SOUTHEAST UNIVERSITY BANGLADESH Faculty of Business Administration Course Name: International Marketing Course Instructor: Prof.

Rafique Azad MBA Friday, Semester- Fall 2011 Department: Marketing, Time-09:00 Am

Individual Presentation on Environmental Analysis Of USA ( Hollywood Movie Entertainment)

Student Name Nayeem Choudhury ID 2010210005094

COUNTRY OVERVIEW

Name: United States of America Short form: United States Abbreviation: US or USA Location: North America, bordering both the North Atlantic Ocean and the North Pacific Ocean, between Canada and Mexico. The US is the world's third-largest country by size after Russia and Canada.

COUNTRY OVERVIEW

Climate: The US has a diversified climate. Mostly temperate, but tropical in Hawaii and Florida, arctic in Alaska, semiarid in the great plains west of the Mississippi River, and arid in the Great Basin of the southwest; low winter temperatures in the northwest are ameliorated occasionally in January and February by warm Chinook winds from the eastern slopes of the Rocky Mountains

COUNTRY OVERVIEW

Capital: Washington D.C. Area: 9,629,091 sq. km Population: 290,342,554 (July 2009 est.). The US is the third most populous country in the world after China and India. It has an annual population growth rate of 0.92%. Language: English, Spanish (spoken by a sizable minority)

COUNTRY OVERVIEW

System of the Government: Constitutionbased federal republic, strong democratic tradition. Economic Overview: The US has the largest and most technologically powerful economy in the world. What follows is some economic information about the country: Fiscal Year: 1 October - 30 September

COUNTRY OVERVIEW

GDP: - Purchasing power parity - $10.45 trillion (2009 est.) GDP-Per Capita: - $35,280 GDP-Real growth rate: - Purchasing power parity $36,300 (2009 est.) GDP-Composition by sector: Agriculture: - 2% Industry: - 18% Service: - 80% (2009 est.)

Inflation Rate (Consumer Prices): -1.6% (2009) Labor Force: -141.8 million (includes unemployed) (2009) Labor Force by occupation: Managerial and professional 31%; Technical, sales and administrative support 28.9%; Manufacturing, mining, transportation, and crafts 24.1%; Farming, forestry, and fishing 2.4%; Services 13.6%. Unemployment Rate: 5.8% (2009) Currency: US dollar Budget: Revenues: $1.946 trillion Expenditures: $2.052 trillion (2009 est.)

Political Overview

The United States of America consists of 50 states with limited autonomy in which federal law takes precedence over state law. In general, matters that lie entirely within state borders are the exclusive concern of state governments. These include internal communications; regulations relating to property, industry, business, and public utilities; the state criminal code; and working conditions within the state.

Political Overview

The immense cultural, economic, and military influ foreign relations an especially important topic in American politics, with considerable concern about the image of the United States throughout the world.

Hollywood Movie Entertainment

On February 1, 1887, a real estate developer named Harvey Wilcox registered his 120-acre ranch in southern California as Hollywood, and began to sell subdivisions of the property. In 1911, The first movie studio in the Hollywood area was founded by David Horsley of the Nestor Company. In the same year, another fifteen independent movie studios settled there, and since then Wilcoxs unincorporated, residential district has grown to become the center of the American film and television industry

THE COMPETITIVE ADVANTAGE OF HOLLYWOOD

American culture has a large influence on the world American music is heard all over the world The competitive advantage of American movie is that moviegoers prefer the Hollywood product to their national ones People aged between 12 to 64 in seven Latin American countries showed that 77% of Latin American prefer movies from Hollywood .

THE GOAL OF HOLLYWOOD

Talents get together on a project-to-project basis to capture the top places in the World Box Office The industry is mainly profit oriented. The ultimate goal of majority of producers and directors is to make money

SWOT ANALYSIS
A) Strengths Stable economy and stable Government Adopting culture: The cultural melting pot that is America is a strength for Hollywood Marketing and sales Web sites Studio: Universal, FOX, Paramount

SWOT ANALYSIS

Technology and Innovation Strong Brand Name and reputation

B) Weaknesses Price sensitivity

SWOT ANALYSIS
C) Opportunities First-mover advantages Language D) Threats International rivalry Bollywood Movies Europe

SWOT ANALYSIS

Film Festivals Opera House World Wrestling Entertainment (WWE) Other sports

PORTERS DIAMOND MODEL

A) Factor Conditions: a) Basic Factors: 1) Climate: It is sunny, dry, and about 80 degrees Fahrenheit year round. 2) Location: Washington has beautiful rainforests, Arizona has deserts, and Colorado is full of mountains. There are forests in Pennsylvania and West Virginia

Basic Factors
Therefore, we can see that America is blessed with all its many diverse cities and towns. Thus, Hollywood can take advantage of the hundreds of locations that America is blessed with, and they can easily use them as filming locations.

