Hollywood’s success
It remains undeniable that Hollywood is very strong in film industry. What to minds is whether Hollywood is the best differentiator between fantasy and fact? Some of them are widely and it is understood that Hollywood’s portrayal of British is plays a big role. As a result of clustering, Hollywood movies are viewed publicly with an instance of widening American cultural imperialism (Hesmondhalgh, 2007). To the world of cinema, global culture poses a greater threat rather than a promise. The U.S. has a natural advantage in moviemaking over the U.K because of a large home market. Statistics show that countries that specialize in moviemaking are those where movies are most popular like the U.S.A. A larger market size remains a factor in determining who becomes a market leader. The American films account for about eighty percent of box office revenues in Europe (Bilton, 2007).
Movies produced in Hollywood have specific concentrations that add value compared to movies in the U.K. The fact that these movies are highly visible and entertaining enhances their global appeal. These qualities have made American movies increasingly popular in international markets.
Hollywood producers invest more money compared to European countries lie the U.K. An earlier estimate places the American budget at about thrice the amount all European countries invest in the film industry. Often, European numbers are so small and vulnerable to the market (Ferrell and Pride, 2011).
Since he 11970s, the European film industry have seen their market exports collapse with an alarming rate because as for now, Hollywood is now in competition with European producers In their individual country and not across European markets as before.
In the US we have experienced popularization of TVs that as a result have played a major role in damaging the European cinema. Demographic circles have even worsened the European woes. People at the age above 36 years don’t go to movies nowadays because they believe it is meant for the youth alone (Hesmondhalgh, 2007). European countries suffer not only once because they have a smaller young generation compared to the US and that the traditional European film styles suit the older audience than the young ones.
Segmentation refers to the aggregating of prospective customers into clusters tat share common needs and responds almost similar to a marketing action. This enables companies to target different consumer categories who perceive (Hesmondhalgh, 2007) full value of products and services differently from each other. Hollywood uses this strategy so as to reach its different audiences. For example, it produces movies that are meant for children and adults depending on the type of target audience. Market segmentation is practiced by marketers to identify the smallest group of their customers. Marketing deals directly with the customer in order to survive in business.
The movement of people from one place to another has also seen into it that Hollywood succeeds in reaching its audiences. When a person is travelling from America to Africa for example and carries along with him some movies produced by Hollywood, the person will have promoted Hollywood in one way or another. Which is very important because the Africans might develop interest and want to see the product hence will go ahead to purchase them.
The modern forms of communication and transportation has made it easier for Hollywood to reach its audiences easily. For instance, the internet is one powerful tool that Hollywood uses to advertise and promote its products. The number of people visiting the internet at any given time is big hence the main reason why Hollywood has succeeded to be the leader in the market.
Faster methods of transport have come up that have enabled Hollywood to transport their products to the world easily (Bilton, 2007). They include the invention of electric train, airplanes and many more have made it easy for Hollywood to make its products reach the customers within a short time so that the movies do not become old after they have been produced. This is to say that the movies Hollywood produces will reach the market in good time when they are still fresh.
Large corporations like Hollywood who invest heavily and therefore becomes very hard for new comers to survive. Movies produced by these large companies sells at a cheaper price compared to these produced by small and upcoming companies.
Best marketing strategies will clearly lock out new investors leading to a prevalence of concentrated ownership of the media sector (Bilton, 2007) because the new comers find it hard to penetrate through. Hollywood has ensured that it markets its products well and has so far managed to penetrate deeper and get newer markets. Hollywood also uses the latest technologies to produce and advertise its products hence make them to be on top of their game.
Political factors heavily determine who controls the market at some point in the industry. We have political investors who are not players but fund politics in return for kickbacks through appointments and government tenders (Ferrell and Pride, 2011).
A struggle to win a large market makes the same investors to widely invest in different places in terms of subsidiaries.
References
Hesmondhalgh, D. (2007). The cultural industries. London: Sage.
Bilton, C. (2007). Management and creativity: from creative industries to creative management. Malden, MA: Blackwell Pub.
Ferrell, O. & Pride, W. (2011). Foundations of marketing. Mason, OH: South Western Cengage Learning.
