Sources of Competitive Advantage/Disadvantage
comparative Essay
1403 words
Oddly enough, Focus Features and Focus Features World Wide, which for the purposes of this analysis will be lumped together, remains one of the few art house/independent movie studios that is owned by one of the major six studios. Ironically, this distinction also lends Focus Features a distinct advantage. Typically, the independent film industry requires a studio to distribute/produce a certain number of projects in order to fund initial overhead or licensing costs. This puts a significant financial strain on the smaller market firms and increases risks. While, the project quota remains true for Focus, it is by choice and not by financial necessity. Focus is able to utilize its parent company, Universal’s wide reaching distributive and marketing scope, making Focus’ project performance less variable while fixed costs remain low. However, this corporate structure poses obstacles as well. Independent film studios put a considerable amount of resources into finding or developing content of acceptable quality. This never ending hunt must be balanced against stringent financial targets imposed by Universal. Seemingly, these do not mesh, but due to Focus’ business model, which takes a calculated approach to releases and relies heavily on festivals to generate buzz. By releasing movies in only a moderate number of theaters first, it allows Focus to use their budget for marketing more effectively. Surprisingly, Focus is able to operate almost completely separately from Universal relying on its growing library sales, and international distribution rights to cover its annual operating expenses, including overhead, development, production, acquisition, marketing and distribution costs. More specifically, Focus’ international sales “arm” gi...
... middle of paper ...
...elieve this trend could be the most damaging to Focus in the long term. As a firm that has demonstrated its success in a grey area of the film industry, with little real competition it seems damming to squeeze more out of it. I therefore recommend, Focus concentrate its resources on developing and finding content, plus bolstering its reputation as a director/actor friendly studio as Schamus intended, rather than exploiting perceived demographic demands.
Works Cited
Finding Focus. (n.d.). : ICG Magazine / Showcasing the members of the International Cinematographers Guild. Retrieved March 27, 2014, from http://www.icgmagazine.com/wordpress/2011/01/11/finding-focus/
Orden, E. (n.d.). How le Carré Flick Devised Its Plan. The Wall Street Journal. Retrieved March 27, 2014, from http://online.wsj.com/news/articles/SB10001424052970203436904577149031020170576
In this essay, the author
- Explains that focus features is one of the few art house/independent movie studios that is owned by a major six studio. the project quota remains true for focus, but it is by choice and not by financial necessity.
- Explains that focus is a division of universal pictures with limited financial data. focus has been consistently profitable and occasionally hits home runs with ang lee's 2005 drama "brokeback mountain" and the animated feature "coraline."
- Explains that focus features is constantly developing new and innovative ways to stay ahead of other art house studios, taking advantage of their relatively low overhead and relying on marketing and advertising strategies.
- Explains that focus' international sales "arm" gives it a distinct advantage because it capitalizes more on international revenue where the market is growing, unlike the domestic market which has remained stagnant.
- Explains that the independent film industry is fragmented. focus relies on the reputation and influence of its parent company universal pictures to secure low-budget deals by itself within the industry.
- Recommends focus concentrate its resources on developing and finding content, plus bolstering its reputation as a director/actor friendly studio.
- Narrates how le carré flick devised its plan. the wall street journal.
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