Академический Документы
Профессиональный Документы
Культура Документы
Introduction? (the one you wrote in the report should be entitled company background)
Evaluation??(after discussion part)>> pls discuss where are they going? Strategic direction, etc..
The report should be critical in its analysis/discussion of strategic issues and stratic Formatted: Highlight
options/directions of the company. Provide evidences and supporting strategic management
theories in your discussion and evaluation. What are the auditing models you used like PESTEL,
Porter 5, VRIO/VRIN, core capabilities, strategy clock, etc? )please recheck the structure format in
lecture notes)
1. What are the major and minor strategic issues in the case?
2. What strategic theories or methods of analysis can be applied to these
issues?
3. How do environmental factors influence this situation?
4. What information is missing?
5. Are technological factors important?
6. Are market factors important?
7. Are individual behaviour factors an issue?
8. Are group behaviour factors an issue?
9. Who or what appears to be most responsible for the situation experienced by
the organisation and for driving change?
10. What are the limitations to strategic change
11. Are the principals in the case assuming responsibility for strategic
management?
12. What are the major strategic strengths? Weaknesses?
13. What skills do the case principals exhibit? What is needed?
14. Can short- and long-range recommendations be made in relation to the
strategic issues?
1. In recent years, comic books industry has undergone corporate level strategic changes Formatted: Normal, No bullets or numbering
as the two industry leaders DC comic and Marvel have decided to merge with their giant
production and distribution partners Warner brothers and Disney respectively (Kellner 2010).
The rapid development media transformation of comic industry to movies and digital comic
editions has changed the scenario of the whole industry globally. This paper addressed
important strategic issues and performed strategic audit of one of the leading comic books
publishers, DC comics. This paper evaluate the basic strategic issues and recommends Formatted: Font: Times New Roman, 12 pt, Highlight
Formatted: Highlight
strategies to the company to overcome these challenges. Formatted: Font: 12 pt
DC Entertainment, initially created as National Allied Publications in 1934 and best known
as DC Comics is the second largest publishers of comic books. The company owns 36%
percent share in the global comics market and is best known for the superheroes Superman,
Batman, and Wonder woman (DC website n.d). The company is involved in publishing of Formatted: Highlight
comic books, licensing the rights of the use of characters in movies, cartoons, toys, and other
branded content. The company is now acting as a division of Warner Brother’s entertainment
universe and producing movies, comics, and video games of the famous superheroes (Wyatt Formatted: Highlight
2009). Apart from the TV and film operations, DC publishes around 95 monthly comics with
more than 1000 characters. The famous comic imprints are Vertigo and the MAD magazine
(DC website n.d). The comnic segment of the company is involved in creation of comic Formatted: Highlight
books, custom comics, trade paperbacks, and digital comics. Ion the other hand, the segment
involved in licensing is responsible for the licensing, brand management, and promotion, for
all DC Comics characters globally. The third important segment is film production to produce
Businesses normally use following strategic planning techniques to achieve long and short
term objectives.
Internal Analysis vision and mission statements, long and short term goals, corporate
structure and values
External PESTEL, SWOT, and Porters five forces analyses
environment
Strategic planning TWOS, GAP, Porter’s value chain, BCG and Ansoff matrix.
analysis
Core competencies Resources and capabilities to create competitive advantage, a long
term capability that is not matched by competitors.
Comics and Warner Brothers, producer and distributers of all DC comics’ movies. After
merger, a new division is launched by Warner Brothers under the name of DC entertainment
Inc. with a mission to expand DC brand to new limits. The mission statement defined by DC
Entertainment as strategic integration of, “the DC business, brand, and characters deeply into
Warner Bros. Entertainment and all its content and distribution businesses,” (D Comics
Website N.D). The major areas of operation defined in the mission are feature films, videos/
DVD, role-playing toys, branded products, video games, television programs, and digital/
print promotions.
The main strategic objective of DC Comics, acting as a division of Warner Brothers are:
3. To modify,. Relaunch, and develop Conic characters by unsing new media platdforms
1.42.3 Major and Minor StrategStrategicic issues: idnentify the major and Formatted: Outline numbered + Level: 2 + Numbering Style:
1, 2, 3, … + Start at: 3 + Alignment: Left + Aligned at: 0.5"
+ Indent at: 0.75"
minor strategic issues
The major strategic issue of the company is to gain the leading status in comic industry.
