Question

1. How has the global environment changed for U.S. (Hollywood) movie studies since 2000? Explain.

2. Apply the integration-responsiveness framework to describe which global strategy Hollywood studios followed originally, and how their strategic positioning has changed over time. Explain how and why.

3. When commenting on the disappointing performance of The Great Wall, movie executives continue to highlight the huge market opportunities in China, and emphasize that they will soon find the right formula to make movies that are attractive to both U.S. and Chinese audiences. Do you agree with this assessment? Why or why not?

4. Assuming that movie studios will be able to create breakthrough hits that are attractive for both Eastern and Western audiences, what type of global strategy would that entail? What are some benefits of this type of global positioning? What are some of its risks? Why is this type of global positioning so hard to achieve?

5. What can movie producers do to ensure that future Chinese-U.S. co-productions are more successful? Explain.

Answer 1

1. Hollywood has been highly successful in the movie industry due to its unmatched competitive advantages, extensive distribution network and the support received from the U.S government. Despite its tremendous growth as the world center for the film industry, Hollywood faces many challenges due to globalization.

Hollywood is known as the major commercial of motion pictures right from the twentieth century till present date. Hollywood’s success of contributing to 60% of the total revenue is mainly due to its competitive advantage in technology and the organizational capacities. In the year 2000, there was a drastic increase of 28.3% in the total receipts for motion pictures when compared to the year 1986. Also, there was an increase of 42.6% in the rental fees generated by the exports of films in 2000. This increase is a drastic increase when compared with the figure in 1986. Thus, this is an example that export market has grown rapidly than the domestic market since 2000 for Hollywood movies.

Additionally, the new electronic distribution technologies have impacted the way that Hollywood and its competitors perform in the industry. These technologies pave way to dispatch the films directly and at a lower cost to individual purchasers. This new challenge creates more intense competition by smaller independent production and distribution companies.