MARVEL

Our Group Member Name :

Name :

1. Jannatul Nayem
2. Baizid Ahasan
3. Lamiha Mazid
4. Tahmina Akter

ID no:

14-28006-3
14-27982-3
14-28094-3
14-28129-3

Acknowledgment :
We would like to express my special thanks of gratitude to our
teacher ( Musrat Mou )who gave me the golden opportunity
to do this wonderful project on the topic ( Marvel
Company ), which also helped Our in doing a lot of Research
and we came to know about so many new things we are really
thankful to them.
Secondly we would also like to thank Our parents and friends
who helped us a lot in finalizing this project within the limited
time frame.

Table of Content :
Introduction
Swot Analysis
BCG Matrix
Porters 5 Forces
Distribution
Industry Environmental Model
Life Cycle
Financial
Key success factors
Recommendations

Executive Summary Marvel has been a highly successful entertainment company in

recent years, offering a wide range of products from comic books
and toys to movies. -Going forward, Marvel needs to address what
kind of growth strategy it should take to remain relevant and
successful in its core business operations. The two main decisions
the company needs to address are:
1. Whether the company should continue to promote its already
successful character base, or promote its lesser, non-n*or characters
going forward
2. Whether or not the company should use its increased profits to
take more firm control of its value chain processes
Three potential solutions have been suggested to address the two
problems above:
1. Continue the promotion of existing characters while investing
heavily into the value chain process
2. Develop and promote newer characters while opting to not invest
into the value chain process
3. Go fore mixture of promoting both new and older characters,
while committal only a limited amount to value chain processes

After considering all possible solutions, the third has been chosen
due to its ability to balance risks and opportunities. Marvel should
look to implement this plan of action by targeting existing
consumers and markets (domestic and abroad), and investing in its
toy and movie businesses, while keeping a sold licensing base to
outside parties.

Introduction :
Marvel Entertainment, LLC, formerly Marvel Enterprises and Toy
Biz, Inc., is an American entertainment company formed from the
merger of Marvel Entertainment Group, Inc. and Toy Biz Inc.The
company is known for its Marvel Comics subsidiary and, as of the
late 2000s, its film production from Marvel Studious.
Started in 1939 as Timely Publications, known as Atlas Comics and
by the early 1950s
Marvel's incarnation dates from 1961, the year the company
launched Fantastic Four and other superhero titles created by Stan
Lee, Jack Kirby, Steve Ditko
Marvels well known work are :
.Spider-Man
.X-Men
.Daredevil
Most of Marvel's fictional characters operate in a single reality
known as the Marvel Universe, with locations that mirror real-life
cities such as New York, Los Angeles and Chicago

SWOT Analysis :
A SWOT analysis guides you to identify the positives and
negatives inside your organization (S-W) and outside of it,
in the external environment (O-T). Developing a full
awareness of your situation can help with both strategic
planning and decision-making.As you might have guessed from that
last sentence, S.W.O.T. is an acronym that stands for Strengths,
Weaknesses, Opportunities, and Threats. A SWOT analysis is an
organized list of your businesss greatest strengths, weaknesses,
opportunities, and threats.
Example of a SWOT Analysis
For illustration, heres a brief SWOT example from a hypothetical,
medium-sized computer store in the United States:

BCG Matrix:
Resources are allocated to business units according to where they are
situated on the grid as follows: Cash Cow - a business unit that has a
large market share in a mature, slow growing industry. Cash cows require
little investment and generate cash that can be used to invest in other
business units.

Porters 5Forces-Entertainment
Industry

THREATOF NEW ENTRANTS:

There is always the possibility of new entrants in the entertainment industry. Producers and or
manufactures may create a product to carve out a particular market or segment niche. The industry has
a history of employees banding together to create a new product to compete in the already in the full
field, but getting a local or national distribution is challenging smaller entertainment providers team
with already established distribution unit have an excellent chance of breaking ground into the market.
(3).
RIVALRY AMONG EXISTING INDUSTRY FIRMS:
The entertainment industry no matter how fragmented it appears much of what is Produced. In terms
of entertainment is held closely by three U.S based media conglomerates, Disney, Viacom and Time
Warner. These conglomerates direct the entertainment market and the direction of the media. (1)
BARGAINING POWER OF BUYERS
Consumers have the abilityTo patronize or not to patronizeAn entertainmentoutlet.HoweverThe
limited ownership prevents Consumers from believingThey will never deal with aCompany they have
been Dissatisfied with in the past (5).
BARGAINING POWER OF SUPPLIERS
Suppliers are creating new outlets for the entertainment industry through technological advances.The
winner for battle technological supremacy will lie solely on which technological outlet has the most
partners.(2)
THREAT OF SUBSTITUTE PRODUCTS:
The threat of any type substitute in the entertainment in industry is high. Most often then not the threat
comes in time of gift giving season when marketing dollars are spent more to sway people from one
product to The other. This time of year is also filled with the hopes of new products entering the
market to capture a
hungry audience. (4)

Strategy :
Building Infrastructure & Layering Strategy :
Strong brand recognition and loyalty. Acquisition of Core Concepts to be used as a vehicle to promote
its characters universe to the in-school market and custom comics. Core Concepts specializes in
distributing free school supplies with featured advertising nationwide instrumental in targeting a new
demographic (8). The comic publishing is a KSF for the business leading to movies, toys, video
games, etc. (11). Layering strategy product selling even without a movie (17).

