UFO Moviez-gentle disruption Harvard Case Solution & Analysis

UFO Moviez-gentle disruption Case Solution

Introduction

            UFO movies is an Indian's made technology that provides digital movies in Indian cinemas. They generate revenue from three sectors: Per show fee which is charged by distributor, the advertisements show during movie session and fee charged by cinema owner for renting their digital system. This company had so far released 10500 videos in 22 languages. It is operating worldwide which includes UAE, Bahrain Qatar, etc. In 2015, around 54% of all Indian cinemas were using this digital system. Some Major players that are operating in this industry are producers, distributors, digital integrator and lastly are exhibitors.

Problem Statement

The company is facing tough in the Indian market and to overcome this issue there are different alternatives available, and the company is considering which options are suitable for sustainable growth.

FO’s Business model

Who, What and How

            UFO is seen as advanced technology brand and is operating all over the world. Different cinemas in India are the one who use their services to give a high-quality product to their customers. This entertainment company's target market is cinemas that are operating all over the world. The CEO of the company is providing this service to most of the distributors of Indian cinemas.

            A high-quality entertainment movie is being presented by UFO which is being displayed in big screens of cinemas. For their high-quality service, they are going to generate maximum revenue by making maximum sales.

            Company most revenue is generated from three main streams. Firstly is a maximum advertisement which is being done during movie sessions. Secondly is per show fee that distributor paid each time when their film is being shown. Lastly is fees charged by cinema owner for renting their system. With the help of these three perspectives, UFO generated most of its revenue. Their market expansion tells that around half of Indian cinemas are using UFO digital system.

UFO Vision Statement                                                              

            To supply high- quality movies to cinema owner and other distributors.

UFO Mission

The mission of UFO is to provide the high quality digital movie for movie producers, for film distributors and offer a flexible transparent and high- impact platform that allows the advertiser to have maximum engagement with cinema-goers.

Growth opportunity Analysis

              As cinemas in India are more digitized and because of this UFO face challenges for its growth. In this scenario, CEO analyzed some risk related to its business. With a slow pace of invention of new cinemas, he was a little bit worried that it will go to freeze its performance.

Alternatives:

There was three option provided. Firstly was to keep the target on cinema advertisement business. Secondly was to strengthen its technology in other sectors and the Third option was to enter into distribution business.

1. If they target an advertisement business of cinemas:

Pros

• More revenue can be generated.
• Advertiser can get more contracts.

Cons:

• Can move away from its core business.
• Sales can be decreased.

2. If they enter in distribution business:

Pros:

• More revenue can be generated.
• Can get more number of contracts.

 Cons:

• Employers may get dissatisfied.
• No knowledge of distributers and this will create inefficiency.

             Option Chosen:

According to my point of view, UFO movies should adopt a second option which tells for the advancement of technology in another sector. This is a running business which holds a big amount of retained earnings. For this option, some initial investment is to be done in other sectors so that some advancement is to be done. The CEO of UFO should send his employees for training in abroad. There Hollywood movies are shown, and their digital system is more advanced than Indians. Their technology is already so much advanced and if its work is applied in home country it will enhance is productivity and performance in the market.........................

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