International Management: New Moon's Expansion Strategy in India

This report analyzes New Moon, a London-based film production company, and its strategic plan to expand into the Indian film market. It provides an overview of the Indian film industry, highlighting its significant revenue contribution and competition from Hollywood. The report includes a PEST analysis, examining the political, economic, social, and technological factors impacting the film industry in India, such as government regulations, economic growth, cultural aspects, and technological advancements. It also features a competitor analysis, identifying major international and Indian film production companies. The report further explores international expansion strategies, offering recommendations for New Moon's successful entry and sustainability in the Indian market. Desklib provides access to this report, along with a vast collection of study resources, including past papers and solved assignments, to support students in their academic pursuits.

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Table of Contents
Introduction................................................................................................................................2
The Chosen Company................................................................................................................4
Pest Analysis..............................................................................................................................6
Political Factors......................................................................................................................6
Economical Factors................................................................................................................7
Social Factors.........................................................................................................................7
Technological Factors............................................................................................................8
Competitor Analysis...................................................................................................................8
The Cultural Environment of the Emerging Economy..............................................................9
International Expansion Strategies...........................................................................................12
Recommendations....................................................................................................................15
Conclusion................................................................................................................................16
References................................................................................................................................17

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Introduction
New Moon is a private film production company which is based in Soho, London. It is
created in the year 1996 by the founder's name Caroline Rowland. In 2005 one of the
employee from the new moon company produced and wrote a film which helped to win the
bid for the London Summer Olympics 2012. The film production company also produces and
develops both documentary and fictional, educational and sports films (Aulet, 2014). The
entrepreneur starts a new business plan in India because of every year 1000 approx film
produced in India. For the past one decade, the film production in India has gone to new
heights. The Indian film industry is basically known as Bollywood, it is the biggest
contributor to the Indian industry in terms of revenue, follows by the Bengali film industry,
Bhojpuri, Marathi, and Gujarati. It has the biggest entertainment industry in the India for a
number of films produced and its theatrical admissions (around 4 billion). In terms of revenue
the Indian industry contributes to being smaller in size mainly due to the low variety of
tickets. Moreover, its rising competition from the Hollywood films continued to affect it
(Banks, 2013).
In India there are many international productions are produced films such as Disney, Fox,
Dreamworks and Warner Bros. While on the other hand, the Indian film industry has
continued to rule, mostly in the southwest part of the Asia. From 2010 the growth of Indian
multiplexes has mostly improved for the audiences of that country and has to increase per
ticket costs. In 2016 the number of multiplex screens in India is expected to 2100 and after 8
years the number of multiplexes should go about 2600.The revenue of the theatres constitutes
around 65% overall (Barnes, 2016). In 2010 the trend for the pre-satellite rights and home
video rights gained momentum. In 2012 films are due to release witnessing negotiation for
satellite rights and also home video rights. For the past four years, the online rights are much
increased after the introduction of the 4th generation service of the Indian telecom company.

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The film production department has the best opportunity for their films through online with
the help of their official sites. In India, a Bollywood film takes 6months for planning and 18
months in execution compared to the Hollywood film takes more time to execute, the gap is
still significant. As per Burrow, Kleindl and Becraft (2017), Indian filmmakers say that there
is no problem, what they lose out on planning and they make up their time of their execution.
This project includes the plan of new moon production to expand in India and its various
operations that will undertake further it will include micro and micro analysis of the industry,
as well as the company, tends to join them in a relationship with a motive to find in
sustainability.