License Diversification Video Games, Global Markets:

Video games based on licensed IP are more likely to succeed than games based on original IP.
Therefore, Marvels video game licensing opportunities are likely to remain robust (1). Recently
opened offices in the UK and Japan to facilitate international growth (10). It is also striving to
negotiate greater guaranteed royalties with a more concentrated and higher caliber base of licensees
resulting in more revenue streams and adding to the bottom line. Marvel leaning more towards
entering into profit participation, first dollar participation gross participation, and equity participation
agreements. Marvel now controls an estimated 80% of the Sony JV (8).
Toy Business in Transition :
Marvels clever new deal with Hasbro in FY07 and the termination of the TBWW license. Licensing
rate for new deal is smaller, but Hasbro has core competencies in sales and marketing should drive
higher volume, which will grow toy division operating income (1). This move makes strategic sense
because of Hasbros worldwide clout (2).

-2.01
WEAKNESSES
Potential Take Over Target :
Marvel relatively undervalued shares makes it a prime take over target for a large media conglomerate
or other related entertainment or electronic gaming business. The company now has a clean balance
sheet with no debt and a pile of cold hard cash.
Investor Confidence and Departure of Key Leaders :
Marvel is still viewed by many as a comic book company despite changing its name to Marvel
Entertainment. Investors still remember when the firm was putting out fires stemming from its
previous bankruptcy (10). Avi Arad resignation (18). Worried that Spider is a one trick pony
Smaller than Competitors in every Segment
Licensing segment DC Comics, Walt Disney, NBC Universal. Publishing segment -primarily DC
Comics, but publishing now competes with other media. Toy segment Hasbro, Mattel, Jacks Pacific.

OPPORTUNITIES
Strategic / Ultimate Alliances
Marvel should continue to enter into clever strategic alliances, joint ventures, and licensing deals. It
should look to make deals with Pixar for 3-D movie or TV series. Look at Cartoon Network or Fox
Kids for launching new TV series. Look at major network for live-action series for secondary realistic
characters. Seek out Electronic Arts and Take-Two Interactive for video games(10). Look at numerous
opportunities in a wide variety of markets and technologies.
Licensing:
Licensing excluding the Sony JV increased 53% y-o-y due to ability to leverage global market
opportunities Marvel will begin to see benefits of layering strategy in continuing efforts to license i.e.
wireless category (4). 450 active licenses and growing (8).
Putting infrastructure in place to tap into Future GrowthNew entertainment veteran COO of Marvel
Studios. Expand producing its own films using external non-recourse financing. Distributing films for
direct-to-video a good medium to introduce and promote new and secondary characters. TV Program
and even live theatrical productions, among other projects. Hiring new head of Video Game
Development to further exploit video game licensing opportunities (5). New market entry into dog &
cat accessories, pet food and pet tents. (6). Leverage better-known characters to increase exposure of
the lesser-known franchise by interconnecting storyline throughout the Marvel Universe (8).

THREATS
Character Library & Film Flops and Intellectual Property Rights:
There is a fundamental risk that Marvel can not make money on 2ndtier characters like Black Widow,
Deathlike, Ghost Rider, and Luke Cage. A licensees use of characters could dilute or destroy their
value. To date, the company has been successful with 2ndtier characters like Blade Vampire Hunter
and Daredevil. Ownership and profit participation of characters could be in dispute and subject to
litigation (3).
Threats to Toy Biz :
Continuing consolidation of the toy retailers, creating pricing pressures on toy licensees, could hurt
Marvel. Geopolitical risks of manufacturing toys in the Far East and currency fluctuations. Marvel
relies on a master toy licensee for a significant portion of its toy production. Delays in manufacturing
and distribution and/or financial and operational concerns could impede sales (3).
Studio Operations:
Competition for Marvels tent pole movies, as competitors film franchises can be released near
Marvel movie releases and diminish box office performance, as well as take away toy shelf space.
Marvel also relies upon studios for production and release dates of movies. Decisions by a studio
could hurt character tie-in licensing opportunities, particularly with toy sales. In regard to its film
financing studio, Marvel has participated in film production but lacks experience in running a full
studio (3). Independent studios are few and far between these days. Generally, this is because of the
hit-driven nature of the business, high overhead and capital costs and competition among major
studios (7).