性视界

Over the past decade, Disney has been diversifying from a movie studio into a live entertainment giant by entering into adjacent markets. For example, theme parks, product sales, and other business lines now account for more than 90% of profits. This strategy has effectively shifted the role of Disney Studios from the primary driver of revenue, into a lost leader: Disney produces movies and films not to drive revenue from screening, but to engaged an audience who will later engage with Disney鈥檚 other lines of business.

Taking a long-term company-wide perspective, Disney鈥檚 entrance into the over-the-top digital platform must be positioned in a way to maximize exposure (and not to maximize revenue). As video on demand service becomes further accessible and offers more exclusive content, it may appear that movie theatres may be going out of business. [1] However, at the same time, consumer entertainment consumption patterns have been shifting towards out of home experiences. [2] The combination of these two trends has driven Movie Theatres to target a more premium segment by offering more than just a screening product, as reflected in the increase in average ticket prices. As a result, there will remain a (sizable) premium experiential market for movie consumption, which should not be neglected. While, the move into over-the-top digital platform is a natural progression of the market, Disney should consider structuring deals with exhibitors to avoid backlash and maintain its touch with the premium consumer of movies.

[1] Josh Dickey, 鈥淭he end is near for cinema鈥�, , Mashable, April 2017, Accessed December 2017
[2] Eventbrite Market Research, 鈥淔ueling the Experience Economy鈥�, , Accessed December 2017

Jet.com鈥檚 ability to compete directly with Amazon will be a tough. There are few advantages that Jet.com is offering that cannot be copied and better executed on by Amazon. For example, Jet.com鈥檚 strategy to pass on the savings generated from its 鈥渄ynamic pricing system鈥� is presently being offered through 鈥淎mazon No Rush Shipping,鈥� which offers consumers compensation for opting in for a longer delivery timeline.

Consumers are shopping for the best price. As a result, survival in the industry will be determined by the player who can most efficiently fulfill orders. Jet.com鈥檚 only path to success will be to leverage the cost efficiency produced by its parent company鈥檚 4,700 stores, hundreds of distribution centers, and 6,200 trucks. [1] If anyone can take on the giant Amazon, it鈥檚 Wal-Mart; however, it won鈥檛 be an easy win.

[1] Brad Stone and Matthew Boyle, 鈥淐an Wal-Mart鈥檚 Expensive New E-Commerce Operation Compete With Amazon?鈥�, Bloomberg, March 2017, Accessed December 2017

Diageo must move as fast as possible to prevent any delays in its supply chain operations. In a market where beer consumption is slowly decreasing while craft beer鈥檚 market share within the beer segmented increases, Guinness will need to compete fiercely. [1]
Furthermore, any cost increases should be absorbed by Diageo: the brand has already been experiencing declining sales as a result, Diageo shouldn鈥檛 be giving its consumers any other excuse to pass Guinness for another drink.

[1] 鈥淚t鈥檚 no longer Guinness time,鈥� The Economist, March 2016, , Accessed December 2017

Whether H.E.B.鈥檚 disaster response efforts were primarily motivated by profits or morals, the reality is that there is a clear need in the market that H.E.B. is able to fulfill effectively. Despite the fact that we would expect the government to drive first response efforts during natural disasters, many governments lack infrastructure and institutional knowledge to do so effectively. As a result, often, governments鈥� relief efforts are less effective when compared to the efforts of for-profit organization. [1] H.E.B.鈥檚 response during Hurricane Harvey is a good example of how a private firm can effectively fulfill a need not served by the government. The most effective way of solving a social crisis is by showing that it can be done profitably 鈥� H.E.B. was able to both create social capital and shareholder return by effectively responding to Hurricane Harvey.

[1] 鈥淗EB vs Harvey: Texans Helping Texans,鈥� Texian Partisan, August 2017, , accessed December 2017

Very difficult and complicated issue 鈥� and certainly unequitable.

Nasheed鈥檚 intent to purchase land from other countries not impacted by rising sea levels in order to relocate displaced residence can lead to numerous political complications: How will tax revenue be allocation to the local government providing for these residence? How can the displayed residents exercise influence over the area that they are living in? Will the residents be willing to relocate? Given the numerous complications with this strategy, it would be difficult to successfully implement it. There are countries (e.g., the Netherlands) that have been battling rising sea levels for many years through infrastructure investment. Diverting the funds towards such strategies may potentially represent a more effective way of preventing residence from being displaced.

Parallel鈥檚 can be drawn between Sunrun鈥檚 situation and the manufacturing industry within Japan: for years, the strength of the Yen resulted in an ever increasing price tag on all Japanese manufactured goods. However, Japanese manufacturers responded by reducing costs through continuous operational improvements and innovation.[1] Looking at Exhibit 2, it appears that Sunrun鈥檚 gross profit margin has been steady/improving while EBITDA margin has been decreasing. This implies that the company鈥檚 overhead costs are the driver of the eroding EBITDA margins. If that is the case, the company should consider investing in its operations to reduce costs and remain competitive in the face of increasing material costs.

[1] 鈥淛apanese companies improve profit margins despite strong yen,鈥� Nikkei Asia, November 2016, , accessed December 2017