UFO Moviez: Strategic Issue, Industry Analysis and Evaluation

This business case study report is centered around the aspects of the strategic issue, industry analysis and the evaluation of the strategies of UFO Moviez and has therefore highlighted the elements of the business model followed by a list of recommendations to the company to sustain in the tough market competition.

Case Study Report
UFO MOVIEZ
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Table of Contents
Introduction................................................................................................................................................................................ 3
1. Current strategy................................................................................................................................................................ 3
2. Business model................................................................................................................................................................ 3
3. Industry analysis.............................................................................................................................................................. 4
4. Strategic issue................................................................................................................................................................... 5
5. Evaluation.......................................................................................................................................................................... 5
6. Recommendations........................................................................................................................................................... 6
7. Conclusion......................................................................................................................................................................... 7
References................................................................................................................................................................................... 7
Appendices.................................................................................................................................................................................. 9
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Introduction
This business case study report is centered around the aspects of the strategic issue, industry
analysis and the evaluation of the strategies of UFO Moviez and has therefore highlighted the
elements of the business model followed by a list of recommendations to the company to sustain
in the tough market competition.
1. Current strategy
The company was founded in 2004 with about Rupees 1 billion investment with a uniquely
designed business model. The company deals with the digital cinema and the provision of latest
technology concerning it. The company provides the solution of enabling the file compression
without having to compromise the sound and video quality. The company enabled programmers
to make such an algorithm that can remove unnecessary data without having quality loss.
However, initially, the UFO Moviez was involved in ensuring that the technology can be adopted
by the distributors. For that, the technology and services such as digitalizing, distribution, and
encoding were provided free of cost. The exhibitors were asked to pay merely 20 to 30% of the
total cost. But subsequently, the company had about 1,000 theatres by 2008 under them. The
current revenue of the company is INR1,790 million (Kapse, 2015).
2. Business model
For UFO Moviez, the provision of high-quality movies and music are essential factors for the
satisfaction of the public. The people-centered business has enabled the organization to focus on
the satisfaction of the public rather than making movies and videos. The film business is engaged
in the utilization of technology as much as possible. The management of the industry is focused
on the advancement of the workforce and technology for ensuring the development of the
satisfaction of the consumers (Samuel, 2012).
The customers would experience several problems concerning the movies and entertainment
since several industries present is not always affordable. The consumers would not be able to
obtain the company that aims to focus toward the general public. Furthermore, the company
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helps the audience to get entertainment at the most affordable rate with high-quality movies and
sound (Nair 2011).
The company creates unique position around the world today by ensuring that their services have
appropriate value with respect to customers. Strong technology has been utilized by
professionals to manage better outcomes. In fact, the management system is centralized that
enables the company to provide effective measures and customer satisfaction.
The employees are further managed by the utilization of Management Information System that
supports the organizational management activities for the attainment of ultimate growth. The
company also utilizes MIS processes for various aspects such as data analysis, retrieval, and
storage. The valuable customer information is also stored without which the company would
have suffered from the loss of valuable information (Purohit 2018).
3. Industry analysis
The earnings of the company had been about INR1,790 million, about $92 million, in 2017,
which rose about 10% since the previous year. One of the top competitors in this field that
provides technological solutions to the film industry is Prime Focus in India. The total revenue of
the company is limited to $2.4 million. As compared to the UFO Moviez, the Prime Focus was
founded much before, in around 1997. However, the customers are not being given the facilities
of higher technology at affordable rates as better as it has been in UFO Moviez. Other than that
the top competitors include Eros International Media, Balaji Telefilms, Cinemax India Ltd, and
Galaxy Entertainment Corporation Ltd (Benghozi, Salvador and Simon, 2017).
Even though the competitors have been able to ensure that the consumers get the ultimate
satisfaction, UFO Moviez still remains on the top due to the ultimate faith value of the customers
(Kumar, 2012). The current price of the UFO Moviez remains at 306.90 Rupees in the economic
time's website (see Appendix 1).
The organization has been able to present about 1500 movies to the general public in about 22
different languages. Moreover, the revenue generated by the organization has also been higher
which tells that the competitors would have to ensure more difficulties to reach the company
concerning the technology and income (Mazumder, 2014).
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The organization's activities relied on technology that enabled the firm to jump at the
foundational benefits in such a short time (Rani, 2011). As compared to the Prime Focus, the
company has achieved growth faster in terms of both revenue and technology. It is certain that
limited barriers are present concerning the UFO Moviez that can stop its ultimate progress since
it is one of the top companies present in India at present. However, the clients and customers of
the company have high buyer power because of the availability of many options. The consumers
can go for another company that can offer services at a much affordable rate even by
compromising quality.
4. Strategic issue
The result of industry analysis can provide three major outcomes or issues concerning the UFO
Moviez industry: the threat of substitution, supplier power, and buyer power (Athique, 2014).
The deeper look at the analysis above would indicate that the other factors such as competitive
rivalry and the new entry have also been among the forces that can impact the organization at
large if they were given appropriate power. If the competitive power of the organization is high
enough, the firm can face many difficulties. Even though the present scenario shows that the
competition does not hold much power, it is not necessary that the future would be the same
(Ganti, 2012).
