Describe about the Strategic Business Management For Market Competition.
This business case study report is centered around the aspects of the strategic issue, industry analysis and the evaluation of the strategies of UFO Moviez and has therefore highlighted the elements of the business model followed by a list of recommendations to the company to sustain in the tough market competition.
The company was founded in 2004 with about Rupees 1 billion investment with a uniquely designed business model. The company deals with the digital cinema and the provision of latest technology concerning it. The company provides the solution of enabling the file compression without having to compromise the sound and video quality. The company enabled programmers to make such an algorithm that can remove unnecessary data without having quality loss. However, initially, the UFO Moviez was involved in ensuring that the technology can be adopted by the distributors. For that, the technology and services such as digitalizing, distribution, and encoding were provided free of cost. The exhibitors were asked to pay merely 20 to 30% of the total cost. But subsequently, the company had about 1,000 theatres by 2008 under them. The current revenue of the company is INR1,790 million (Kapse, 2015).
For UFO Moviez, the provision of high-quality movies and music are essential factors for the satisfaction of the public. The people-centered business has enabled the organization to focus on the satisfaction of the public rather than making movies and videos. The film business is engaged in the utilization of technology as much as possible. The management of the industry is focused on the advancement of the workforce and technology for ensuring the development of the satisfaction of the consumers (Samuel, 2012).
The customers would experience several problems concerning the movies and entertainment since several industries present is not always affordable. The consumers would not be able to obtain the company that aims to focus toward the general public. Furthermore, the company helps the audience to get entertainment at the most affordable rate with high-quality movies and sound (Nair 2011).
The company creates unique position around the world today by ensuring that their services have appropriate value with respect to customers. Strong technology has been utilized by professionals to manage better outcomes. In fact, the management system is centralized that enables the company to provide effective measures and customer satisfaction.
The employees are further managed by the utilization of Management Information System that supports the organizational management activities for the attainment of ultimate growth. The company also utilizes MIS processes for various aspects such as data analysis, retrieval, and storage. The valuable customer information is also stored without which the company would have suffered from the loss of valuable information (Purohit 2018).
The earnings of the company had been about INR1,790 million, about $92 million, in 2017, which rose about 10% since the previous year. One of the top competitors in this field that provides technological solutions to the film industry is Prime Focus in India. The total revenue of the company is limited to $2.4 million. As compared to the UFO Moviez, the Prime Focus was founded much before, in around 1997. However, the customers are not being given the facilities of higher technology at affordable rates as better as it has been in UFO Moviez. Other than that the top competitors include Eros International Media, Balaji Telefilms, Cinemax India Ltd, and Galaxy Entertainment Corporation Ltd (Benghozi, Salvador and Simon, 2017).
Even though the competitors have been able to ensure that the consumers get the ultimate satisfaction, UFO Moviez still remains on the top due to the ultimate faith value of the customers (Kumar, 2012). The current price of the UFO Moviez remains at 306.90 Rupees in the economic time's website (see Appendix 1).
The organization has been able to present about 1500 movies to the general public in about 22 different languages. Moreover, the revenue generated by the organization has also been higher which tells that the competitors would have to ensure more difficulties to reach the company concerning the technology and income (Mazumder, 2014).
The organization's activities relied on technology that enabled the firm to jump at the foundational benefits in such a short time (Rani, 2011). As compared to the Prime Focus, the company has achieved growth faster in terms of both revenue and technology. It is certain that limited barriers are present concerning the UFO Moviez that can stop its ultimate progress since it is one of the top companies present in India at present. However, the clients and customers of the company have high buyer power because of the availability of many options. The consumers can go for another company that can offer services at a much affordable rate even by compromising quality.
The result of industry analysis can provide three major outcomes or issues concerning the UFO Moviez industry: the threat of substitution, supplier power, and buyer power (Athique, 2014). The deeper look at the analysis above would indicate that the other factors such as competitive rivalry and the new entry have also been among the forces that can impact the organization at large if they were given appropriate power. If the competitive power of the organization is high enough, the firm can face many difficulties. Even though the present scenario shows that the competition does not hold much power, it is not necessary that the future would be the same (Ganti, 2012).
The reason why Prime Focus can become a great competition for the organization is that the clients are slowly turning toward it due to the provision of many Bollywood movies. The company offers 3D conversions, animation, visual effects, and other facilities to the customers so that the viewers can get high-quality experience. Furthermore, the company has also posted about 5000 commercials that have continuously shown improved quality of outcome. Such aspects have introduced new problems for the organization because people have started to turn toward the Prime Focus and other technologies for customer satisfaction.
The powerful strategic alternative for the company includes the enhancement of the market penetration that can further increase the revenue and brand image. For that, the company should focus toward the enrichment of the technologies that can further enable the organization to provide better services as compared to the rivals such as Prime Focus. Such aspects indeed require higher capital resources and more workforce that can make the objectives possibly fulfilled at a faster rate. However, the speed of organizational expansion would also take time because the new market can provide much difficulty for the organization concerning the wide acceptance (Punathambekar 2013).