Currently, though DC has regained audience attention after successful Dark Knight Trilogy
and Superman flick of 2013, Man of Steel, the company is still struggling to gain prominent
status as the rival Marvel’s simultaneous success with Ironman and Avengers franchises since
2010 (Stuller, 2010). The Ccompany has too many expectations from upcoming Batman v.
Superman: Dawn of Justice that will lead into the sequels of Wonder Woman films and
The other minor issue with DC isissues with DC are the production of less characters based Formatted: Highlight
movies with more unique identities. The idea of Warner Brothers to bring in more
screenwriters for a single movie is also a point objectionable for critics and the issues faced
with the story line and execution of ideas (Hassler-Forest 2011). Another important challenge
is appropriate Also, going alongcasting that suits with the characters and their story in
comics and transferring the same image to the movies is a challenging taskimportant to gain
the attention of to revive the same comic fansaudience. Furthermore, achievement of cross-
promotional activities success and and get a a transformational growth from print to digital
comics are some important strategic issues facing by DG. in the cross-sectional audience.
1.52.4 Corporate Governance Formatted: Indent: Hanging: 0.5", Outline numbered +
Level: 2 + Numbering Style: 1, 2, 3, … + Start at: 3 +
Alignment: Left + Aligned at: 0.5" + Indent at: 0.75"
The merger of DC Comics with Warner Brothers has brought major corporate level changes
in governance structure. The president and lead publisher Paul Levitz since 2002 left the
executive post and joined as lead editor and consultant to devote thirty years of experience to
the ne DC Entertainment (DiPaolo 2011). The new chief executive Diane Nelson has a
successful track record of the president at Warner Premiers and the successful series of Harry
Potter Franchise strategic marketing, content management, and production. The changes in
governance stricture are quite visible as the successful return of Superman flicks and the
transformational comics launch as Convergence, in June 20154 with the promise to launch 24
2.3 Internal Audit- Strengths and Weaknesses Formatted: Outline numbered + Level: 1 + Numbering Style:
1, 2, 3, … + Start at: 2 + Alignment: Left + Aligned at: 0" +
The internal audit is based on the analysis of strengths and weaknesses of the company. Indent at: 0.25"
According to Porter (1980), the competitive strength of the company lies in its competitive
advantage against the rival companies. Therefore, companies have to have long tern term
make sure that your analysis of the strengths and weaknesses of the company is consistent with the
The creation of more than 5000 relevant characters, DC Comics has a success rate of]
portraying real situations in real life settings/ the old age readers have a nostalgic association
with conic characters and have been attached with their success and failures. The attraction of
new audience has been generating through animations, cartoons, and videos of the famous
comic characters. The digital comics released in 20154 also gaive a transformational revival
to the company with enhanced imagery and new story lines of established characters .(Rogers
2014). The series of successful comic characters with global significance, more than 95 Formatted: Highlight
existing comic book titles, and a series of superman, batman successful movies franchises
have shown the consistent brand image and customers demand satisfaction (Greenberger
2009). ability ]to meet the demands o0f the target market since 1939 is one of the greatest
2. Strong brand awareness Formatted: Font: Times New Roman, 12 pt, Bold
characters like Batman, Superman, Wonder women, Flash, Green Lantern have defined the
generations’ long struggles and become iconic version of DC brand. The main strengths of
DC lies in long term brand equity, strong and recognizable products and characters give
successful movies franchises like Superman, Batman, and Green Lantern. According to Serra,
and ReVelle (1994), companies in duopolistic competition markets like comic sector face
direct competition and companies follow competitive marketing strategies. DC comics and
Marvel always devise competitive strategies based on the competitors’ actions. Having only
one major competitor is also an advantage of having focused marketing strategies. A loyal
3. Strong vertical integration explain what vertical integration is/provide evidences Formatted: Normal, No bullets or numbering
The merger decision with Warner Brothers has given DC a large platform to produce and
distribute their own films., success of The Man of Steel (2013) flick is an example. The Formatted: Highlight
Formatted: Highlight
increase of brand recognition is also a result of this merger. DC Comics is still the cash cow
of the franchise DC entertainment and successfully launching new comics of established and
old characters like “New 52” series enormous success in 210012 has forced Marvel to
launched similar version as “ Marvel NOW”(Roger 2014) . In DC, the central editorial board Formatted: Highlight
has a strict control with greater flexibility to the innovation and quality assurance.