Basic Factors
3) Human resources: America is a country where the majority of its citizens speak in English. And due to this, the producers and directors in Hollywood can easily choose from this vast availability of human resources that is present in America

Advanced Factors
1) Human Resources: Hollywood is full of opportunities because of the many kinds of resources and scopes available in it. 2) Capital Resources: different film makers do not have to face much difficulty investing in their movies; and they can also afford to take in the best actors and actresses of the world.

Advanced Factors

3) Knowledge resources: Actors: Will Smith, Russell Crow, Ben Affleck Actresses: Penelope Cruz, Angelina Jolie Directors: Hollywood has number of quality directors. Namely, James Cameron and Steven Spielberg. The movie Titanic, which has gone down into history as the top overall grosser, was directed by James Cameron; and movies like Jaws and E.T., were directed by Steven Spielberg.

Advanced Factors

Cinematography: The quality of Hollywood films and the shivers that the audience gets once they watch a movie largely depends on cinematography. Design Centers: This basically consists of places/schools that are specifically established to provide knowledge

Advanced Factors
Training Centers : 1.Hartwick College, Department of Art and Art History, NY 2.New York University, Department of Art and Art profession 3. New York University, Tisch School of the Art 4. Columbia University, School of The Art 5. Fashion Institute of Technology, State University of New York 6. New York Institute of Photography

Advanced Factors
4) Infrastructure: Communication Systems: cell phones, Internet and fax machines. Equipment: They can afford expensive equipment that is able to create the most sophisticated special effects in a movie. Transportation: Hollywood is in Los Angeles. And the communication systems from Hollywood to other states are very good.

Demand Conditions

Segment Structure of Demand: When a movie is released it often premiers in both New York City and Los Angeles, major US cities that are six hours from each other by plane. New York City was originally settled by Italian, Russian, and Irish immigrants. Today there is a large originally European community, as well as a large Chinatown and African-American population.

Segment Structure of Demand

The audience of the US is very diverse. There are Jews, African-Americans, Caucasians, and Hispanics, to name a few of the major ethnic groups. This means that movies can be specifically targeted at certain ethnically defined markets.

Sophisticated and Demanding Buyers

Americans are impatient and realistic. This has pressured moviemakers to do fast camera shots from a variety of angles and to make special effects that appear very realistic. For example, Jurassic Park enjoyed incredible box office success because of the realistic portrayal of the dinosaurs.

Size of Home Demand

The total size of home market is not as important as the nature of the home demand. The US has a population of 290,342,550. India and China have more people. But the GDP per capita in the US is $35,280, making it the wealthiest country in the world. Many and most Americans are movie watchers because they can afford to be. Even the poorest in the US, who live in the ghetto of the city, will watch several movies a year either in the theater or later after they are released on DVD.

Size of Home Demand

US culture is a culture that wants to be entertained. The average American teenager watches 7 hours of television a day Kurt Cobain, the late lead singer of Nirvana wrote a song called Smells Like Teen Spirit, in which he sung the line Here we are. Now entertain us. Those six words sum up American culture well.

Rate of Growth of Home Demand

. More and more people are viewing movies in the USA. That is why we see each year Hollywood generates more revenue and also each year a new blockbuster that breaks records set from the previous year.

Related and Supported Industries

) Joint Innovation with suppliers: An example is FOX Entertainment and AT&T for transmission agreement. The parties have agreed to work together to provide Foxs highresolution programming to AT&T BIS customers through both traditional TV sets as well as digital TV sets.

Complimentary Products

Animated movies and cartoons are the complementary products that Hollywood offers to its world customers. Hollywood cartoons have international competitiveness. They provide the way to make animated movies.

