Case Essay for Marvel Enterprise Inc.
Issue Identification
The first issue identified is if Marvel’s increasing success was due to over-reliance on a limited set of prominent characters such as Spiderman. From the Harvard Business Review, concentration on a few blockbuster aspects made the company overcome its bankruptcy since the characters appealed to consumers of all ages, hence increased the company’s revenues. The second issue that Cuneo was wondering about was the appropriate marketing strategies that would allow Marvel to maintain its smooth upward trajectory. Peter Cuneo, Marvel’s former vice president, and CEO asked whether it was possible to streamline operations through the expansion of media and consumer products. The third issue raised in the case study was whether it was wise to maintain the current business model or adopt a capital-concerted model. According to Cuneo, Marvel had experienced a superior market performance for six years up to 2004. However, Cuneo doubted the sustainability of the current business model, arguing that it had a low potential of sustaining profitability.
Problem Analysis
The primary problem facing Marvel is how it can adapt successful marketing and capture as many consumers as it can. On the first issue identified, Marvel Enterprise Inc. should continue relying on a limited set of blockbusters rather than focusing on other lesser-known characters. The theory of reasoned action drafted by Martin Fishbein in the early 1960s can correctly explain this first issue. According to this theory, consumers use their pre-existing attitudes in the decision-making process. Therefore, since consumers have already developed a positive hook to a few set of blockbuster characters, Marvel should continue to make use of these characters to maintain their level of success. On the second issue identified, Marvel needed to go beyond its current business model and incorporate a capital-intensive model characterized by adding other profitable activities in its entertainment activities. Investing capital in other beneficial activities would make the company to maintain its profit levels. As an example, the company would have focused on investing in toys based on Marvel characters the Hulk and Spiderman. Third, the company had to decide on the appropriate marketing strategies that would enable it to maintain its success if it incorporated brand new characters and restricted famous characters.
Recommendation
The first course of action recommended for this case study is for Marvel to introduce brand new characters while at the same time keep the few famous figures such as Spiderman. According to the Harvard Business Review, the company holds more than 4,000 minor characters in its library. The enterprise can begin by adding about 10% of new characters in every new film. The company can also introduce new characters in licensing franchises to help maintain consumer’s interests. However, this course of action will attract expected adverse outcomes and inherent risks. First, it will interfere with the social patterns and overall consumer behavior, where the consumer’s taste will change and decrease the volume of success for the company. However, Marvel Enterprise Inc. can only integrate new brand characters if it adopts a consumer-centric marketing strategy, where the new characters will have emotional appeals to influence target consumers. The aspect of the problem that remains unresolved is Marvel’s environmental sustainability, especially in resource and budget allocation. Another central issue that remains unresolved in this case study is the legal components such as labor law and discrimination law that influence Marvel’s character screening decisions.
Reference
Elberse, A. (2011). Marvel Enterprise Inc. (Abridged) (N9-511-097). Harvard Business School.