First and Last Name: Hailey Jordan

Section: SP4
Major: Accounting

GB410 “Hollywood Goes Global” Assignment

Please use this document to answer the questions, and it should not exceed 2-4 pages single-
spaced (excluding this cover page), but, in addition, you can prepare and attach your own
exhibits based on case data to support the analysis. You can make outside research or updates,
if you need.

1. How has the global environment changed for US (Hollywood) movie studios since 2000?
Explain (10 points)
Hollywood is unmatched in the movie industry because it has various competitive advantages

like worldwide distribution channels, creative innovators, and thousands of investors all over

the world. Although Hollywood has seen great success in the past, today it faces some

challenges due to globalization. Before 2000, Hollywood focused on entertaining a domestic

audience and earning revenue solely from the US national market. However, throughout the

2000s, Hollywood gained an international audience and even today, the majority of Hollywood

revenue is generated outside the US. Due to increased international viewers, Hollywood has

begun to produce movies for international markets by changing characters from one

background to another, using a variety of ethnic actors, and translating movies into various

languages. Globalization has changed Hollywood’s producer’s intentions by focusing more on

international entertainment, rather than national entertainment.

2. Apply the integration-responsiveness framework to describe which global strategy

Hollywood studios followed originally, and how their strategic positioning has changed
over time. Explain how and why? (20 points)
At first, Hollywood would simply translate films to different languages, and continue to show

the same film to audiences all over the world. Today, films are being created with the same plot,

but the films have different versions so that they are more suited for a specific international

audience. Hollywood has begun to create different versions of films due to international

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 governments restricting what can and cannot be shown to the “domestic” audience. At first,

Hollywood was applying an export strategy and focused on domestic entertainment and

operations. Hollywood would create movies only for domestic audiences, even though

Hollywood movie's popularity internationally was growing. As globalization grew, Hollywood

began to apply a multidomestic strategy where Hollywood would customize its products based

on the target audience it was attempting to sell to. For example, as Hollywood grew in

popularity in China, Hollywood began producing movies like Kung Fu Panda, and The Karate Kid

to appeal to that specific target market.

3. Given the economics of the now global movie industry, what are the strategic
implications for Hollywood studios? What are some opportunities, and what are some
threats? How should Hollywood movie studios take advantage of these opportunities,
while mitigating the threats? (20 points)
The international market accounts for over 50% of Hollywood’s continued success, however,

Hollywood is beginning to feel more and more pressure from international markets. Because

movies like Avatar and Transformers produced more international revenue than national

revenue, Hollywood needs to adapt to an international market and focus on the bigger picture,

rather than just the domestic one. The international success is a great opportunity for

Hollywood to adapt their products, and introduce new international producers, creators, and

actors to their chain. This opportunity does have potential drawbacks (negative threats) too.

One negative threat is the threat of offending certain audience members when

creating/producing new internationally targeted movies. Another threat is increased piracy.

Piracy is already such a pressing and global issue that the international expansion of production

will only make piracy a deeper issue. The last threat is the increasing issue of government

interference and government editing of films before letting international viewers see the

original content.

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 4. When commenting on the disappointing performance of The Great Wall, movie
executives continue to highlight the huge opportunities in China and emphasize that
they will soon find the right formula to make movies that are attractive to both American
and Chinese audiences alike. Do you agree with this statement? Why or why not? (10
points)
There is a huge cultural difference between the United States and China, and the Americans

make movies and how Chinese consume these movies. It is a difficult task for Hollywood to

create movies that will be enjoyed by Chinese audience members and to accurately portray

history that is not their own. However, I do believe (and agree) that Hollywood is started to

appeal to a bigger audience. The international revenue seen in Hollywood movies proves that

Hollywood can capture the international revenue and therefore provide entertainment. China’s

government does restrict certain content from its general population, however, I believe that

globalization is helping Hollywood reach further and more diverse audiences.

5. Assuming that movie studios will be able to create breakthrough hits that are attractive
for both Eastern and Western audiences, what type of global strategy would that entail?
What are some benefits of this type of global positioning? What are some of its risks?
Why is this type of global positioning so hard to achieve? (20 points)
This is a global standardization strategy, and Hollywood wants to produce and create movies

that an international audience will enjoy and appreciate. The benefits of using this strategy

include more profit, a larger customer base, and the potential lower labor costs and production

costs (if using international actors, and film sites). One of the risks to this positioning is

attempting to figure out pricing on an international scale. Hollywood also faces the difficulty of

pricing its products because different countries have different inflation and exchange rates. Its

financial department most likely faces hardships setting prices for its products. Finally, this type

of positioning is hard to achieve because it's attempting to adapt to every market and reach

different target audiences all over the world. It is attempting to provide entertainment for a very

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 diverse audience and therefore cannot focus on specifics and must stay general when

creating/producing content.

6. What can movie producers do to ensure that future Chinese- American co-productions
are more successful? Explain. (20 points)
For Hollywood movies to be successful in both the American and Chinese markets is to focus on

common goals or challenges that both societies face. Rather than bring up controversial issues

that may lead to future issues and a decrease in sales, producers should be future-oriented and

adopt themes that both societies have common goals for. For example, focusing on increased

education, bettering the environment, not doing wrong by others, romance, etc. Themes that

can be agreed upon in multiple cultures will be successful rather than playing with fire, like a

controversial topic, which may lead to decreased sales. Finally, as Hollywood continues to

develop its international presence, it should attempt to give a neutral position on controversial

issues so that governments will not restrict or change content.

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