success are: 1) monetizing the content library via licensing characters for the use of media products and consumer products i.e. motion pictures, apparel 2) managing the library of characters to foster long-term value (each character with a career plan) 3)ensure quality of the content that featured Marvel characters by retaining some form of control over the creative process.1
Despite Marvel's remarkable rise, doubts were raised about the business model and its growth potential. Two key marketing issues are believed to be critical as there exist mounting concerns about Marvels' future success. Firstly, the issue is with regards to what characters to invest in from the collection. The question raised was whether Marvel should continue to capitalize on the "blockbuster" characters or allocate resources to the lesser-known characters. Secondly, Marvel's management faced the issue whether it was wise for the company to go beyond the current business model and move into capital-intensive activities i.e. content production and distribution to the forefront.2
Proposed Idea(s)
Marvel should focus on shifting gears towards the lesser-known characters and develop them by pairing or grouping them in films. Secondly, Marvel should continue to follow the
1 Elberse, Anita, "Marvel Enterprises, Inc." Harvard Business School. 5 May 2005. Pg.4
2 ibid pg. 12 current business
Marvel Enterprises Inc, is famously known for one of the most recognizable collections of characters in the entertainment industry. The proprietary library of over 4700 characters contributed to the success of the company, in which the characters have been featured in various media forms for over 70 years. However due to various issues, Marvel was forced to file for bankruptcy in the late 1990s. Nevertheless after Toy Biz, Inc. acquired the company out of bankruptcy, it formed a new board and a new strategic direction. The three key strategies that can be identified to Marvel's success are: 1) monetizing the content library via licensing characters for the use of media products and consumer products i.e. motion pictures, apparel 2) managing the library of characters to foster long-term value (each character with a career plan) 3)ensure quality of the content that featured Marvel characters by retaining some form of control over the creative process.1
Despite Marvel's remarkable rise, doubts were raised about the business model and its growth potential. Two key marketing issues are believed to be critical as there exist mounting concerns about Marvels' future success. Firstly, the issue is with regards to what characters to invest in from the collection. The question raised was whether Marvel should continue to capitalize on the "blockbuster" characters or allocate resources to the lesser-known characters. Secondly, Marvel's management faced the issue whether it was wise for the company to go beyond the current business model and move into capital-intensive activities i.e. content production and distribution to the forefront.2
Proposed Idea(s)
Marvel should focus on shifting gears towards the lesser-known characters and develop them by pairing or grouping them in films. Secondly, Marvel should continue to follow the
1 Elberse, Anita, "Marvel Enterprises, Inc." Harvard Business School. 5 May 2005. Pg.4
2 ibid pg. 12 current business