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The Chosen Company
Since the entrepreneur creation in 1996, New moon has been a private film production
company based in Soho, London. Caroline Rowland is the company founder. She is an
English and journalism of Rhodes University (United Kingdom) and also serves as a trustee
of the Rhodes University trust. The New Moon production company was set up by producer
Amada Partridge (Clark, 2016). Stephen Macmillan is the Director and Cameraman of the
Film production company. The company has worked with many countries, corporate and
brands to tell their films stories to the audiences and the globe. New moon to produce the
films tends to tell their London Olympic bid story. The company has helped KPMG secure
both the BBC and Unilever audit contracts, helped Dubai to secure the rights of the
sponsorships to channel 4 racing. To host the world expo has also supported the campaign
after company success with the 2012 London Olympic bid, and thereafter. As stated by
Delaney (2013), in the year 2007 company started a project that is Sochi 2014 and 2011 for
the PyeongChang 2018 Olympic bids. And also the company worked on their upcoming
projects that are FIFA WORLD CUP Qatar 2022, Doha 2019 IAAF World Championship,
Lima 2019 Pan American Games bids.
The production company also produces films for many other cities, countries, federations,
brands, and individuals. The enterprise is also doing the ‘go to' campaign storyteller and also
became the first film production company to become the custodian of the stories for the
foundations and stories. The entrepreneur also received widespread critical acclaim for doing
the films for NGOs, including UNICEF, Beyond sport and sported and have consistently
achieved increased awareness and positive engagement amongst the audiences of the whole
world (Ebert and Griffin, 2017). The enterprise also provides documentaries and also many
varieties as well as creates and produces broadcast identities, sponsorships indents, and on-
screen graphics. The New Moon Company also develops dramas for small screens and

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television as well as doing advertiser programming for funding. It provides talent access,
casting database, production service which includes location scouting, contract, legal
services, logistics, English speaking crews, technical support, offline and online editing,
budgeting and scheduling. As opined by Evans (2013), the company also produces films and
videos for various uses, including business television, public relations, internal
communications, branding and marketing, award ceremonies, events, fundraising and also
bids. The New Moon production company also offers TV admin service, including BACC
clearances, music, and image licensing, talent buyouts, securing BACC clearances,
negotiating repeat fees, post-production management, holding archive material and taking
care of transmission.
One of the company biggest achievements is to re-opening of St Pancras station, because of
re-interpretation of WH AUDEN's Nightmail was commissioned by Eurostar. During the
presence of the Majesty Queen Elizabeth II as well as the prime minister and dignitaries from
across the world, the iconic film was premiered. In 2012 they released comedy films and
adventure films. New Moon Films decided on a documentary approach filming real people
using ‘The Shuttle'. Parents, Grandmothers, Group of friends and businessmen talked
honestly and excitedly for their pioneering trips under the English channel (Golann, 2016).
After that, the commercial film was a huge success. The Guardian newspaper mentioned that
commercial film was a super hit. In 2013 the company was commissioned by BBC Scotland
and the Scottish film production fund to produce a short drama of 20-minutes, 35mm Taran
short directed by Jim Shields, a Television School graduate and a fellow National Film. On
BBC2 the film was subsequently screened. For the past 15 years the film production
company, a full service film and print experience. The production company is very much
expertise for producing films in Barcelona such as Ibiza, Seville, Marseille, Paris and Cape
Town. For the videography under the new moon umbrella, the team that provides all the

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video content for the media. One of the largest location companies in Spain from the pre-
production to post-production with exclusivity for some of the best location for filming in
demand.
For clients, all of this helps to be more budget efficient and to provide faster turnaround. The
company has a multilingual team to assists easy communications, in translation, no
information would be lost. The New Moon Production company has only one motto that is
We Believe In Work By Passion. It is not just a company, it is a team that understands the
future of production. In 2015the Enterprise already created a new presentation for the bid
upcoming Youth Olympic Games which is going to be likely Lausanne. The company also
started a new TV and digital campaign for EWOS to encourage their greater participation. In
2000 New Moon wins for the very first time industry awards for Blue Christmas Crisis. In the
same year, New Moon Production Company released his official of the 2012 Olympic
Games. In 2014 National Academy Of Arts and Science nominated Emmy for the first time
(Goodman, 2015).
Pest Analysis
The following parts of the pest analysis are structured into many ways that are definition, a
short example, Interpretation, the usage and a quick summary. The definition of the pest
analysis is all the combination of the first letters that is Political, Economic, Socio-cultural
and Technologies.
Political Factors
According to Guest (2017), political factor is an activity that must be related to the central
government policy of that country. It also very much depends on the economy. Political
factor is the thing that most of the business will keep a watchful eye, for example, regulatory

