holland america line global case competition: acceleron

AcceleronTaking your business to the next level

Aaron Dao| Anthony Shen | Shafa Habib | Zach Mabe

EXECUTIVE SUMMARY

Country Analysis

• Top choices• Primary characteristics

Resource Allocation

• BRIC Diversification• Evaluation

Strategies & Risks

• Short-term• Long-term

R&D

• Next-generation technology• Viewing experience

EVALUATION CRITERIA

Economic Situation

International Business Policies

Movie Culture

Market Capacity

B R I C

2.6 4.4 2 4

Scre e n s p e r 2 0 0 , 0 0 0 P e o p l e

EVALUATION MATRIX

Country Analysis Resource Allocation Strategies&Risks R&D Recommendation

Brazil Russia India China

Economic Situation


Movie Culture

Market Capacity

EVALUATION MATRIX



Economic Situation


Movie Culture

Market Capacity

BRIC DIVERSIFICATION


30%

20%40%

10%

BRAZIL

CHINA

INDIA

RUSSIA

$284.76

$44.82

$78.33

$76.25

FINANCIAL ANALYSIS


BRAZIL

CHINA

IN-DIA

RUS-SIA

In millions

SWOT


S W

O T

SHORT-TERM STRATEGY


CHINA40%

INDIA20%BRAZIL

30%

RUSSIA10%

BRAZIL CHINA

TARGET MARKET Families Middle-class and above

POSITIONING Family event Classy outing

MARKETING STRATEGY Aggressive social media campaign

SHORT-TERM STRATEGY


CHINA40%

INDIA20%BRAZIL

30%

RUSSIA10%

SHORT-TERM STRATEGY


SHORT-TERM STRATEGY


Brazil China

Distribution 20% 80%

Target Social Media Impressions per Day (millions) 36.53 7.31 29.22

CPM $

0.75

Projected cost per day (thousands) $

27.40 $

5.48 $

21.92

Social Media Impressions per Year (Billions) 13.33 2.67 10.67

Projected cost per year (millions) $

10 $

2 $

8

LONG-TERM STRATEGY


CHINA40%

INDIA20%BRAZIL

30%

RUSSIA10%

IMAX MAGIC

LONG-TERM STRATEGY


CHINA40%

IN-DIA20%

BRAZIL30%

RUSSIA10%

R&D RECOMMENDATIONS


Laser projection

Experience enhancement

Reducing operating costs

Creating IMAX Magic

EXPERIENCE ENHANCEMENT


Laser projection

REDUCED OPERATING COSTS


Laser projection

IMAX MAGIC


Laser projection

Power Distance Individualism Masculinity Uncertainty Avoidance

Long Term Orientation

Indulgence0

10

20

30

40

50

60

70

80

90

100

China Brazil US

RESOURCE ALLOCATION

IMPLEMENTATION STRATEGIES

RESEARCH

APPENDIXCOUNTRY ANALYSIS

FINANCIALS POLITICS MISC.

Brazil Income before taxes

Ease of doing business

Competition

Russia Purchasing power per city

Political Stability

Target market

India Control of corruption

Market saturation

China Voice and accountability

Social media marketing

Cultural analysis

CULTURAL ANALYSIS

Laser projection

Power Distance Individualism Masculinity Uncertainty Avoidance

Long Term Orientation

Indulgence0

10

20

30

40

50

60

70

80

90

100

China Brazil US Russia India

INCOME BEFORE TAXES

2014 2016 2018 2020 2022 2024 2026 $(20.00)

$(10.00)

$-

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

Brazil Income before Taxes 2015-2025

Year

Inco

me

befo

re ta

xes

(mill

ions

)

INCOME BEFORE TAXES

2014 2016 2018 2020 2022 2024 2026

$(5.00)

$-

$5.00

$10.00

$15.00

$20.00

Russia Income before Taxes 2015-2025

Year

Inco

me

befo

re ta

xes

(mill

ions

)

INCOME BEFORE TAXES

2014 2016 2018 2020 2022 2024 2026

$(10.00)

$(5.00)

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

India Income before Taxes 2015-2025

Year

Inco

me

befo

re ta

xes

(mill

ions

)

INCOME BEFORE TAXES

2014 2016 2018 2020 2022 2024 2026

$(15.00)

$(10.00)

$(5.00)

$-

$5.00

$10.00

$15.00

$20.00

$25.00

China Income before Taxes 2015-2025

Year

Inco

me

befo

re ta

xes

(mill

ions

)

