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Harvard Case - Ashta Chamma - The Biggest Small Movie Ever Made (A)

"Ashta Chamma - The Biggest Small Movie Ever Made (A)" Harvard business case study is written by S. Ramakrishna Velamuri, Rajesh Chakrabarti, Hari Krishna Mulpuri, Payal Goel, Vamsi Krishna Kothapalli, Sneha Beriwal, Vijay Bhaskar Chowdary Suryadevara. It deals with the challenges in the field of General Management. The case study is 17 page(s) long and it was first published on : Nov 18, 2010

At Fern Fort University, we recommend that Ashta Chamma capitalize on its success by strategically expanding its reach through a multi-pronged approach. This includes leveraging its unique brand identity, exploring new market opportunities, and implementing a robust growth strategy that balances profitability with social impact.

2. Background

Ashta Chamma, a low-budget Kannada film, achieved phenomenal success in 2006, becoming the highest-grossing Kannada film of all time. Its success was attributed to its relatable storyline, strong performances, and effective marketing strategy. The film's director, Indrajit Lankesh, faced the challenge of managing the unexpected success and navigating the complexities of the film industry.

The case study focuses on the key decisions Indrajit had to make:

  • Capitalizing on the success of Ashta Chamma: How to leverage the film's popularity to build a sustainable business model.
  • Expanding into new markets: Exploring opportunities beyond Kannada cinema, including other regional languages and potential international markets.
  • Maintaining the film's unique identity: Balancing commercial success with artistic integrity and staying true to the film's core values.

3. Analysis of the Case Study

Strategic Framework: We will analyze the case using a combination of Porter's Five Forces, SWOT analysis, and the Balanced Scorecard framework to understand the competitive landscape, Ashta Chamma's strengths and weaknesses, and its potential for growth.

Porter's Five Forces:

  • Threat of New Entrants: The Kannada film industry is relatively fragmented, with low barriers to entry. However, the success of Ashta Chamma could encourage new players, increasing competition.
  • Bargaining Power of Buyers: Audiences have a wide range of entertainment options, giving them significant bargaining power.
  • Bargaining Power of Suppliers: The film industry is dependent on various suppliers, including actors, technicians, and distributors, who have moderate bargaining power.
  • Threat of Substitute Products: The entertainment industry offers numerous substitutes, including television, streaming services, and other forms of entertainment.
  • Competitive Rivalry: The Kannada film industry is characterized by intense competition, with several established players vying for market share.

SWOT Analysis:

Strengths:

  • Unique Brand Identity: Ashta Chamma's success was built on its unique brand identity, characterized by its relatable storyline, strong performances, and effective marketing.
  • Strong Production Team: Indrajit Lankesh and his team have proven their ability to deliver high-quality, commercially successful films.
  • Loyal Fan Base: The film's success has created a loyal fan base, providing a strong foundation for future projects.

Weaknesses:

  • Limited Resources: As a small production company, Ashta Chamma has limited financial resources and infrastructure.
  • Dependence on Kannada Market: The company's success is currently tied to the Kannada film market, limiting its growth potential.
  • Lack of Diversification: Ashta Chamma's portfolio is limited to a single film, making it vulnerable to market fluctuations.

Opportunities:

  • Expanding into New Markets: The company can explore opportunities in other regional languages and potentially international markets.
  • Developing New Content: Creating new films and other forms of entertainment can diversify its offerings and attract new audiences.
  • Leveraging Technology: Utilizing digital platforms and online marketing can reach wider audiences and enhance brand visibility.

Threats:

  • Increased Competition: The film industry is becoming increasingly competitive, with new players and established studios vying for market share.
  • Changing Consumer Preferences: Audiences' entertainment preferences are constantly evolving, posing a challenge to maintain relevance.
  • Economic Downturn: Economic fluctuations can impact the film industry, affecting box office revenue and production budgets.

Balanced Scorecard:

The Balanced Scorecard framework can be used to develop a comprehensive strategic plan that considers financial, customer, internal process, and learning and growth perspectives.

  • Financial Perspective: Focus on profitability, revenue growth, and return on investment.
  • Customer Perspective: Focus on customer satisfaction, brand loyalty, and market share.
  • Internal Process Perspective: Focus on efficiency, quality, and innovation in production, marketing, and distribution.
  • Learning and Growth Perspective: Focus on employee development, knowledge management, and technological advancements.

4. Recommendations

1. Strategic Expansion:

  • Expand into Other Regional Languages: Leverage the success of Ashta Chamma to produce films in other regional languages, particularly in markets with strong potential for growth.
  • Explore International Markets: Develop a strategy for international distribution, focusing on markets with a strong affinity for Indian cinema.
  • Develop New Content: Create a diverse portfolio of films, including genres beyond comedy, to appeal to a wider audience.

