There have been several attempts to explain Marvel
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BUSINESS S GM0501
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BUSINESS S GM0501
1. There have been several attempts to explain Marvel’s success via competitive strategy
but they fall flat: competitive strategy, with this specific case, neither predicts nor
explains the outcome. Why? Erika
To explain why the competitive strategy method couldn't explain Marvel's outcome, we...
there have been several attempts to explain marvel
1 there have been several attempts to explain marvel’s success via competitive strategy but they fall flat competitive strategy
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1. There have been several attempts to explain Marvel’s success via competitive strategy
but they fall flat: competitive strategy, with this specific case, neither predicts nor
explains the outcome. Why? Erika
To explain why the competitive strategy method couldn't explain Marvel's outcome, we need to
determine what factor makes Marvel successful. Looking back at Marvel's history before the
movie studio segment created, due to a lot of acquisition and mismanagement, Marvel hardly
made any innovation or created any value for its product to gain profits for the long term, which
is central in competitive strategy. The company needs to create value, differentiate and innovate
its offering to gain a competitive advantage over its competitors, which will lead to a more
significant market share and profits (Porter, 1980).
Stan-lee ideas to create superheroes to attract teenagers or young adults by creating relatable
characters from ordinary people, such as nerd turned superhero, Spiderman and alcoholic turned
superhero, Iron Man, unlocked their first blue ocean strategy to attract noncustomers. These
new characters significantly elevated Marvel's revenue, but this didn't last long as Goodman sold
Marvel to Cadence Industries, which turned Marvel management into complete mayhem. The
situation grew worse when Marvel sold repeatedly and landed in the hand of the infamous
Ronald O. Perelman, a multi-billionaire who believed strongly in value extraction to gain short
term profits (Insead,2016). Marvel's first blue ocean managed to catch significant profits but
mismanagement and short-term strategy killed it.
After several attempts to resurrect Marvel's business life, Cuneo, hired as CEO by Perlmutter,
stabilized the business financially and revived the old Marvel way to express creativity. The now-
healthier Marvel deemed that the company needed to do more. Marvel, which owns a lot of
Intellectual Property from comic characters, gained profits from the copyright and licensing it to
the third party and movie studios. But the profits Marvel got from its IP are a lot lower than the
third party gained. This situation led Marvel to develop its movie studio (Marvel Studio) and
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