BRAZIL

BRAZIL: ECONOMIC SITUATION

Strong economy, but based on commodities

Movie industry is not controlled

the state

80% of population is middle class

87% urban population

BRAZIL: INTERNATIONAL BUSINESS POLITICS

Highly protectionist of state economy

High ease of doing business

High political stability

BRAZIL: MOVIE CULTURE

High indulgence83% of movie

market share is from Hollywood

BRAZIL: MARKET CAPACITY

Small amount of existing IMAX

screens

Russia

RUSSIA: ECONOMIC SITUATION

Weakened economy due to

sanctions

Highly reliant on commodity prices

Shrinking population

75% of population are middle and

upper class

RUSSIA: INTERNATIONAL BUSINESS POLITICS

Current economic sanctions

Low political stability

Low control of corruption

Wish to restrict Hollywood

movies imported

RUSSIA: MOVIE CULTURE



RUSSIA: MARKET CAPACITY

Moderate amount of existing IMAX

screens

INDIA: ECONOMIC SITUATION

Worsening public finances

Over half of population is lower

class and uneducated

Currently, only 17% of population is middle class or

higher

40% urban population by 2020

INDIA: INTERNATIONAL BUSINESS POLICIES

Low ease of doing

business

Low political stability

INDIA: MOVIE CULTURE



INDIA: MARKET CAPACITY

Extremely low amount of existing

IMAX screens

Extremely low amount of existing

screens

CHINA: ECONOMIC SITUATION

2nd largest economy

Most purchasing power within

BRIC countries

60% urban population

Significant middle and upper class

increase

CHINA: INTERNATIONAL BUSINESS POLICIES

Low chance of economic sanctions

Trade partners with the

United States

High ease of doing business

Don’t restrict United States

imports

CHINA: MOVIE CULTURE

50% movie market share is from Hollywood

Leading movie industry growth

engine

CHINA: MARKET CAPACITY

Large amount of existing

screens

High number of existing

IMAX screens

POLITICAL STABILITY

Brazil Russia India China0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

Political Stability by BRIC

Gov

erna

nce

Indi

cato

r (%

)

EASE OF DOING BUSINESS


10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Ease of Doing Business by BRIC

Gov

erna

nce

Indi

cato

rs (%

)

CONTROL OF CORRUPTION


10.0

20.0

30.0

40.0

50.0

60.0

70.0

Control of Corruption by BRIC

Gov

erna

nce

Indi

cato

r (%

)

VOICE AND ACCOUNTABILITY


10.0

20.0

30.0

40.0

50.0

60.0

70.0

Voice and Accountability

Gov

erna

nce

Indi

cato

r (%

)

PURCHASING POWER

CHINA40%

INDIA20%BRAZIL

30%

RUSSIA10%

BRAZIL RUSSIA INDIA CHINA $-

$10,000,000,000

$20,000,000,000

$30,000,000,000

$40,000,000,000

$50,000,000,000

$60,000,000,000

$70,000,000,000

$80,000,000,000

Purchasing Power per City by BRIC 2013, 2020

PURCHASING POWER PER CITY 2013 PURCHASING POWER PER CITY 2020

Purc

hasi

ng p

ower

($)

COMPETITION

CHINA40%

INDIA20%BRAZIL

30%

RUSSIA10%

COMPETITION

CHINA40%

INDIA20%BRAZIL

30%

RUSSIA10%

EXHIBITOR-BRANDED PREMIUM LARGE FORMAT SCREENS, BY REGION

Region PLF Screens

North America 686 49%

Asia Pacific 378 27%

Central and South America 224 16%

Western Europe 70 5%

Eastern Europe 28 2%

TARGET MARKET

Urban Population, 2013: 87%

TARGET MARKET: BRAZIL

TARGET MARKET: BRAZIL

Middle Class Size, 2013: ≈80%

TARGET MARKET: CHINA

Urban Population > Rural

TARGET MARKET: CHINA

Middle Class Size, 2013: 422 million

TARGET MARKET

CHINA40%

INDIA20%BRAZIL

30%

RUSSIA10%

Brazil China India Russia0%

20%

40%

60%

80%

100%

120%

Projected Middle Class Growth 2013-2020 BRICs

Proj

ecte

d M

iddl

e Cl

ass

Popu

latio

n gr

owth

(%

)

MARKET SATURATION

CHINA40%

INDIA20%BRAZIL

30%

RUSSIA10%

CHINA BRAZIL INDIA RUSSIA UNITED STATES0

5000

10000

15000

20000

25000

30000

35000

40000

45000

Total number of movie screens by BRIC 2013

Num

ber o

f mov

ie s

cree

ns

MARKET SATURATION

CHINA40%

INDIA20%BRAZIL

30%

RUSSIA10%

CHINA BRAZIL INDIA RUSSIA UNITED STATES0

5

10

15

20

25

30

Movie screens per capita 2013

Mov

ie s

cree

ns p

er c

apita

SOCIAL MEDIA MARKETING

SOCIAL MEDIA MARKETING: BRAZIL

2nd place, behind the U.S., in time spent on social media.


CHINA40%

INDIA20%BRAZIL

30%

RUSSIA10%


2nd place, behind the U.S., in time spent on social media.


Interaction


Entertainment

SOCIAL MEDIA MARKETING: CHINA

World’s most active social media environment.

300 million active users.


Platform: Qzone


Personalization


Presence