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shifts or new legislation, which could very much effect on their business. Political factors
which include tariffs, trade registration, labour law and tax policy.Health, education are
included in these factors. In India,political difference is the main obstacle for the film
production company. Without help of political party or a political member, such organize
cannot be opened. In 2017 the Indian government said that instead of 12 percent tax per ticket
now it will charge 28 percent tax per ticket. In the country, there are unexpected delays,
labour unrest, interruption of normal and regular business due to political effect, bureaucratic
inefficiency, corruption, legal disputes or delay due to suppliers and local partners, pricing,
import, tax issues (Harris, 2014).
Economical Factors
The factors which includes rates, interest rate and economic growth.The major impacts that
how to operate businesses and how to make decisions (Hughes, 2015). In India, cost
advantage offer will be given to the employee and also the overall production cost. Economic
growth in India is far better than the other Asian countries.
Social Factors
Social factors are the most important factors for the health consciousness, cultural aspect,
population growth and emphasize safety. For the past decades, there have been a lot of
changes for the film promotion. Bollywood films are now starting full use of the social
networking. According to James (2015), the use of the various diversified channels rages
right from the trailer launching online to motion picture and start posting its photos in their
different networking photos. Now it became a trend for the Bollywood films, for easy
accessibility, user-friendliness. Before a film release, an official community was set up by the
production house.

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Technological Factors
Technologies factors include environmental and ecological aspects, technological change,
R&D activity, automation. It includes how to give a minimum or normal efficient production
level and also outsourcing stations level decisions. Furthermore, costs and quality can affect
when technological shift and last but not least it can lead to innovation (Jones, 2015). In
India nowadays technology is an integral part of the film. The technological growth today has
enabled a lot of sense to filming a film with help of VFX, 3D and 4D devices. Nowadays it is
possible for the audience to watch the film wherever they want with the help of online
channels.
Competitor Analysis
According to Kerr (2014), the strategic decision is the most important part of the analysis. It
is an essential component of corporate strategy. There are several international film
production companies in India such as Fox star studios, Disney film production etc. And also
there are several Indian film production companies also such as Yash Raj Flims, Tips
Industries Limited, Amir Khan Productions, Hari Om Productions, Dharma Productions,
UTV Motions pictures, Sahara production company, Green Tea Entertainment house, Ajay
Devgan films, Red Chillies Entertainment, Phantom Flims , Balaji Motion Pictures, Excel
entertainment. For a new production company, a powerful strategy is must required. The
company needs to know about the market share of the other film production companies as
well. For a new film production company, the price of the products should be reduced
compared to the other film production companies (Mino, 2017). The production company
should try a different approach because in India the film production market is a very a
competitive one.

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As per Pakroo and Stewart (2016), the organization must use a social media platform for
distribution. To increase the value of customer the company should produce a new scheme or
opportunities. A new enterprise should know what the market segment is for your
competitors. Further, knowledge about the competitors will enable to develop competitive
advantage factors for the new venture. The company should also know what are the quality of
the product, pricing and how they promoting their products. Once you have got all those
information about your competitors, you are ready to analyze it. For a new production
company, there are four factors that are extensive distribution, customer focus, economies of
scale and product innovation is the key to success. A company should also know that what
are the reason behind that some competitors are struggling with their products and also the
other hand some competitors are doing very good business with their products. With the four
factors that are extensive distribution, customer focus, economies of scale and product
innovation (Palffy, 2015). In India, there are no barriers to investment, and the potential for
their future growth is very high. The number of multiplexes was built day by day across all
the cities in India. Therefore the numbers of tickets were increased day by day. And also the
prices of the tickets are less due to a large number of multiplexes.
The Cultural Environment of the Emerging Economy
As stated by Peng (2017), when a foreign company moves to the Indian market, the new
company must know how to deal with that markets and the culture. Further, knowledge about
the history of the country shall also help the management to integrate STP models and
enhance business operations. A company representative communicates with the society in a
proper way and a proper manner with the appropriate respects. In India, culture means
religion, language, and norms. In India there are different cultures and also there are different
food and different habits. For an example, many Europeans and Americans eat a lot of beef
but in India, the beef is strictly prohibited for Hindus. Muslims are not allowed to eat pork. In

