Surname 1 Student’s Name Instructor Course Date The Marvel Way: Restoring the Blue Ocean 1. There have been several attempts to explain Marvel's success via competitive strategy, but they fall flat: competitive strategy, with this specific case, neither predicts nor explains the outcome. Why? The competitive strategy has been known to create a unique value for a specific set of movie customers. Nonetheless, it is unable to neither predict nor explain the outcome in this case since Marvel only focuses on competing to be the best in comic and superhero films which have resulted in a zero-sum competition the company is not able to win. 2. If Marvel had spent more to hire top-tier movie stars, well-known directors and moved forward the Hollywood Way, would the movies have performed better? Such an approach would make certain Marvel movies even performed much better. Using top-tier stars, directors and using Hollywood strategy would have redefined the making of their movies and ensured Marvel produced high quality and unique films with perfect and consistent storylines. 3. Why do or don’t you think Marvel broke the value/cost trade-off? Surname 2 The aspect refers to the belief about a company having two options that include the creation of superior value to the consumers at a significant price or creating realistic value at a relatively lower rate. I think Marvel’s action was as a result of the blue ocean strategy that enables a company to have both higher value and low cost. The company, therefore, took advantage of the situation to make improvements through an expansion and diving into different market segments. For instance, Marvel was able to use less expensive resources in making movie scenes that did not in any way take away the value of their products in consumer's eyes. 4. Explain the difference between value extraction and value innovation as well as the long-term financial impact of each. Value extraction represents a situation where a firm uses already implemented resources which enable the possibility of more significant expansion of revenue as well as value through what is available. For instance, a company can make a t-shirt line using a superhero from an already available movie. The financial impact of value extraction is the lower cost involved in creation since the products are available and the company only needs to find ways of further using it in generating more revenue. Nonetheless, the revenue realized is not guaranteed to last long. On the other hand, value innovation refers to a situation here a company develops a new product or service altogether that can raise revenue as well as improve company value. Value innovation has a significant financial impact given that it is costly but ensures higher revenue in both short and long run. 5. Who were the noncustomers Marvel targeted? The noncustomers targeted by Marvel include customers who had no interest in buying or reading comic books. Marvel managed to acquire such customers by using the superhero Surname 3 movies with a character-first storyline. Such movies involve a focus on quality day-to-day drama such as aggression, emotions as well as falling in love that captured the attention of the noncustomers without even reading the comic books.
