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Questions Covered in the Solution
- Japanese Animated Films
Japanese animated films, featuring cute girls with improbably big eyes and cuddly creatures with squeaky voices, used to be scoffed at as a cultural curiosity whose appeal in the west was limited to children and cartoon junkies. But in recent years the market for anime has found a wider audience, becoming one of the country’s most valuable exports.
There are about 430 anime production companies in Japan. They employ large numbers of people to create hundreds of detailed drawings that the films require. It takes 100 people about three to three-and-a-half months to complete a 21-minute programme for a typical TV slot. If the programme becomes a big hit, the profits are shared by the TV broadcaster, the advertising agency, and the financial backers who invest in the projects. The studio that created the anime is paid costs but is excluded from profit sharing. Programmes cost on the average about Y13m to make, and the production company on the average receives about Y9m to Y10m from TV broadcasters. Some anime production companies generate additional revenues through toys, T-shirts, and other merchandizing if they retain rights to drawings of popular programs, but most have to forgo the rights to the original drawings in order to pay overheads and finance the production of the projects.
- Analyze the above description of the Japanese animation industry using Porter’s Five Forces model.
- How can widespread availability of high-speed broadband internet influence the industry’s competitive conditions? And; in continuation, why and what strategies can be adopted going forward by a typical mid-sized production company?
- Mayfair Flowers
Janet Walsh is the founder and manager of ‘Mayfair Flowers’, a specialist event florist that does most of its business in the City of London. Janet started her business after being made redundant from her work as a manager in a major investment bank in the City. During her time as an accounts manager Janet was often involved in organizing Christmas events and other parties for her employer. This brought her into contact with florists who provided flowers and floral arrangements for the event. She discovered that she enjoyed picking designs and overseeing the floral arrangements. After her exit from the bank, Janet decided to start her own business specializing in events for the corporate and business sector. Using her contacts in the City she obtained her first contracts. From this small beginning Janet’s business has grown and prospered, built on repeat business from satisfied clients, and word-of-mouth that has helped her gain new clients. Thus, notwithstanding competition from other companies which provide a similar service in the London metropolitan area, Mayfair Flowers’ growth has been strong; in fact, it has been so strong that Janet has been forced to taken on an assistant to deal with increasing demand. She is also considering a move to a larger space to accommodate the volume of business, and is negotiating opening a florist shop in the West End for walk-in customers.
The operations of Mayfair Flowers are straightforward. Janet Walsh visits potential clients’ premises to discuss their requirements and evaluate the space and layout where the floral installation will be placed. Once price and terms are agreed, Janet enters the booking into her schedule. Two days before the event she makes her way to the Covent Garden flower market, the major London wholesale market where fresh cut flowers are on sale from all over the world. While selecting flowers, Janet is particularly careful to purchase flowers that will bloom on the day of the event, thereby ensuring maximum impact for the floral presentation. Walking from store to store in the market, Janet selects flowers that meet the client’s specific request, and on occasions when asked to exercise her design talents, she procures flowers that will be used in her own imaginative floral arrangements.
- What are the valuable resources and capabilities at the disposal of Mayfair Flowers? Why?
- Provide strategic recommendations with rationales for Janet for evolving her strategy to cope with the growth of Mayfair Flowers?
Sample of Solution
Analyze the above description of the Japanese animation industry using Porter’s Five Forces model.
For critically analyzing the position of industry in the market, Poster’s five force model is quite sufficient, as it would be focusing on all the aspects of the industry. This model would include the analysis covering Threats of Substitutes to the industry, threats of new entrants in the market, competition in the market and influence of buyers and sellers on the firms prevailing in that industry. While being a part of growing economy, Japanese animation industry can have potential threats to its status quo. While analyzing the growth of economy and animation industry, it becomes quite evident that a significant number of new entrants are on their way to populate this industry, which would ultimately lead to the cut-throat competition in this industry.
How can widespread availability of high-speed broadband internet influence the industry’s competitive conditions? And; in continuation, why and what strategies can be adopted going forward by a typical mid-sized production company?
The tech nature of the Japanese animation industry appeals greater impact from the widespread availability of high-speed broadband internet. This impact can be realized by the fact that the products of animation industry are virtual in nature, and internet is an effective channel for trading these anime products (Michael, 2012). Hence, the widespread availability would benefit the industry by greater market realization. Increased availability of internet would certainly result in increased availability of animated products to the greater number of customers. The growth of industry would further be accelerated by this change leading to a greater flow of more small-sized animation studios to the industry. Furthermore, the internet would ease the firm’s access to potential customers which ultimately result in greater competition for the market share. Furthermore, the larger number of consumers would also increase the demand for anime products, which would provide greater opportunity for the firm in earning larger profit margins.
Provide strategic recommendations with rationales for Janet for evolving her strategy to cope with the growth of Mayfair Flowers?
As of the fact that Mayfair has been growing with exponential market share, Janet should formulate strategies based on Mayfair’s core competencies. Mayfair has been able to make trustworthy brand image with the quality of its services, hence the quality consideration should be significant while formulating the strategies for compensating growth in operations. Furthermore, Janet should also focus on the efficiency of its business capabilities, as more efficient infrastructure would only able to sustain the growth of Mayfair. For better infrastructure, Janet should be working with her assistant and delegate more of typical work segments to him. This delegation of the task along with accountability would increase business commitment by her assistant; further Janet would be free enough to make decisions with efficient storming. Moreover, the increased number of contract can bring management’s efficiency at stake, which can be taken care of by having management’s performance scorecards (Berghe and Verweire, 2004). Janet would be able to compare the performance efficiencies of Mayfair and then the discrepancies can easily be incorporated