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India, culture differs food widely, and they eat food directly with the hands but in other
cultures, people use a wooden stick or steel spoon. A new company must have local
representatives to know the country law and legal information before it comes to legal
bindings, and also a navigator from locals to navigate the company in a proper way. A new
enterprise or organization follows some procedure to expand the business from one country
to another country. And an unknown market's are very riskier (Pijl et al., 2016). The company
entry is also a vital process. There would lots of questions regarding their cultural differences,
religions would come up. There are lots of things to find out more about that country. It can
be done with concerning primary, secondary data through researching.
In India there are total 10 languages films are made and these are Hindi, Bengali, Marathi,
Gujarati, Kannada, Malayalam, Tamil, Telegu, Oriya, Bhojpuri. Understanding the new
country culture a company must find out a way to reach otherwise the location is different but
the demographic should be same. For a new company in a different country, a new approach
may be needed to make that product. And the potential of the foreign market expectations.
After analyzing the country including their personal and professional customs, they should
handle it in a proper way (Rue, 2014). This is also a great signal from a great leader and
customers in the market of the new country. A new film production company must know that,
has any of the new company tried to enter this market before or they are failed to do so.
When a new company is creating that brand's in the country make sure the culture does not
effect on this. A new company needs to deliberate about the actual economic potential of the
market .In the film business, India is the best-chosen country because compare to other Asian
countries India has the highest number of multiplexes. In India, the success ratio of any films
is very high at the box office. Each and every year in India is losing 40% of its revenue
through piracy. Copywriting of any films are very common in India, each and every part of
the country is so widespread it is also can be called as a small-scale industry. Copies of the

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same day released film are selling nearby broker or agencies. Most of the South Asian
countries have the same problem (Schmidt and Cohen, 2014).
As compared to other industry, the film industry generates revenue of 45%. The new moon
production company is always looking to expand their company in an optimistic way. After
Hollywood India have the fastest growing film markets around the world. According to
Starkman, Hamilton and Chittum (2015), for a film production company, some experts are
needed from India. In India, Disney Production Company first produced a film with jointly
by Red Chillies Entertainment which is a full-length animation movie. The film did well at
the box office in the year of 2009.After that Warner Bros and Ramesh and Rohan Sippy, film
production company released a film in the year of 2010.The film did dramatically well at the
box office and after that, the share market of the Warner Bros and Ramesh and Rohan Sippy
are going to high. Disney also ties up with the Yash Raj for 4 films with the Tamil megastar
Kamal Hassan.Bollywood has a legal industry but several banks declined loans to the
producers in India to finance their films. After that, there is so many international film
producing company are coming to invest the money in films. In 2017 there is almost 400
production house in India, and there are only 32 of them are registered.
According to Stephany (2015), the Indian government which is enjoying its incredible
entertainment tax from their respective consumer. In India, it is the very easy format for an
individual production house. In a single unit, every film has been produced. At a time there-
there is producing only 1 film. And the next production of the film is made after the previous
production of the film released the first copy. The capital investment for the film production
is provided by the distributor who would pay 50% of the film production cost. Thereby,
leaving the production company to get rest of investment from other film related sectors.
Here the other means includes an investment of the production company.