Question

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.

Answer 1

answer-

Global integration refers to the coordination of the firm's value chain activities across countries to achieve worldwide efficiency, synergy, and cross-fertilization to take maximum advantage of similarities between countries. Global integration and local responsiveness have become known as an integration-responsiveness framework to assist managers in developing a deeper understanding of the trade-offs between global integration and local responsiveness.

The first or in the start we can say that Hollywood applied An export strategy is used when a company is primarily focused on its domestic operations. It does not intend to expand globally but does export some products to take advantage of international opportunities. It does not attempt to customize its products for international markets. It is not interested in either responding to unique conditions in other countries or in creating an integrated global strategy.

Hollywood only made movies and shows which fulfilled the needs of its local business mean American western culture But as the this industry started to expand it started to adopt Multi domestic strategy. A multidomestic strategy customizes products or processes to the specific conditions in each country. In the opening example, Lincoln Electric should have used a multidomestic strategy to customize its manufacturing methods to the conditions in each country where it built factories. Retailers often use multidomestic strategies because they must meet local customer tastes.

Hollywood started to make Chinese movies like Kung fu Panda, karate kids, Indian movies like Oscar winning Slumdog millionaire etc.