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The arvel way:restoring a blue
ocean
Brittany Alling, Kierstin Anderson, Chandni
Antala, Hilton Blalock
Marvel’s history timeline1939
2009
Founded
1940s
1954
Comic
book
industry
boomed
Comic books
linked to
teenage
pregnancy &
homosexuality?
Sales
dropped, only
DC & Marvel
left
Targeted
college
students
1968
Sold to New
World
Entertainment
Poor
management,
demotivated
staff → fewer
profits
1996
2004
Created
Marvel
Studios
Disney
purchases
Marvel
Repaired
corporate
culture
TV, video
games,
amusement
parks
1998
Bought
cheaply by
ToyBiz
Filed for
bankruptcy
Different visions & strategies
× 1940s: Create as many titles as possible to grab customers’ attention
× Copied competitors, little original work
× Post-1954: Had to change strategy → original content aimed at older
demographic (college students)
× 1968: Pitted employees against each other, main cartoonist quit
× 2004: “Added multiples to the valuation of the business” (9)
× Movies, TV, video games, theme parks
× 2009: Post-Disney purchase → competition is “irrelevant,” everyone is in the
business together
Marvel needed to find a way
to succeed despite previous
failures in management,
changing visions, and
underperforming
product lines.
Alternative solutions
After purchase from Toy Biz, in 1998, Marvel had five sources of revenue and
choices of what to do with them:
Comic Books Invest/ Keep Do not invest/ Cut
Trading Cards Invest/ Keep Do not invest/ Cut
Toys Invest/ Keep Do not invest/ Cut
Character Licensing Invest/ Keep Do not invest/ Cut
Marvel Studios Invest/ Keep Do not invest/ Cut
× Comic book intangibles worth $127.7 million
× IP, characters, storylines, brand, goodwill
× “The Great Comics Crash of 1996” (TV Tropes)
× Collectors’ items mass-produced, lost value
× Market collapsed
Comic books
× Single-source distribution system in the 90’s→
comic book stores closed
× 9,400 → 4,500
Trading cards
× SkyBox and Fleer +
Panini Sticker
Company
× Sales driven by
collectors
× Segment is not
profitable in and of
itself
toys
× Generates most of Marvel’s
revenue
× Revenue expected to increase
with movie deals
× Low-margin business
× 2001: Lost $30 million when Star
Wars toys were introduced by
Hasbro
× Very risky
× Easily bumped by
competition
Character licensing
× Marvel had history of licensing
its characters
× Required little investment
× Licensing business worth
$401.1 million
× 1998: received $4.9 mil in
licensing fees
Marvel studios
× Not an actual movie studio
× Only licensed Marvel characters to motion picture studios
× Increased Marvel character demand
× Provided capital during bankruptcy + increased licensing royalties
× Sony’s Spider-Man → grossed $2.5 billion
× FOX’s X-Men → grossed $5.5 billion (Wikipedia)
× If they choose to invest, Marvel can develop actual studios and
produce own movies
recommended strategy
Comic Books
cut
Toys
CUT
Trading Cards
cut
Character
Licensing
keep
Marvel Studios
keep
recommended strategy
× Stop selling comic books, trading cards, toys
× Comic books/ trading cards purchased by collectors
× As they age, will become more valuable
× Toys too risky for a company that declared bankruptcy
× Keep character licensing
× Marvel continues to hold right to its characters
× License characters to toy companies
× Invest in Marvel Studios
× Large source of capital
× Purchase own studios and make movies
× Fix management problems
Intermediate
× Revenue from box office for each
movie
× Sales on licensed toys
× Sales and demand on liquidated
inventory (comic books, trading
cards)
Tracking metrics
Conclusive
× Return on Investment in Marvel
Studios
× Long-term revenue from Marvel
movies
× Long-term change in viewership
on Marvel movies
× Long-term change in sales for
licensed toys
× Market share for movies/ licensed
toys
Thank
Any questions?
Works cited
“The Great Comics Crash of 1996 / Useful Notes.” TV Tropes, TV Tropes,
tvtropes.org/pmwiki/pmwiki.php/UsefulNotes/TheGreatComicsCrashOf1996.
