Buyer - Supplier

Relationship
Introduction

Group 4
The Hollywood Motion Picture Industry L22005 -- Vivek Phillip
L22010 -- Naumisha Beswal
L22015 -- Sneh Smriti
Current Scenario L22020 -- Vamsi Krishna
Introduction
Connection between 2 parties
Set of shared values, goals, and interests --
either formal or informal.

A strong relationship can lead to

a. Improved quality of service
b. Better efficiency
c. Cost saving
d. Significant reduction in Risk
e. Competitive advantage
f. Innovation

Key factors for building a strong relationship

01 02 03

Mutual respect Clear Expectations Honest Communication

04 05 06

Collaboration Regular performance Commitment

reviews
 The Hollywood Motion
Picture Industry
Others
29%
Rest of USA
40%

Los Angeles Area

60%
Los Angeles Area
71%

US Motion Picture (1987) US TV Shows (1987)

Activities in a movie production :

Story rights acquisition Principal Photography Hiring of cast & crew
Pre-production Post-production Managing agents & contracts
 Buyers Suppliers

Actors

Production House Agents

Producers Crew

Executive Producers Directors

Photography Crew

Lawers
Since the Hollywood industry was based entirely out of Los Angeles
very few decision makers
most of them were locals / localisation
quick flow of information among all players

This caused
fair dealing in all aspects
refraining from opportunistic behaviors

Hence, an effective supply demand match was created and price setting was fair

This lead to
Inter -firm competition
Interpersonal competition
quest for promising projects that attracted talented individuals.
stark difference in the fee of actors before and after a successful project
 Buyer - Supplier Relation in the industry

Macaulay Culkin Natalie Portman Daniel Radcliff

(Home Alone) (Star Wars) (Harry Potter)
 Current Scenario in the industry

Short term relationship

Increase in number of stakeholders (decision making individuals)

Increase in manipulation

Complexity of contracts has increased

Unions of Suppliers and Buyers