The reason why Prime Focus can become a great competition for the organization is that the
clients are slowly turning toward it due to the provision of many Bollywood movies. The
company offers 3D conversions, animation, visual effects, and other facilities to the customers so
that the viewers can get high-quality experience. Furthermore, the company has also posted
about 5000 commercials that have continuously shown improved quality of outcome. Such
aspects have introduced new problems for the organization because people have started to turn
toward the Prime Focus and other technologies for customer satisfaction.
5. Evaluation
The powerful strategic alternative for the company includes the enhancement of the market
penetration that can further increase the revenue and brand image. For that, the company should
focus toward the enrichment of the technologies that can further enable the organization to
provide better services as compared to the rivals such as Prime Focus. Such aspects indeed
require higher capital resources and more workforce that can make the objectives possibly
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fulfilled at a faster rate. However, the speed of organizational expansion would also take time
because the new market can provide much difficulty for the organization concerning the wide
acceptance (Punathambekar 2013).
In the Naukri.com, only 1 job is posted concerning the UFO Movies while the number of jobs
constituted for Prime Focus includes about 14 top employment (Naukri.com n.d.). It shows that
the company UFO Moviez has low ratings of job rate as compared to the Prime Focus that can
also increase the problems for the organization. Such a result has been obtained due to the
unfamiliarity of the organization concerning the online-based services. International expansion
might be the only best solution for the organization that can ensure higher growth. Furthermore,
the company should also enable the system of online payment for the benefit of the clients and
customers so that many of them can get attracted. With the new strategy at hand, the organization
can attain many customers in the new and the old Indian market as well. For that, the company
can learn about the policies and standards of the new market so that the organization can provide
effective services and products without any difficulties.
6. Recommendations
The primary move for the UFO Moviez should be the penetration in the market with an advanced
technology. Firstly, the new technologies can be used to attract the customer in the present
Indian market and increase the customer base. Furthermore, such as aspect can further increase
the success rate as compared to the potential threat namely Prime Focus and Eros International.
Furthermore, since UFO Moviez has been more ideal to the consumers at large, the weak
relationship with the producers of the movies enabled the company to fall behind. That is why
Prime Focus is able to gain more popularity in recent years concerning the advancement and
provision of technology for movie production. Such aspects have been important for the
organization since it can help in having an enhanced number of customers all around the world.
The fact that Prime Focus has enhanced a number of customers worldwide can place a negative
impact concerning the developmental rate of the company. This fact urges the company to focus
on international expansion. Along with that, the organization can also enhance the number of
jobs posted online so that the workforce can have expansion along with the company itself. It
would help in having ultimate growth and facing competitive advantage.
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7. Conclusion
The summary of this paper is clear: penetration in both the Indian and international market can
enable the company to overcome potential challenges and have the provision of long-term
success.
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References
Athique, A., 2014. Piracy at the frontier: Uneven development and the public sphere. Media
International Australia, 152(1), pp.87-97.
Benghozi, P.J., Salvador, E. and Simon, J.P., 2017. The Race for Innovation in the Media and
Content Industries: Legacy Players and Newcomers: Lessons for Policy Makers from the Video
Game and Cinema Industries. The Journal of Arts Management, Law, and Society, 47(5),
pp.346-360.
Ganti, T., 2012. Producing Bollywood: Inside the contemporary Hindi film industry. Duke
University Press.
Kapse, A., 2015. Producing film heritage. South Asian Popular Culture, 13(1), pp.89-93.
Kumar, A., 2012. E-MARKETING OF BOLLYWOOD MOVIES (A CASE STUDY OF
MOVIES WITH NET EARNING ABOVE INR 100 CRORE).
Mazumder, M.J., 2014. A Comprehensive Study on the Marketing Factors of the Recent Bengali
Films considering Indian Movie Industry. INTERNATIONAL JOURNAL FOR MARKETING
STUDIES, p.10.
Nair, S., 2011. Providence Equity Partners Tweaks India Strategy. The Private Equity Analyst.
Naukri.com. (n.d.). Jobs - Recruitment - Job Search - Employment - Job Vacancies -
Naukri.com. [online] Available at: https://www.naukri.com [Accessed 3 Nov. 2018].
Punathambekar, A., 2013. From Bombay to Bollywood: The making of a global media industry.
NYU Press.
Purohit, K.J., 2018. AN ANALYTICAL STUDY OF PERFORMANCE OF INITIAL PUBLIC
OFFERINGS (IPOS) AND STATUS OF THEIR MARKET CAPITALIZATION IN INDIA.
INDIAN JOURNAL OF APPLIED RESEARCH, 7(7).
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Rani, D., 2011. IMPACT OF TECHNOLOGY ON CREATIVE INDUSTRIES: A STUDY OF
THE INDIAN FILM INDUSTRY.
Samuel, J.J.J., 2012. A STUDY ON" JOB STATISFACTION" AT HERMES I TICKETS
PRIVATE LIMTED. International Journal of Management Research and Reviews, 2(1), p.36.
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Appendices
1
Source: RHP, ICICIdirect.com Research
2
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