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Marketing Research of Universal Studios

Marketing Research of Universal Studios

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Marketing Research of Universal Studios
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Netra Shetty
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Marketing Research of Universal Studios - April 9th, 2011

Marketing Research of Universal Studios : Universal Pictures (sometimes called Universal City Studios or Universal Studios for short), a subsidiary of NBCUniversal, is one of the six major movie studios.
Founded in 1912 by Carl Laemmle,[1] it is one of the oldest American movie studios still in continuous production. On May 11, 2004, the controlling stake in the company was sold by Vivendi Universal to General Electric, parent of NBC.[2] The resulting media super-conglomerate was renamed NBC Universal, while Universal Studios Inc. remained the name of the production subsidiary. In addition to owning a sizable film library spanning the earliest decades of cinema to more contemporary works, it also owns a sizable collection of TV shows through its subsidiary NBC Universal Television Distribution. It also acquired rights to several prominent filmmakers' works originally released by other studios through its subsidiaries over the years.

As the twentieth century drew to a close, the U.S. printing and publishing industry experienced unparalleled demand for its products. Despite intense competition from the electronic media and people’s scarcity of leisure time, the industry’s value of shipments from the sale of newspapers, periodicals, books, and trade advertising materials climbed steadily, reaching an estimated $184 billion in 1992 dollars in 1999. Profit margins also advanced, aided by a pattern of low prices in materials costs—especially paper—and gains in worker productivity. Employment in printing and publishing had moderate growth through the decade of the 1990s, exceeding 1.5 million by 1999, but competition and consolidation reduced the number of establishments to an estimated 62,000 in 1999 from 65,000 a decade earlier.

Attending to the informational needs of the huge domestic market is the primary focus of U.S. printers and publishers, but the industry is an active participant in the international economy as well and thus is subject to global forces. These critical forces include changes in technology, new opportunities in global markets, international sourcing of equipment and supplies, and increased cross-border investment. Technology.

The move toward digital (electronic) technology has influenced the world’s publishers as well as printers. The previous technology—analog—was based on film, plate, andchemical processes that required intermediary operations before textual input was ready for the printing press. Digital technology removes those intermediary activities and binds the production ties between printers and publishers more closely. The decades ahead will witness a sorting-out process that will determine which parts of the production process will be done at publishers’ offices and which tasks will be accomplished at the printing plant.

There are 9 important business units for the Peninsula Hotels, which are grouped according to the city or country that the specific hotel is located: Hong Kong, Chicago, New York, Beverly Hills, Tokyo, Bangkok, Beijing, Manila and Shanghai.

Figure SEQ Figure \* ARABIC 1 BCG Matrix

Figure 1 shows the BCG matrix analysis of the 9 business units of the Peninsula Hotels that is based on the financial report of the company in 2008.

1) Cash Cow – a business unit that has a large market share in a mature and slow growing industry. Thus, it requires a little investment and generates cash that can be used in other business units (QuickMBA 2007). Manila is the only business unit that was included in the said category. This is because Peninsula Hotel is considered as one of the most prominent and famous hotels in the city. Above all, one of the most important aspects to be considered is the number of competitors in the city.

2) Star – a business unit that has a large market share in a fast growing industry. This business unit generates cash, however, due to the rapid growth of the market, they require investment in order maintain the lead of a specific company (QuickMBA 2007). Hong Kong and Beijing are the two business units which included in the said category. The Peninsula is considered as one of the oldest and classic hotels in the world, particularly in Hong Kong and Beijing. Because of that, the hotel had been able to gain competitive advantage, in terms of image towards the Chinese and foreign visitors. However, because of the growing economy of the said cities, it had resulted to the growing number of players in the industry, thus pushed Peninsula Hong Kong and Beijing to focus on different strategic plan and implementation that will maintain their competitive advantage.

3) Question Mark or Problem Child – a business unit that has a small market share in a high growth market. A problem child requires resources in order to grow market share, however, the fact if they will be successful and become stars is not sure (QuickMBA 2007). Tokyo, Bangkok and Shanghai are the three business units that were included in the said category. In Bangkok, the Peninsula hotel has a small share in the market because

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