Sources of Competitive Advantage and Disadvantage Essay example

Sources of Competitive Advantage and Disadvantage Essay example

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Sources of Competitive Advantage/ Disadvantage

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. This distinction, being owned by NBC Universal, 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 small to medium sized firms and proportionally increases risks. Even though the project quota remains true for Focus, it is by choice and not by financial necessity. Focus is able to utilize its parent company’s wide reaching distribution and marketing scope, making Focus’ project performance less variable while fixed costs remain competitive. 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 search must be balanced against stringent financial targets imposed by Universal. From the surface these do not mesh, but due to Focus’ business model, which takes a calculated approach to releases dates and relies heavily on festivals to generate buzz Focus is able to secure low risk, quality films . 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 ...

... middle of paper ... asset. Los Angeles Times. Retrieved March 27, 2014, from

Finding Focus. (n.d.). : ICG Magazine / Showcasing the members of the International Cinematographers Guild. Retrieved March 27, 2014, from

Orden, E. (n.d.). How le Carré Flick Devised Its Plan. The Wall Street Journal. Retrieved March 27, 2014, from

"Studio All Time Box Office Results." Studio All Time Box Office Results. Internet Movie Database, n.d. Web. 28 Apr. 2014. .

"Theatrical Market Statistics 2013." Motion Picture Association of America. MPAA, n.d. Web. 2 May 2014. .

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