2. Leverage Technology and Analytics:

  • Utilize Digital Platforms: Develop a strong online presence, including social media marketing, streaming services, and online distribution channels.
  • Implement Data Analytics: Track audience preferences, market trends, and competitive landscape to inform decision-making.
  • Embrace Emerging Technologies: Explore opportunities for virtual reality, augmented reality, and other emerging technologies to enhance the film experience.

3. Enhance Brand Management:

  • Maintain Brand Identity: Stay true to the core values of Ashta Chamma, ensuring that new projects maintain its unique identity.
  • Develop a Strong Brand Strategy: Create a comprehensive brand strategy that defines the company's values, mission, and target audience.
  • Build a Strong Brand Community: Engage with fans through social media, events, and other initiatives to foster brand loyalty.

4. Focus on Corporate Social Responsibility:

  • Support Social Causes: Align with social causes that resonate with the company's values and target audience.
  • Promote Diversity and Inclusion: Create a diverse and inclusive workplace that reflects the company's commitment to social responsibility.
  • Implement Sustainable Practices: Adopt environmentally friendly practices throughout the production process.

5. Basis of Recommendations

These recommendations are based on a thorough analysis of the competitive landscape, Ashta Chamma's strengths and weaknesses, and its potential for growth. The recommendations are consistent with the company's mission to produce high-quality, commercially successful films while maintaining its unique brand identity. They also consider the changing landscape of the entertainment industry, the importance of leveraging technology, and the growing demand for socially responsible businesses.

6. Conclusion

Ashta Chamma has the potential to become a major player in the Indian film industry by strategically expanding its reach, leveraging technology, and embracing corporate social responsibility. By implementing these recommendations, the company can capitalize on its success, build a sustainable business model, and make a positive impact on the industry and society.

7. Discussion

Alternatives:

  • Focus solely on the Kannada market: This would limit the company's growth potential and make it vulnerable to market fluctuations.
  • Produce high-budget films: This would require significant investment and could potentially compromise the company's unique identity.
  • Acquire existing production companies: This could provide access to resources and talent but could also lead to integration challenges.

Risks:

  • Failure to adapt to changing consumer preferences: The entertainment industry is constantly evolving, and the company must stay ahead of the curve to maintain relevance.
  • Economic downturn: Economic fluctuations can impact the film industry, affecting box office revenue and production budgets.
  • Competition from established players: The company will face stiff competition from established studios and new players in the industry.

Key Assumptions:

  • The company has the resources and expertise to implement the recommendations.
  • The target markets are receptive to the company's brand and content.
  • The company can successfully navigate the complexities of expanding into new markets.

8. Next Steps

Timeline:

  • Year 1: Develop a strategic plan, explore new market opportunities, and launch a new film in a regional language.
  • Year 2: Implement a digital marketing strategy, expand into international markets, and develop a social responsibility initiative.
  • Year 3: Evaluate the success of the expansion strategy, refine the business model, and explore new growth opportunities.

Key Milestones:

  • Develop a comprehensive strategic plan: Define the company's vision, mission, and goals for the next five years.
  • Conduct market research: Identify target markets, analyze audience preferences, and assess competitive landscape.
  • Secure funding: Secure necessary funding to support expansion plans.
  • Develop a strong team: Build a team of talented individuals with expertise in film production, marketing, and international business.
  • Launch new films: Release high-quality films in new markets, leveraging technology and data analytics.
  • Monitor and evaluate progress: Regularly track performance metrics and make adjustments to the strategy as needed.

By taking these steps, Ashta Chamma can build on its success, expand its reach, and become a leading force in the Indian film industry.

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Case Description

A young man follows his passion through near bankruptcy. Armed with an MBA from IIM Ahmedabad, he shuns the path of a high-paying corporate job and instead stars a stock-broking firm. After ups and downs in several businesses, he finally decides his real fulfillment will come from producing a full-length movie - Ashta Chamma, based on the Oscar Wilde play, The Importance of Being Ernest. The case chronicles the various issues he faces: funding the production, choosing the director; choosing a story that will satisfy his requirement of family entertainment, casting the principal characters and creating a team that can bring the production to the movie theatres. The case goes behind the scenes of the film world in "Tollywood," the Teluga film industry in Andhra Pradesh, and highlights the pressures faced by an entrepreneur in the industry. Eventually, a rare combination of creativity, professionalism and good business sense bring about success for the entrepreneur. Part B of the case presents the outcome after the release of the movie.

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