In the Naukri.com, only 1 job is posted concerning the UFO Movies while the number of jobs constituted for Prime Focus includes about 14 top employment (Naukri.com n.d.). It shows that the company UFO Moviez has low ratings of job rate as compared to the Prime Focus that can also increase the problems for the organization. Such a result has been obtained due to the unfamiliarity of the organization concerning the online-based services. International expansion might be the only best solution for the organization that can ensure higher growth. Furthermore, the company should also enable the system of online payment for the benefit of the clients and customers so that many of them can get attracted. With the new strategy at hand, the organization can attain many customers in the new and the old Indian market as well. For that, the company can learn about the policies and standards of the new market so that the organization can provide effective services and products without any difficulties.
The primary move for the UFO Moviez should be the penetration in the market with an advanced technology. Firstly, the new technologies can be used to attract the customer in the present Indian market and increase the customer base. Furthermore, such as aspect can further increase the success rate as compared to the potential threat namely Prime Focus and Eros International.
Furthermore, since UFO Moviez has been more ideal to the consumers at large, the weak relationship with the producers of the movies enabled the company to fall behind. That is why Prime Focus is able to gain more popularity in recent years concerning the advancement and provision of technology for movie production. Such aspects have been important for the organization since it can help in having an enhanced number of customers all around the world.
The fact that Prime Focus has enhanced a number of customers worldwide can place a negative impact concerning the developmental rate of the company. This fact urges the company to focus on international expansion. Along with that, the organization can also enhance the number of jobs posted online so that the workforce can have expansion along with the company itself. It would help in having ultimate growth and facing competitive advantage.
The summary of this paper is clear: penetration in both the Indian and international market can enable the company to overcome potential challenges and have the provision of long-term success
Athique, A., 2014. Piracy at the frontier: Uneven development and the public sphere. Media International Australia, 152(1), pp.87-97.
Benghozi, P.J., Salvador, E. and Simon, J.P., 2017. The Race for Innovation in the Media and Content Industries: Legacy Players and Newcomers: Lessons for Policy Makers from the Video Game and Cinema Industries. The Journal of Arts Management, Law, and Society, 47(5), pp.346-360.
Ganti, T., 2012. Producing Bollywood: Inside the contemporary Hindi film industry. Duke University Press.
Kapse, A., 2015. Producing film heritage. South Asian Popular Culture, 13(1), pp.89-93.
Kumar, A., 2012. E-MARKETING OF BOLLYWOOD MOVIES (A CASE STUDY OF MOVIES WITH NET EARNING ABOVE INR 100 CRORE).
Mazumder, M.J., 2014. A Comprehensive Study on the Marketing Factors of the Recent Bengali Films considering Indian Movie Industry. INTERNATIONAL JOURNAL FOR MARKETING STUDIES, p.10.
Nair, S., 2011. Providence Equity Partners Tweaks India Strategy. The Private Equity Analyst.
Naukri.com. (n.d.). Jobs - Recruitment - Job Search - Employment - Job Vacancies - Naukri.com. [online] Available at: https://www.naukri.com [Accessed 3 Nov. 2018].
Punathambekar, A., 2013. From Bombay to Bollywood: The making of a global media industry. NYU Press.
Purohit, K.J., 2018. AN ANALYTICAL STUDY OF PERFORMANCE OF INITIAL PUBLIC OFFERINGS (IPOS) AND STATUS OF THEIR MARKET CAPITALIZATION IN INDIA. INDIAN JOURNAL OF APPLIED RESEARCH, 7(7).
Rani, D., 2011. IMPACT OF TECHNOLOGY ON CREATIVE INDUSTRIES: A STUDY OF THE INDIAN FILM INDUSTRY.
Samuel, J.J.J., 2012. A STUDY ON" JOB STATISFACTION" AT HERMES I TICKETS PRIVATE LIMTED. International Journal of Management Research and Reviews, 2(1), p.36.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2021). Strategic Business Management For Market Competition. Retrieved from https://myassignmenthelp.com/free-samples/mngt3012-strategic-business-management/eros-international.html.
"Strategic Business Management For Market Competition." My Assignment Help, 2021, https://myassignmenthelp.com/free-samples/mngt3012-strategic-business-management/eros-international.html.
My Assignment Help (2021) Strategic Business Management For Market Competition [Online]. Available from: https://myassignmenthelp.com/free-samples/mngt3012-strategic-business-management/eros-international.html
[Accessed 25 February 2024].
My Assignment Help. 'Strategic Business Management For Market Competition' (My Assignment Help, 2021) <https://myassignmenthelp.com/free-samples/mngt3012-strategic-business-management/eros-international.html> accessed 25 February 2024.
My Assignment Help. Strategic Business Management For Market Competition [Internet]. My Assignment Help. 2021 [cited 25 February 2024]. Available from: https://myassignmenthelp.com/free-samples/mngt3012-strategic-business-management/eros-international.html.