Marvel has various opportunities which it should take advantage of to enhance its performance. The first opportunity is online services. Lately, investing on use of online is one of the factors that are making a big difference when it comes to competitiveness. The company should focus on online marketing and distribution to expand its market globally. The second opportunity is associated with innovation. With innovation, it means that the company would be in a position to produce products that addresses the needs of the customers, which keep on changing from time to time. The third opportunity is venturing into financial markets. For instance, the company could raise more funds through debts financing, which could vital in expanding other areas of its business. Other opportunities include takeovers, and expanding its products and services.
The company is faced by various threats within its areas of operation. However, the biggest threat is stiff competition. There are a number of companies, existing and upcoming, that are operating in the comic industry. Competition from companies such as DC Comics, Dark Horse Comics, NBC Universal, and Walt Disney has proved challenging for Marvel over the years. The other threat is associated with economic slowdown. The performance of the company largely depends on the performance of the economy. From its historical background, the company has been forced to change its business strategy as a result of lack of enough demand for their products due to economic slowdown. For instance, during recessions, the purchasing power of its customers is affected, which is eventually reflected in a decline of its sales. The other threats facing the company include price wars, and lower cost competitors or imports.
The company has strong brand equity. Therefore, it has managed to create brand loyalty among its customers over time. In addition, Marvel has a strong financial position. As such, it has the financial stamina of investing in other areas that could promote its core business objectives, unlike most of its competitors. Furthermore, the company has a cost advantage over its competitors. It has been in business for more than 70 years, and over time it has managed to build economies of scale which can allow it to produce its products in large quantities at a relatively lower cost. The other strength is being a market leader in publication of comics. Therefore, it has an edge in terms of competitiveness. Lastly, the company has ventured into other areas, especially film production, which has promoted its diversification strategies.
The company is faced with various weaknesses. For instance, its market share has been declining over time. This implies that the company is losing its influence in the market with time. The other weakness is lack of independence in within the organization. In this case, the employees are not given an opportunity to put their creativity into practice within the company. As a result, the company restrains the employees’ creative ability, which leads to poor growth and low profits. Lastly, the company has a poor supply chain, which limits its expansion strategies.
The company’s core competencies include publishing, licensing, and film production. All these segments relies on the company’s all-encompassing library of characters, which explains why their integrated and complementary nature. These core competencies were developed when the company disregarded its Toy division. The publishing section entails creation and publishing of comic books digital comics, custom comics, and trade paperbacks. Some of its prominent characters include X-Men, Spider-Man, Iron Man, Captain America, and Fantastic Four..
The distinctive competency of Marvel is being the market leader within the character-based entertainment industry, building its base on publication of comic books as well as licensing character rights. To maintain this distinctive competency, the company is always producing and popularizing new characters through comic books. Over the years, it has developed and popularized more than 5,000 characters via published comic books. Therefore, even though the competitors may try to copy its ways of operation, it is difficult to match the standards that the company has set.
Marvel vs. Walt Disney
Marvel and Walt Disney are two companies that have made significant milestones in the entertainment industry. The main difference between the two is based on their market specialization. Whereas Walt Disney specializes in animations, Marvel focuses on publication of comic books. Besides, the two companies are well-known for specific characters that have contributed to the growth of their brands over time. Nevertheless, the two are similar in the sense that both are the market leaders in their specific areas. In addition, Walt Disney bought a section of Marvel; hence they share some elements of their business models.
What to do to continue its success
For the company to continue with its current success, diversification of its products is very crucial. In this case, the company should consider investing more on research and development, which in turn could support innovation within the company. With innovation, the company will always produce unique products, hence continued brand growth. Besides, the company should consider investing more on online marketing and distribution. Lately, using online technology is making a big difference when it comes to developing competitive advantages.