Marvel Enterprises Inc
ENTERNTAINMENT MARKETING CASE
MARVEL ENTERPRISES INC
ABISHEK BHASIN
2091775562
Marvel Enterprises, Inc. is an industry-leading firm whose core business is character-based entertainment. Marvel’s foundation and success is built on their proprietary library of over 4,700 characters featured in a variety of media for nearly seventy years (1939-2004). Marvel utilizes its character franchises in licensing agreements, and publishing of comic books through the division of Marvel Comics. Marvel's strategy is to leverage its characters in a growing array of opportunities around the world, through their main business of licensing for entertainment media including feature films, consumer products, toys, video games, animated television, and direct-to-DVD. After successfully repositioning the firm as a global player, post bankruptcy, Marvel’s business model is raising concerns from both critics/analysts and shareholders. Marvel’s growth does not seem sustainable as their current business culture of investing in low capital intensive projects are yielding low and safe returns that are hindering Marvel from extending their current growth rate; and in addition, shareholders, including management, are becoming skeptical on how long they can rely on their prominent characters for a large portion of the company’s earnings. Four major forces shape the media and entertainment industry: accelerating pace of change; increase levels of competition; sustained financial pressure; and increase in unpredictability and risk[i] . Marvel needs to ensure that they can utilize these forces both efficiently and effectively in their favour to build the Marvel Family and brand recognition. Therefore, it is recommended that Marvel enter the business of producing digital and online media, such as movies, television and online web streams; and using the new business medium to help introduce other characters while continuing to leverage Marvel’s more popular assets to grow earnings and
MARVEL ENTERPRISES INC
ABISHEK BHASIN
2091775562
Marvel Enterprises, Inc. is an industry-leading firm whose core business is character-based entertainment. Marvel’s foundation and success is built on their proprietary library of over 4,700 characters featured in a variety of media for nearly seventy years (1939-2004). Marvel utilizes its character franchises in licensing agreements, and publishing of comic books through the division of Marvel Comics. Marvel's strategy is to leverage its characters in a growing array of opportunities around the world, through their main business of licensing for entertainment media including feature films, consumer products, toys, video games, animated television, and direct-to-DVD. After successfully repositioning the firm as a global player, post bankruptcy, Marvel’s business model is raising concerns from both critics/analysts and shareholders. Marvel’s growth does not seem sustainable as their current business culture of investing in low capital intensive projects are yielding low and safe returns that are hindering Marvel from extending their current growth rate; and in addition, shareholders, including management, are becoming skeptical on how long they can rely on their prominent characters for a large portion of the company’s earnings. Four major forces shape the media and entertainment industry: accelerating pace of change; increase levels of competition; sustained financial pressure; and increase in unpredictability and risk[i] . Marvel needs to ensure that they can utilize these forces both efficiently and effectively in their favour to build the Marvel Family and brand recognition. Therefore, it is recommended that Marvel enter the business of producing digital and online media, such as movies, television and online web streams; and using the new business medium to help introduce other characters while continuing to leverage Marvel’s more popular assets to grow earnings and