Japanese Animated Films

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Strategy Answer 4 questions

Answer 1

It is currently apparent that the Japanese Animated Films is picking up to boom despite staying dormant for some quite awhile. The u-turn comes shortly after the anime market had just found new and wide audience or customers, making the industry one of the most valuable exports of Japan. However, with over 430 anime production companies, stiff completion among the playing companies becomes one of the main issues that must be taken into consideration when analyzing the existing market situation as well as the profit viability of the industry (Karagiannopoulos, Georgopoulos,  & Nikolopoulos, 2005). For effective analysis, Porter’s Five Forces model is applied.

Generally, according to Porter (2008), whether it is all about venturing into a new business or just seeking for further insight into the prospects of the existing company, but the facts remains that one will probably have to address the issue of competition. Similarly to the case Japanese Animation Films which has just picked a new different root of operation following the audience or customer sudden increase. In this paper, Porter’s Five Forces model is used to address such questions in the analysis (Narayanan, & Fahey, 2005). This model will therefore consider five major factors that would help in determining whether or not the animation industry will be profitable basing on other similar businesses competing in the same industry. Basing on Porter’s model, the genesis profitability is more of the same regardless of the nature of the industry. In that regard, it should therefore be acknowledged that the structure of the Japanese animation industry is what will actually drive both its profitability and competition (Porter, 2008). The five factors that are therefore considered in this analysis includes competitive rivalry, suppliers bargaining power, customers bargaining power, threats of new entrants in the industry and the possible threats of substitute products.

Competitive rivalries

Japanese Animation Films industry is just one among the many films industries all over the world and now that its expects to export its films products to outside its boundaries, there is high likely for its productions to face stiff completion for other countries including Mexico, Philippine, America among many others in all over the word. The market rivalries may perhaps be having the best film production to conquer the market overseas that Japanese animation films which has for quite a while has stayed dormant and is likely to lack information and having challenges in producing the current or trending market demands (Narayanan, & Fahey, 2005).

Suppliers bargaining power

This force helps in analyzing the power the supplier has as well as the control it might be having in controlling the potentiality for him or her to increase the prices which would subsequently see the lowering of the profitability of the business. In that regard, the industry is however likely to have cheap supply of raw materials such as the drawing materials as well as labor. Unfortunately, the industry is likely to spend much more source for the labors following the slow rate of production whereby it takes 100 people three to three-and-a-half months only to produce a 21-minute program show for a typical TV slot. In addition, considering the high number of companies in the Japanese Animation Films industry, the supplier is likely to suppliers are likely to raise the prices of the basic film production materials.

Customers’ bargaining power

Generally, this force is particularly focusing on the consumers’ power to affect the quality and pricing of the films productions (Karagiannopoulos, Georgopoulos, & Nikolopoulos, 2005). The huge population of the Japanese is likely to offer a favorable local bargaining ground to the industry assuming majority of the population are interested in watching films and theater arts. However, the internationally on the exported film products, the customers’ bargaining power might not be favorable since there are wide varieties for comparison. It would therefore only favor them industry if they major their focus on the quality of the films produces.

Threat of new entrants

This force examines and analyzes whether it would be difficult or easy for new companies to enter into the industry and cause more intense completion. Consider the moderate number of the playing companies in the industry, that is, 4300 films producing companies. There is still high likelihood for more new companies to join the industry not locally, but also internationally. This would lead to decrease in the gross profits made by the individual companies in the industry.

Threats of substitute products

The force general determines how easy it would be for consumers of a certain products to change from consumers a given products or services to consuming of the alternative products produced by the competitions or rivalries (Narayanan, & Fahey, 2005). Films being part of the diverse sports and entertainment world industry is likelihood to face sudden replacement with other entertainment activities including sports, movies and so on. Owing to the constant high profits generated by the aforementioned film substitutes, it is therefore apparent that Japanese animation film industry may face decline in their profits.


Answer 2

With the widespread availability of high-speed broadband internet, there is greater opportunity for the films companies to exchange data electronically. As the telecommunication technologies continues to advance to shape the entire global business industries including the film industry, the availability of high-speed broadband internet also continues to becomes one of the significant aspects influencing the competitive condition of the film animation industry (Lee, & Chan-Olmsted, 2004). To the film animation industry, the widespread of the high-speed broadband internet tries to influence the stiff competitive condition by enhancing equal business growth opportunities for each of the company in the film industry as well as driving the development of arrange a range of new and unique application especially movies or films on demand. The availability of the high-speed broadband internet will allow the film companies within the Japanese animation industry to compete fairly by enabling them to upload their film productions faster for their potential customers to access and download (Gillett, & Lehr, 1999).

