The Asylum: Mocking Their Way Through Hollywood SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of The Asylum: Mocking Their Way Through Hollywood
The co-founder and chief executive officer of The Asylum, a movie production company headquartered in Burbank, California, must decide whether the company needs to explore other avenues for growth or change its current business model to boost profitability. The company has developed a unique imitation strategy to reduce the uncertainty of financial success in filmmaking - its "mockbuster" business model is to produce B-rated movies that use plotlines similar to that of major Hollywood films already in production and release them at the same time as or just before the comparable Hollywood film. It can thus take advantage of the large marketing and promotion campaigns that large film production studios employ to promote their films while producing a substantially cheaper (but somewhat similar) film. To date, all of these mockbusters have been profitable, but changes to property rights regulations and increased litigation cases may come to affect the bottom line. There are three options going forward: maintaining the status quo, focusing even more on producing mockbusters or shifting toward completely original film production. What should the company do to ensure future success?
Authors :: Bryan Hong, Stacey Clark, Charlotte Zhen
Swot Analysis of "The Asylum: Mocking Their Way Through Hollywood" written by Bryan Hong, Stacey Clark, Charlotte Zhen includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Film Asylum facing as an external strategic factors. Some of the topics covered in The Asylum: Mocking Their Way Through Hollywood case study are - Strategic Management Strategies, and Strategy & Execution.
Some of the macro environment factors that can be used to understand the The Asylum: Mocking Their Way Through Hollywood casestudy better are - – increasing energy prices, central banks are concerned over increasing inflation, increasing commodity prices, cloud computing is disrupting traditional business models, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing government debt because of Covid-19 spendings,
geopolitical disruptions, there is increasing trade war between United States & China, etc
Introduction to SWOT Analysis of The Asylum: Mocking Their Way Through Hollywood
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in The Asylum: Mocking Their Way Through Hollywood case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Film Asylum, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Film Asylum operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of The Asylum: Mocking Their Way Through Hollywood can be done for the following purposes –
1. Strategic planning using facts provided in The Asylum: Mocking Their Way Through Hollywood case study
2. Improving business portfolio management of Film Asylum
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Film Asylum
Strengths The Asylum: Mocking Their Way Through Hollywood | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Film Asylum in The Asylum: Mocking Their Way Through Hollywood Harvard Business Review case study are -
Sustainable margins compare to other players in Strategy & Execution industry
– The Asylum: Mocking Their Way Through Hollywood firm has clearly differentiated products in the market place. This has enabled Film Asylum to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Film Asylum to invest into research and development (R&D) and innovation.
High brand equity
– Film Asylum has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Film Asylum to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Training and development
– Film Asylum has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in The Asylum: Mocking Their Way Through Hollywood Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to lead change in Strategy & Execution field
– Film Asylum is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Film Asylum in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Analytics focus
– Film Asylum is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Bryan Hong, Stacey Clark, Charlotte Zhen can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Successful track record of launching new products
– Film Asylum has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Film Asylum has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Innovation driven organization
– Film Asylum is one of the most innovative firm in sector. Manager in The Asylum: Mocking Their Way Through Hollywood Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
Cross disciplinary teams
– Horizontal connected teams at the Film Asylum are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Strong track record of project management
– Film Asylum is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
High switching costs
– The high switching costs that Film Asylum has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Superior customer experience
– The customer experience strategy of Film Asylum in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Film Asylum digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Film Asylum has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Weaknesses The Asylum: Mocking Their Way Through Hollywood | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of The Asylum: Mocking Their Way Through Hollywood are -
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study The Asylum: Mocking Their Way Through Hollywood, in the dynamic environment Film Asylum has struggled to respond to the nimble upstart competition. Film Asylum has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Lack of clear differentiation of Film Asylum products
– To increase the profitability and margins on the products, Film Asylum needs to provide more differentiated products than what it is currently offering in the marketplace.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study The Asylum: Mocking Their Way Through Hollywood, it seems that the employees of Film Asylum don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Workers concerns about automation
– As automation is fast increasing in the segment, Film Asylum needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the The Asylum: Mocking Their Way Through Hollywood HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Film Asylum has relatively successful track record of launching new products.
Products dominated business model
– Even though Film Asylum has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - The Asylum: Mocking Their Way Through Hollywood should strive to include more intangible value offerings along with its core products and services.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Film Asylum is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study The Asylum: Mocking Their Way Through Hollywood can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Skills based hiring
– The stress on hiring functional specialists at Film Asylum has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Film Asylum supply chain. Even after few cautionary changes mentioned in the HBR case study - The Asylum: Mocking Their Way Through Hollywood, it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Film Asylum vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study The Asylum: Mocking Their Way Through Hollywood that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case The Asylum: Mocking Their Way Through Hollywood can leverage the sales team experience to cultivate customer relationships as Film Asylum is planning to shift buying processes online.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study The Asylum: Mocking Their Way Through Hollywood, is just above the industry average. Film Asylum needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
Opportunities The Asylum: Mocking Their Way Through Hollywood | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study The Asylum: Mocking Their Way Through Hollywood are -
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Film Asylum can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Film Asylum can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, The Asylum: Mocking Their Way Through Hollywood, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Film Asylum has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study The Asylum: Mocking Their Way Through Hollywood - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Film Asylum to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Film Asylum can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Film Asylum can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Developing new processes and practices
– Film Asylum can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Manufacturing automation
– Film Asylum can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Film Asylum can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Film Asylum to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Creating value in data economy
– The success of analytics program of Film Asylum has opened avenues for new revenue streams for the organization in the industry. This can help Film Asylum to build a more holistic ecosystem as suggested in the The Asylum: Mocking Their Way Through Hollywood case study. Film Asylum can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Film Asylum can use these opportunities to build new business models that can help the communities that Film Asylum operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Film Asylum in the consumer business. Now Film Asylum can target international markets with far fewer capital restrictions requirements than the existing system.
Leveraging digital technologies
– Film Asylum can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Learning at scale
– Online learning technologies has now opened space for Film Asylum to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
Threats The Asylum: Mocking Their Way Through Hollywood External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study The Asylum: Mocking Their Way Through Hollywood are -
Increasing wage structure of Film Asylum
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Film Asylum.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Film Asylum in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Film Asylum can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study The Asylum: Mocking Their Way Through Hollywood .
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Film Asylum business can come under increasing regulations regarding data privacy, data security, etc.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Film Asylum in the Strategy & Execution sector and impact the bottomline of the organization.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Film Asylum will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
Environmental challenges
– Film Asylum needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Film Asylum can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Regulatory challenges
– Film Asylum needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Film Asylum needs to understand the core reasons impacting the Strategy & Execution industry. This will help it in building a better workplace.
Shortening product life cycle
– it is one of the major threat that Film Asylum is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Film Asylum with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Weighted SWOT Analysis of The Asylum: Mocking Their Way Through Hollywood Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study The Asylum: Mocking Their Way Through Hollywood needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study The Asylum: Mocking Their Way Through Hollywood is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study The Asylum: Mocking Their Way Through Hollywood is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of The Asylum: Mocking Their Way Through Hollywood is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Film Asylum needs to make to build a sustainable competitive advantage.
