MBA BATCH 2018-20

TERM -6END TERM EXAMINATION

BUSINESS OF CREATIVE INDUSTRIES

Date: 25/04/2020 Session: Forenoon

Duration: 2hours Total Marks: 30

Instructions:

1. This is an Open-Book/Note/Info-Sources Examination

2. Answers will be subjected to checks by plagiarism software and hence please
attempt an honest workto avoid getting penalized for mal-practices.
3. Avoid taking help from your classmates and friends.
4. Enter your name and roll number in the box provided
5. Answer all the three questions. Each question carries 10 marks.
6. Rename the document as IFMRGSB.FINALexam.BCI.YourFirstName.docx
7. After completing the answers, forward the document to bciexam@krea.edu.in,
anil.srinivasan@krea.edu.in and sathyanarayanan.ram@krea.edu.inwith subject line
as BCI Exam Submission - YourFirstName

NAME Katnam Lokesh Narayana Rao ROLL NO. C20-083

--------------------------------------------------------------------------------------------------------------

To be filled by the Evaluators:

Question Number Marks out of 10 Remarks (if any)
Q1
Q2
Q3
TOTAL OUT OF
30
 NAME Katnam Lokesh Narayana Rao ROLL NO. C20-083

1. What is the new model of innovation readiness espoused by the

Creative Industries and do you agree with it?  (Answer within 250 words)
– 10 Marks

The New model for Innovation readiness can studied based on the innovation matrix
in which the two parameters Markets and Technology are taken on two different axis
and each axis is divided into two parts Existing and New
The four quadrants in the innovation matrix are
 Incremental Innovation
It is a innovation made with existing technology for a existing market and
example for this kind of innovation is WhatsApp gave an update today that
it would allow 8 members for video call.
 Disruptive Innovation
It is a innovation made with new technology for existing market, for this
we can take the example of Red Digital camera for film making which
previously relied on the Films to store the footage and OTT platforms can
be considered as disruptive
 Radical Innovation
It is a innovation made with new technology for new market, Now a days
theatres are coming with new technology to give an experience of Live
Sound which in turn will open a new market
 Architectural Innovation
It is a innovation made with existing technology for a new market we can
take the example of Canvas which came up with radio kind of device with
old songs
I agree with the innovation matrix and it various parameters used to define the matrix
 2. How did Netflix plan its geographic expansion and how does it stand out
among its competitors? (Mention at least three factors). [Answer within
250 words] – 10 Marks

By the year 2017 Netflix has its presence in over 190 countries and 73 million of its total 130
million subscribers are from outside US. In Q2 of 2018 its international revenues exceeded
the revenues from US.
Netflix achieved its geographical expansion in three phases
 In 2010 Netflix entered Canada as it is geographically close to US and has less
cultural similarities with US
 In the second phase it entered 50 countries with lessons learnt in phase and criteria for
selection is shared similarities, affluent customers and bandwidth availability
 In the third phase which made them reach a total of 190 countries, where they came
up with personalized algorithms and focused on adding more languages

Three factors which made Netflix standout among its competitors are:
 Production of content which suited not just local for local but also for local to global
and also it focused on gaining local knowledge to success in a new market
 The product developments it came with such as personalized algorithms, optimizing
the platform for mobile users and using of customer usage data to find the offering
which are working the best
 The tie-ups it had with different local players such as getting dedicated Netflix button
on Vodafone’s TV service and its partnerships with Telifonica in Latin America and
Spain
3. Read the following caselet scenario (ETSY) and answer the question

In 2005, Etsy’s founders, Rob Kalin, an amateur furniture maker, Chris Maguire and
Haim Schoppik saw that there was no place an artisan could go to sell his or her
products, except Amazon and eBay. And there, craftspeople and buyers felt lost and
out of place. In response, in their Brooklyn apartment,they developed the concept of
an online platform for craftspeople to sell their goods. Naming it Etsy, they created
and launched the website in a remarkable few months, funded in part by a $50,000
investment from a friend. Kalin said that he named the site Etsy because he "wanted a
nonsense word because I wanted to build the brand from scratch. I was watching
Fellini's 8 ½ and writing down what I was hearing. In Italian, you say etsi a lot. It
means 'oh, yes' (actually it's "eh, si").Three years into its existence, Etsy’s staff had
increased to 50 with 120,000 registered sellers, based in 127 countries. Its business
model involved modest fees for listing items, making transactions, payment
processing and providing marketing services. Some of the winning values and policies
that became “must-haves” for this community were installed early. Etsy is…
 A community of buyers who are passionate about clever, high-quality craft
activity and view the site as a fun place to hang out
 A site that draws people in with intriguing products and features like “editors’
picks,” “most popular” and much more
 About a human connection, where a buyer gets a special product from a real
person, not from an anonymous firm or Amazon
 A place where creativity lives and thrives because it is powered by creative
sellers and buyers
 Committed to advancing social and environmental challenges. In 2012, Etsy
became a Certified B Corporation, meeting the highest standards of verified
social and environmental performance and is legally permitted to balance
profit and purpose

Etsy has a rich, evolving system to help sellers that includes:

 Easy-to-use software to help sellers create their own website in minutes

•Assistance in reaching shoppers on Etsy with promoted listings
 Help in advertising on Facebook, Pinterest, Twitter or Instagram
 A Sell on Etsy App to manage orders, edit listings and respond to buyers
instantly
 Etsy Plus with customized options that elevate an Etsy seller’s performance.

Amazon Handmade Enters: In 2015, ten years after Etsy launched, Amazon
introduced Amazon Handmade, an Etsy competitor, with the option of using
Fulfillment by Amazon. In some ways, it was the ultimate compliment.
Question 3:
Suggest a suitable branding and promotion strategy for Etsy in India. [Answer within
250 words] – 10 Marks
Branding and Promotion Strategy for Esty India are:
 We know India is land of artisans and craftsmen, though there is a lot of individuals
who produce handmade they lack marketing capabilities, which is limiting them just
to the local market
 They should use their sales men to bring these kind of artisans to their platform and
they should also come with social media campaign to make them sign in the platform
 The company should brand them themselves as marketing consultants and they just
provide a platform to market their products as they might face opposition as a foreign
player
 Coming to promotion strategy to attract customers the company should use social
media tools as SEO and SEM to attract customers based on their interest, preference,
age, location etc
 They should also promote themselves as a social entrepreneurial firm as they
encourage the remote and rustic talent of our country and in this way the company can
gain a good brand image in the minds of customer
 They should hire content creators and influencers to attract the likes of prospective
customers who are very much interested in Hand made goods