2.23.2 Weaknesses
The policy of DC against marries married couples like that of Reed and Sue Richards in
Fantastic Four of Marvel, has brought a serious question to the emotional standing and
personal relationship of the comic characters (Tye 2012). The family orientation and Formatted: Highlight
sexuality absence in DC characters create a barrier with the audience and make them weak as
compared to the string strong brand affiliations of Marvel characters that have normal
emotional and family lives as well as Kotler (2012) and Keller and Keller (2012) emphasis on Formatted: Highlight
the high emotional association of consumers with the brands if the brands depict their own
personality. DC favoured this point as marriage close the path to other romantic relationships
The mismanagement of stakeholders like writers, employees, and audience has been a great
weakness of the company. The disputes with former employees, interference of editorial team
in writers’ work, and last minute changes craterreated dissatisfaction oin writers’ teams Formatted: Highlight
(Hayes, 2012). The problematic moves in last couple of years have made the DC fans more
vulnerable and dissatisfied. Disgruntled writers and unhappy readers of Superman and
Batman due to mismanagement of their story lines are the recent example. Also, the sudden
departure of Batwoman creative team comprised of Williams III and Haden was a serious
A cCompared to the close rival, DC has a poorly managed licensing strategy. Rather that than
exploiting the potential of strong characters through licensed TV and movies productions
through other production houses, the company is committed with a single production house
of Warner brothers. Also, the cross sales is not observed through the use of multiple Commented [AR1]: source
superheroes in a venture like that of Avengers franchise from Marvel. The licensed partners
in toys, videos, and promotional producrs have faced high pressure due to the centralized and
strict control of editorial boards of DC. The absence of clear licensing rules and exposure to
less media opportunities and promotional content absence have limited the profit margins and
DC comics is has not been utilizing the full potential of social media and digital advertising.
The company website and Facebook pages are dormant and lack of interaction with fans and
viewers. The utilization of social media in right directions can create enormous opportunities
for the upcoming ventures of the company (Greenberger 2009). The Launch of digital comics
in 2015 was an instant success that leads to more infusion of digital media strategies in
company’s marketing and advertising planning. Also, the lack of customer relationship
management can also be improved through effective use of the dormant Facebook page and
twitter groups.
2. Increase reach to Collectors of comic books
There are two main groups of comic readers, boys and girls mainly of age group 4 to 13
years, and the group of 18 to 44 years of avid readers. Boys and males are the major target
market of DC Comics from the beginning due to masculine appeal and life style of the
characters. Therefore, publishing of more collectible items and limited editions of Comic
books can help to reach the influential groups of comic books collectors (Newman 2009).
The printing of some old and the first editions from the past will create a nostalgic ripple in
the comic readers market. Also, promotions should be extended to more franchised brand
content product like costumes, accessories, and books of famous character will also help the
Company is not investing enough in marketing budgets as compared to the close rival
Marvel. The allocation of more promotional budgets to consumer products like home Commented [AR3]: evidence?
accessories, personal accessories and clothing involving Tee-shirts especially to girls target
market as they are ignored by DC in past. The targeting of adults and female demographics
will increase brand associations. The campaigns with the help of parents associations and Commented [AR4]: how? support with theory and evidence
other comics regulatory bodies will facilitate the image building of the company in families.
3.2 Threats
With the advancements in IT and internet access to the comic books, the threats of online
piracy are also increased. Copy right infringement, non licensed products, and illegal cable
transmissions give losses in current years (. The patented properties of DC are also on the Commented [AR5]: source
verge of internet hackers and maintenance of copyright protection is getting expensive and
complex day by day. The whole comic industry is under this threat and suffering from huge
losses especially outside USA. Provde data also Commented [AR6]: source
2. Competition
DC Comics faced intense competition from the long time rival Marvel/Disney Inc. The
recent success stories of Marvel and slow rate of successful movies buy DC has created
problems for the audience (Rogers 2014). The competition is now extended beyond the Formatted: Highlight
products, comic books and products, and the fans of both companies are facing direct
pressure on release of any new venture. The audience needs more careful treatment, strong
story lines and connectivity in books and movies, focused publications with more intense
graphics and strong content support. Also, intangible offers like shopper discounts, reality