In addition, since the high-speed broadband internet offers an improved upload and download speed, different films companies can now quickly produce and upload online their film and movies for customers to download as immediately as they are upload, thereby increasing the rate of competition based on the improved quality in terms of access of the products. In fact, unsuitable film animation companies which may not know how to effectively utilize such a high speed internet to improve their service delivery and quality would automatically be edged out of the industry (Lee, & Chan-Olmsted, 2004). In addition, such a high speed internet would also improve the efficiency of the communication between the individual film companies and their customers from all over the word, and thus the smartest company would obviously a better platform for reaching its customers. Nevertheless, offering potential customers a waver and free high-speed internet bundles would serve as an important strategy especially for typical mid-sized film producing company to attract more customers to download more of their films and movies, and thus enjoying a better a competition edge among other giant companies (Gillett, & Lehr, 1999).

Answer 3

Kim, & Mauborgne (2014) iterate that when the competition within an industry is quite intense and smart company always adopted different unique strategies to outdo their competitors rather going for head on competition. One of the adoptable strategies is the blue ocean strategy. Such strategies are the only most effective mechanism that usually enable the companies especially small or middle-sized ones. Therefore as a hired consultant in the scenario of a mid-sized anime production company competing against giants companies in the films industry, say perhaps a Japan-based company, I would consider thorough effective argumentation of the traditional development of the possible or viable strategy which should only be primarily focused on shaping the blue ocean strategy (Siegemund, 2008).

The first argument would be about how the film company would reconstruct it own market boundaries. This requires the companies to focus on areas that would not attract the attention of the competitors. For example, offering customers with film substitution products such as movies and other entertainments including sports. Also, using application or emotional customer appeals and the changing customers need in relation to the dynamics in the films industry can also do (Siegemund, 2008). Searching for different film markets which are not yet endowed with film anime products would also be another shaping of the blue ocean strategy. Still on the same argument, the production company should also consider increasing their production efficiency so as to enable them reduce the prices of their products for better competitive edge in the films industry. Second major argument is that the mid-sized anime production company should emphasize their operations on key market picture rather mere numbers. The third argument is that the mid-sized anime production company should focus on producing film products which are beyond the needs or expectations of the customers. This will earn it’s a better ration of the market share for reasonable profit regardless of stiffness of the competition in the market. Lastly, the company should consider reviewing the selection of the sequencing strategy (Kim, & Mauborgne, 2014). This will help in shaping the blue ocean strategy by considering critical areas including the buyers advantages, the prices of the film products, achieving the targeted cost, and market penetration. All these suggested arguments when properly implemented would offer the mid-sized anime production company the opportunity to break out and do certain things markedly unique, and thus making it achieve its aimed profits despite the existence of many competitors in the industry (Savage, & Brommels, 2008).

Answer 4

Generally, every business organization needs sufficient resources and capabilities for its operations (Hall, 1992). This is also always vital for businesses to accomplish their competitive advantage positions relative to their business rivals. Nonetheless, the resources and the capability of a company or a business are currently increasingly perceived as one of the main fundamental sources of their competitive advantages within the context of strategic management of businesses in a highly competitive industry (Hall, 1992). Therefore, in the scenario of the Mayfair Flowers, some of the resources that are apparently at its disposal include finance, land for establishing the floral installation and man power including Janet Walsh and her assistance. In addition, wide access to source of information from all over within the London metropolitan region, goo reputation gained by Janet Walsh while she still serving within the town as an account manager, good and an exemplary reputation and perfect skills and knowledge in business management are also other most import resources that are at the disposal of the Mayfair Flower as a newly starting business organization. Janet Walsh being the manager serves as a highly potential human resource at the disposal of her business “Mayfair Flower” considering she once word for a long term as an account manager. In addition, the Mayfair Flower is also undoubtedly having intellectual capital resources at its disposal including its famous patent brand as “Mayfair Flower”, rapidly growing business database and systems.

As it is commonly known that the capability of a business organization or a company is its ability to exploit or effectively use its resources, they are therefore consisting of the routine and processes that help in the management of interaction among the used resources with the main objective as efficiently converting the input into output (Sharma, & Vredenburg, 1998). Therefore, in the case of the Mayfair Flower, it’s purchasing and marketing capabilities is evidently seen as based on the networks and interactions developed earlier on by Janet Walsh and the city dwellers of London. Also, according mode in which Janet Walsh places orders for her purchase of flower and for her customers; her marketing capability can also be claimed as based on her marketing special skills and information technology. Thus, in summary it can be said that purchasing, marketing, and effective resources management are some of the notable strong capabilities at the disposals of Mayfair Flower (Sharma, S& Vredenburg,1998).


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