“X-Men (Film Series).” Wikipedia, Wikimedia Foundation, 11 June 2018,
en.wikipedia.org/wiki/X-Men_(film_series).

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The Marvel Way: Restoring the Blue Ocean

  • 1. The arvel way:restoring a blue ocean Brittany Alling, Kierstin Anderson, Chandni Antala, Hilton Blalock
  • 2. Marvel’s history timeline1939 2009 Founded 1940s 1954 Comic book industry boomed Comic books linked to teenage pregnancy & homosexuality? Sales dropped, only DC & Marvel left Targeted college students 1968 Sold to New World Entertainment Poor management, demotivated staff → fewer profits 1996 2004 Created Marvel Studios Disney purchases Marvel Repaired corporate culture TV, video games, amusement parks 1998 Bought cheaply by ToyBiz Filed for bankruptcy
  • 3. Different visions & strategies × 1940s: Create as many titles as possible to grab customers’ attention × Copied competitors, little original work × Post-1954: Had to change strategy → original content aimed at older demographic (college students) × 1968: Pitted employees against each other, main cartoonist quit × 2004: “Added multiples to the valuation of the business” (9) × Movies, TV, video games, theme parks × 2009: Post-Disney purchase → competition is “irrelevant,” everyone is in the business together
  • 4. Marvel needed to find a way to succeed despite previous failures in management, changing visions, and underperforming product lines.
  • 5. Alternative solutions After purchase from Toy Biz, in 1998, Marvel had five sources of revenue and choices of what to do with them: Comic Books Invest/ Keep Do not invest/ Cut Trading Cards Invest/ Keep Do not invest/ Cut Toys Invest/ Keep Do not invest/ Cut Character Licensing Invest/ Keep Do not invest/ Cut Marvel Studios Invest/ Keep Do not invest/ Cut
  • 6. × Comic book intangibles worth $127.7 million × IP, characters, storylines, brand, goodwill × “The Great Comics Crash of 1996” (TV Tropes) × Collectors’ items mass-produced, lost value × Market collapsed Comic books × Single-source distribution system in the 90’s→ comic book stores closed × 9,400 → 4,500
  • 7. Trading cards × SkyBox and Fleer + Panini Sticker Company × Sales driven by collectors × Segment is not profitable in and of itself
  • 8. toys × Generates most of Marvel’s revenue × Revenue expected to increase with movie deals × Low-margin business × 2001: Lost $30 million when Star Wars toys were introduced by Hasbro × Very risky × Easily bumped by competition
  • 9. Character licensing × Marvel had history of licensing its characters × Required little investment × Licensing business worth $401.1 million × 1998: received $4.9 mil in licensing fees
  • 10. Marvel studios × Not an actual movie studio × Only licensed Marvel characters to motion picture studios × Increased Marvel character demand × Provided capital during bankruptcy + increased licensing royalties × Sony’s Spider-Man → grossed $2.5 billion × FOX’s X-Men → grossed $5.5 billion (Wikipedia) × If they choose to invest, Marvel can develop actual studios and produce own movies
  • 11. recommended strategy Comic Books cut Toys CUT Trading Cards cut Character Licensing keep Marvel Studios keep
  • 12. recommended strategy × Stop selling comic books, trading cards, toys × Comic books/ trading cards purchased by collectors × As they age, will become more valuable × Toys too risky for a company that declared bankruptcy × Keep character licensing × Marvel continues to hold right to its characters × License characters to toy companies × Invest in Marvel Studios × Large source of capital × Purchase own studios and make movies × Fix management problems
  • 13. Intermediate × Revenue from box office for each movie × Sales on licensed toys × Sales and demand on liquidated inventory (comic books, trading cards) Tracking metrics Conclusive × Return on Investment in Marvel Studios × Long-term revenue from Marvel movies × Long-term change in viewership on Marvel movies × Long-term change in sales for licensed toys × Market share for movies/ licensed toys
  • 15. Works cited “The Great Comics Crash of 1996 / Useful Notes.” TV Tropes, TV Tropes, tvtropes.org/pmwiki/pmwiki.php/UsefulNotes/TheGreatComicsCrashOf1996. “X-Men (Film Series).” Wikipedia, Wikimedia Foundation, 11 June 2018, en.wikipedia.org/wiki/X-Men_(film_series).