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  • Essay / Sources of competitive advantage/disadvantage - 1403

    Oddly enough, Focus Features and Focus Features World Wide, which for the purposes of this analysis will be grouped together, remain one of the few arthouse studios/ independent cinema owned by one of the six major studios. Ironically, this distinction also gives 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 significant financial pressure on small businesses in the market and increases risks. If the project quota remains true for Focus, it is by choice and not by financial necessity. Focus is able to utilize the extensive distribution and marketing reach of its parent company, Universal, making the performance of Focus's projects less variable while fixed costs remain low. However, this business structure also poses obstacles. Independent film studios devote considerable resources to researching or developing content of acceptable quality. This endless chase must be weighed against the strict financial goals imposed by Universal. Apparently that doesn't add up, but that's due to Focus' business model, which takes a calculated approach to releases and relies heavily on festivals to generate buzz. By releasing films in only a moderate number of theaters first, it allows Focus to use its marketing budget more efficiently. Surprisingly, Focus is able to operate almost completely separately from Universal by relying on its growing library sales and international distribution rights to cover its annual operating expenses, including overhead, development, production, acquisition, marketing and distribution. Specifically, Focus's international sales "branch" gives...... middle of paper ......believes this trend could be most detrimental to Focus in the long term. As a company that has demonstrated success in a gray area of ​​the film industry, with little real competition, it seems difficult to get more out of it. So I recommend that Focus focus its resources on content development and research, while building its reputation as a director-actor friendly studio, as Schamus intended, rather than exploiting perceived demographic demands. (nd). : ICG Magazine / Presentation of the members of the International Cinematographers Guild. Retrieved March 27, 2014 from http://www.icgmagazine.com/wordpress/2011/01/11/finding-focus/Orden, E. (nd). How Carré Flick designed his plan. The Wall Street Journal. Retrieved March 27, 2014 from http://online.wsj.com/news/articles/SB10001424052970203436904577149031020170576