shows, parks entries, and other family fun time offers can help the company to stay connected
with loyal audience and avid readers. Integration of DC sites and more focused content with
more visitors’ interaction can also help the company to meet the competition. The
situation for DC. The comics market has undergone much transformation in past 75 years
since 1934 (Wyatt 2009; Gustines 2005), the impacts of wars, terrorism, social movements, Formatted: Highlight
Formatted: Highlight
immigrations, migrations, and epidemics of the world are shown in the story lines that helped
DC characters to express the gratitude of the masses and show emotions like patriotism,
bravery, honesty. The DC heroes have traditional pre history powers Gods who can save the
humanity from any distressed situation. On the other hand, the close rival Marvel has created
super heroes open to intimate relationships, with feelings and family oriented that ,make
Marvel characters more likeable and they transformed from one generation to the other
The tightly controlled corporate structure of DC and effective cross promotional campaigns
from programs like Justice League has given Superman an advantage over Marvel Captain
America with a universal identity. Marvel characters are dominated by their US identity, but
universally accepted iconic image of all most of its characters (Wyatt 2009). Formatted: Highlight
In order to retrieves from the losses of box office failures due to poor story
transformation and weak characterisation in the movies like Green Lantern, and Catwoman,
DC has revived the image through the release of Batman Begins (Kellner 2010), Change of
the logo design in 2005 and a subsequent change is observed in 2102 with DC peel Log. In
order to reconnect with the older bases of more aware readers, Infinite Crisis was launched
(Gustines 2005). Second, both the Infinite Crisis series and the 2005 Batman Begins film
adaptation worked together to re-connect with comic readers and film audiences by
emphasizing the darker, more serious side of DC Comics’ heroes (Tye 2012). Formatted: Highlight
The Financing deal of DC with Warner Brothers has helped it to launch two successful
ventures Superman Returns and Watchmen (Stuller, 2011), but the over whelming releases of
thee ventures had failed to keep a striking balance between the Promotions and the execution
of the projects. Both movies have failed to show the impulsive dram, original story
connections, and failed to captivate the audience. The company has decided a major
corporate change in its leadership by deciding a merger with Warner Brothers. Though the
decision was merely also an inspiration from the merger of Marvel and Disney, but this major
corporate change has done a good job for the retrieval of brand image for DC. DC has
produced a large number of comic adaptations after this merger but this merger has raised
serious questions related to the ideological and artistic directions of DC as the deal was
Though the strategic c directions of DC entertainment went wrong in making less famous
characters to big screens like Catwoman and Green Lantern (Tye 2012), but the decision like
Superman revival through Man of Steel and new series Convergence in 2015 have shown an
overhaul in the corporate strategy of the company. Now the company is focused on the
launch of digital comics, more adaptations to universally acclaimed characters like Batman
and Superman, and planning to revive the series Justice League in coming years.
Evaluation??
Despite the attempts of DC in past five years with success stories, company is still on the
number two position in the industry that shows a further need of progress.
The above analysis recommended that the company need s more consistent project teams
with less interference of editorial board in last minute changes. The dissatisfaction and
departure of writers and creators need to be stopped through more congenial and straight
Though convergence series has created an upheaval with an announcement of 24 more comic
series by DC, but this long term strategy needs more commitment and dependence on quality
staff.
Also, as the company headquarter has moved from New York to California, more staff hiring
original story lines, and strong characterization with good casting can create a sequel of
successful movies.
DiPaolo, M., 2011, War Politics and Superheroes: Ethics and Propaganda in Comics and
Greenberger, R., 2009, How Superman REALLY Helped America Win World War
win-world-war-two/>.
Gustines, G. G., 2005, Even Superheroes can use some Buffing of the Brand. New York
Times.
Hayes, J., 2012. Goddess in a Cape: Feminine divine as comic book superhero. Diss. Iowa
State U.
Hassler-Forest, D., 2011. From Flying Man to Falling Man: 9/11 Discourse in Superman
Kellner, D. 2010, Cinema Wars: Hollywood Film and Politics in the Bush-Cheney Era.
Oxford: Wiley-Blackwell,
Newman, K., 2009, Reviews: Films: ‘Watchmen, Sight and Sound 19.5: 81.
Stanley, T.L. BK, 7-Eleven Adding Bulk to Hulk Redux. Brandweek 20 Apr. 2008. 10 Sept.
012<http://web.archive.org/web/20080421195456/http://www.brandweek.com/bw/ne
ws/recent_display.jsp?vnu_content_id=1003791488>
Stuller, J, K. 2010, The Best-Dressed Women in Gotham City. Gotham City 14 Miles: 14
Essays on Why the 1960s Batman TV Series Matters. Ed. Jim Beard. Edwardsville:
Tye, L., 2012, Superman: The High-Flying History of America’s Most Enduring Hero. New
Wyatt, E., 2009 DC Comics Revamped Under a New President. New York Times 10: B5.
