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Ankit

UNDERWENT BANKRUPTCY PROCEEDINGS IN 1996-1998 • VARIOUS INVESTORS WERE FIGHTING OVER THE CONTROL OF THE COMPANY • HOW DID IT GET SO BAD? .THE CASE • MARVEL ENTERTAINMENT GROUP. OWNER OF THE POPULAR MARVEL COMICS.

CASE HISTORY • RONALD O.5 MILLION AND RETAINED A 65% STAKE . HE TOOK THE COMPANY PUBLIC IN 1991 • HE MADE $37.2 MILLION ON AN INVESTMENT OF $10. PERELMAN BOUGHT A CONTROLLING STAKE IN MARVEL IN 1989 • HE IMPLEMENTED COST CUTTING MEASURES AND INCREASED COMIC BOOK PRICES • WHEN REVENUES INCREASED.

(ACTION FIGURE MAKER) • MARVEL INCURRED A DEBT OF $700 MILLION .CASE HISTORY • AFTER THE IPO. PERELMAN BOUGHT VARIOUS COMPANIES: • FLEER • SKYBOX (TRADING CARD COMPANIES) • PANINI GROUP (ITALIAN STICKER MAKER) • HEROES WORLD (DISTRIBUTION) • TOYBIZ INC.

VARIANT COVERS AND MAKING HEROES WORLD SOLE DISTRIBUTOR ALSO HURT SALES • ACQUIRED COMPANIES WERE NOT DOING WELL ALSO • BY 1996. MARVEL WAS UNABLE TO MEET DEBT OBLIGATIONS • ON 27 DECEMBER 1996. FILED FOR BANKRUPTCY PROTECTION UNDER CHAPTER 11 TH OF US BANKRUPTCY CODE .CASE HISTORY • COMIC BOOK SALES STARTED DECLINING IN 1993 • SPECULATIVE BUBBLE HAD BURST • TACTICS LIKE INCREASING PRICES.

LOW MORALE • SKILL – ICONIC CHARACTERS NEGLECTED • STYLE – TELLING STYLE. AUTHORITATIVE .7S ANALYSIS – PRE BANKRUPTCY • STRATEGY – NO CORE STRATEGY • STRUCTURE – ACQUIRED BUSINESSES • SYSTEM – INCREASING REVENUE FROM NON-CORE BUSINESSES • SHARED VALUES – HIGHEST RETURN SOUGHT • STAFF – LAYOFFS.

) • TOYBIZ (NOW MARVEL TOYS) • MARVEL STUDIOS • MARVEL INTERACTIVE (DIGITAL MEDIA. FANTASTIC FOUR. PETER CUNEO BECAME CEO IN 1999 • GOT RID OF UNPROFITABLE BUSINESSES BOUGHT BY PERELMAN • FIVE BUSINESS UNITS • PUBLISHING (NOW MARVEL WORLDWIDE INC. SILVER SURFER TH .) • LICENSING (NOW MARVEL CHARACTERS INC. ONLINE ENTERTAINMENT – DEFUNCT) • MARVEL STUDIOS SIGNED LICENSING DEALS WITH • SONY FOR SPIDERMAN • 20 CENTURY FOX FOR X-MEN .RESTRUCTURING • F.

MOVIE DEALS • STRUCTURE – 5 DIVISIONS • SYSTEM – RENEWED FOCUS ON INTELLECTUAL PROPERTY • SHARED VALUES – CREATIVITY • STAFF – INCREASED MORALE • SKILL – ICONIC CHARACTERS ENHANCED IN VALUE • STYLE – DELEGATING STYLE .7S ANALYSIS – POST BANKRUPTCY • STRATEGY – FOCUS ON CORE ASSETS.

ELEKTRA.POST RESTRUCTURING RESULTS • X-MEN RELEASED IN 2000. EARNED $821 MILLION • MARVEL ONLY GOT SMALL PORTION OF REVENUES • EARNINGS FROM PUBLISHING AND LICENSING PICKED UP • VISION OF MARVEL BEING AN ENTERTAINMENT COMPANY USING ITS COMIC BOOK ASSETS TO GENERATE MEDIA-BASED LICENSING FEES WAS STRENGTHENED • RELEASE OF BAD MOVIES LIKE DAREDEVIL. GHOST RIDER HURT POPULARITY . EARNED $296 MILLION • SPIDERMAN RELEASED IN 2002.

DISNEY ACQUISITION • DISNEY ACQUIRED MARVEL IN 2009 IN A DEAL WORTH $4.24 BILLION • MARVEL STUDIOS NOW SUBSIDIARY OF DISNEY STUDIOS • MOVIES AND COMIC BOOKS CONTINUE TO BE SUCCESSFUL .

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WILLIAM BEVINS.PERELMAN’S LEADERSHIP • ONLY CARED ABOUT MAXIMIZING HIS RETURNS • FOLLOWED NO CORE STRATEGY • COST LEADERSHIP: KEPT INCREASING PRICES • QUALITY: NO FOCUS ON QUALITY OF STORIES • INNOVATION: ALL NEW ACQUISITIONS FAILED • INTERNATIONALIZATION: DIDN’T ENTER NEW MARKETS • TELLING STYLE OF LEADERSHIP • CEOS LIKE RICK UNGAR. SCOTT SASSA MERELY FIGUREHEADS • MARVEL EMPLOYEES WERE HIGH ON ABILITY AND WILLINGNESS • DELEGATING APPROACH SHOULD HAVE BEEN ADOPTED .

PETER CUNEO’S LEADERSHIP • DIVIDED MARVEL IN TO 5 DIVISIONS • SOLD OFF LOSS MAKING ACQUISITIONS • CUT COSTS • MARVEL STUDIOS SOLD LICENSING RIGHTS TO MOVIE STUDIOS • TURNAROUND COMPLETED. STEPPED DOWN IN 2003 • DELEGATING STYLE OF LEADERSHIP (MARVEL STUDIOS RUN BY AVI ARAD) .

THANK YOU! .