Sharing the same technology

Century Fox: Vertically integrated Entertainment Company with operations in three business segments comprised of Filmed Entertainment, primarily consisting of Fox Filmed Entertainment, a producer and distributor of feature films. Their main movies were: Men of Monor, X-MEN, Tigerland, Cast Away, Quills, and Woman on Top.

The names of some important movie studios

Metro Goldwyn-Mayer Inc.( MGM): It is a global entertainment content company that develops, produces and distributes theatrical motion pictures and television programs, and it intends to create and own branded cable and satellite programming channels. The company's principal subsidiaries are MetroGoldwyn-Mayer Studios, United Artists Corporation, United Artists Films, and Orion Pictures Corporation. Their main movies were: Original Sin, Hannibal, This Is Spinal Tap, The World Is Not Enough, Return To Me...

The names of some important movie studios

Time Warner Inc.(Warner Bros): Time Warner, Inc. is a media and entertainment company. The Company classifies its business interests into six fundamental areas. One of those is Filmed Entertainment. Their main movies were: Proof of Life, Red Planet, Miss Congeniality, Pay It Forward, Driven, and Best of Show.

The names of some important movie studios

Sony Pictures Entertainment: Sony Pictures Entertainments global operations encompass motion picture production and distribution, television programming and syndication, home video acquisition and distribution, operation of studio facilities, development of new entertainment technologies and distribution of filmed entertainment in 67 countries worldwide. Their main creation of movies was: The 6th Day, Charlies Angels, Final Fantasy, Vertical Limit, Saving Silverman, and 28 Days.

The names of some important movie studios

Universal Pictures: Their creation of movies was: Meet the Parents, Billy Elliot, Grinch, and The Nutty Professor.

The names of some important movie studios

Pyramax Studio: Pyramax Studio has two 7,500sq.ft bungalow to support all other movie makers. To make their movies, they have a 5,000 square foot warehouse for moviemakers. The one thing they have big advantage is with their under-water studio which has been designed for maximum efficiency in the use of film or tape for motion picture. Its unique design and four large shooting ports and depth of 11 feet 3 inches will allow coverage which is unique in our movie industry.

D) Firms Strategy, Structure and Domestic Rivalry

Firm Structure: The Hollywood film structure is professional. There is very little scope to gain a family oriented structure in this particular movie industry. Also, like Japan, it has a big impact of being seniors with good works. Each of the works is done with a professional touch.

Firm Strategy
Firm Strategy: America is a capitalistic society. The strategies that the Hollywood industry follows might be categorized as follows: Price, Quality, Differentiation, and Speed. 1) Price: Hollywood dominates the world. They produce movies, which average a filling of 70 % of the seats in theaters It has been found that the average cost of making a Hollywood movie is about $40 million.

Firm Strategy
2) Quality: unbiased censor board which control the movies quality. If any kind of contradictory scene is screened in a movie, Censor Board is there to filter out such a thing and make it more appealing to the viewers. 3) Differentiation: Hollywood movie sector has a lot of differentiation in genre, including Thriller, Action, Romance, Horror, Documentary, Comedy, and Drama. Each of them can be differentiated further.

Firm Strategy
4) Speed: Hollywood releases movies seven days a week and around 360 movies per year. This amount of movies gives Hollywood a competitive advantage.

PORTERS FIVE FORCES MODEL

The threat of entry by new competitors Bollywood movies. If Indian, European, Russian and such other potential film industries The intensity of rivalry among existing competitors For example, Fox, Paramount, Universal and such renowned firms are competing domestically and vigorously.

PORTERS FIVE FORCES MODEL

Pressure from substitute products Sports, sports entertainment, opera house, other entertainment genres are most likely to perform as substitutes for Hollywood movies. The bargaining power of suppliers Moviemakers in Hollywood enjoy the bargaining power. Whatever they charge at reasonable level buyers are bound to pay to enjoy movies.

PORTERS FIVE FORCES MODEL

The bargaining power of buyers

Buyers have bargaining power in the sense that they do not have to watch all the movies that Hollywood produces. Every year the Raspberry Awards lists the Hollywoods bombsmovies that did not do so well in the box office.

CONCLUSION

Hollywood holds the international competitive advantage in the world movie industry. They are clearly above all competitors. In fact, American movies are viewed in nearly every country of the world, even in those that outright oppose America politics. For example, Kim Jong Il, the president of communist North Korea is an American film junkie.

Thank You!

Any Question?!