Rogers, V., 2014, What You Need to Know About DC COMICS Headed Into 2015, accessed Formatted: Font: (Default) Times New Roman, 12 pt, Font
color: Auto, English (United Kingdom)
on Octobar 23, 2015, from http://www.newsarama.com/23109-what-you-need-to- Formatted: Font: (Default) Times New Roman, 12 pt, Font
color: Auto, English (United Kingdom)
Formatted: Font: Times New Roman, 12 pt, Italic
know-about-dc-comics-headed-into-2015.html
Formatted: Font: Times New Roman, 12 pt
Formatted: Normal, Justified, Indent: Left: 0", Hanging:
0.5", Line spacing: Double, Pattern: Clear
Serra, D. and ReVelle, C. (1994), MARKET CAPTURE BY TWO COMPETITORS: THE
Formatted: Font: Times New Roman, 12 pt
PREEMPTIVE LOCATION PROBLEM. Journal of Regional Science, 34: 549–561. Formatted: Font: (Default) Times New Roman, 12 pt
Formatted: Space After: 0 pt, Pattern: Clear (White)
doi: 10.1111/j.1467-9787.1994.tb00882.x
CBR (2013), Williams, Blackman Leave "Batwoman," Cite Editorial Interference accessed Formatted: Font color: Auto, Pattern: Clear
Formatted: Line spacing: 1.5 lines
from http://www.comicbookresources.com/?page=article&id=47715
Field Code Changed
Formatted: Hyperlink, Font: Calibri, 11 pt, Font color: Auto,
Pattern: Clear
Formatted: Font color: Auto, Pattern: Clear
Appendix A- SWOT Analysis Formatted: Heading 2, Left, Indent: Left: 0", First line: 0",
Line spacing: single
Formatted: Space After: 0 pt, Pattern: Clear (White)
Formatted: Font: 10 pt
Formatted: Line spacing: 1.5 lines
Strengths Weaknesses
Formatted Table
Strong brand image Limited comics distribution Formatted: Font: 10 pt, Bold
Relevant characters creation Poor characters and stakeholders Formatted: Font: 10 pt
Launch of more digital comivs and new Cut throat direct competition with Marvel Formatted: Font: 10 pt
Formatted: Font: 10 pt, Not Bold
characters movis franchises Maturing characters
Formatted: Font: 10 pt
Syromng licensuinf contacts with Changing auduience demands
Formatted: Line spacing: 1.5 lines
garments, persobnal accessaries, and Use of new technology in comics Formatted: Font: 10 pt, Bold
other brand endored products changing trends in media Formatted: Line spacing: 1.5 lines
New movies projects of Superman and Formatted: Font: 10 pt
Batman Formatted: Font: Times New Roman, 10 pt, Font color: Black
Formation of Characters universe like Formatted: List Paragraph, Line spacing: 1.5 lines, Bulleted
Justice League movies + Level: 1 + Aligned at: 0.25" + Indent at: 0.5"
Formatted: Font: Not Bold
Formatted: List Paragraph, Line spacing: 1.5 lines, Bulleted
+ Level: 1 + Aligned at: 0.25" + Indent at: 0.5"
Formatted: Font: Times New Roman, 10 pt, Font color: Black
Formatted: Font: 10 pt
Formatted: Font: 10 pt, Not Bold
Formatted: Space After: 0 pt, Pattern: Clear (White)
Appendix B- Porter Five Forces Analysis Formatted: Heading 2, Left, Indent: Left: 0", First line: 0",
Line spacing: single
Threat of Medium- Saturation of superheroes like Superman and Batman can make new companies to
new enter into the market. Video streaming on digital media and online comics distribution has
entrants lowered down the publishing costs. Therefore, more companies can enter in this business.
Bargaining High- more alternatives are available for audience due to multiple media advancements. TV,
Power of movies, social media, digital comics, mobile interactive programs divide the audience
Buyers concentration. Now paper based comics fans life style trends and choices are also changing
Bargaining Low- Toys, characters souvenirs, and other endorsed products manufacturers have less Formatted Table
Power of bargaining powers as their sales depends on licensing agreement with DC comics and other
Suppliers publishers. For e.g. Scott and Sons (SNS) have the toys licensing from both DC and Marvel.
Substitutes High- success of new comic characters from other company, videos and TV programs of
other comics, free mobile applications and pirated games, movies, and other non licensed
products are available at low prices. Movies of same characters are also a substitute of
comic books.
Rivalry High- rivalry from direct competition of Marvel entertainment Inc., large group with more
Amongst funding from Disney, pose a serious threat due to recent successful franchises of Avengers
Competitors and Ironman since 2010.