Harvard Case - Ava DuVernay's Array: Disrupting the Hollywood Film Industry
"Ava DuVernay's Array: Disrupting the Hollywood Film Industry" Harvard business case study is written by Anita Elberse, Morgan Brewton Johnson. It deals with the challenges in the field of General Management. The case study is 25 page(s) long and it was first published on : Mar 11, 2024
At Fern Fort University, we recommend that Ava DuVernay and the Array team continue their strategic path of disrupting the Hollywood film industry by leveraging their unique position as a champion for diversity and inclusion. This involves a multi-pronged approach focusing on: 1) Expanding the reach of Array's content and impact through strategic partnerships and collaborations. 2) Building a sustainable business model through a combination of traditional and innovative funding sources. 3) Cultivating a strong brand and fostering a culture of innovation and creative excellence within the organization.
2. Background
Ava DuVernay's Array is a multi-platform media company that aims to disrupt the Hollywood film industry by amplifying the voices of underrepresented communities. Founded in 2014, Array has produced critically acclaimed films like 'Selma' and '13th,' and launched a streaming platform featuring diverse content, including independent films, documentaries, and television series.
The case study focuses on the challenges and opportunities facing Array as it seeks to expand its reach and impact while navigating the complex landscape of the entertainment industry. The main protagonists are Ava DuVernay, the founder and CEO of Array, and her team, who are tasked with developing a sustainable business model and achieving the company's ambitious goals.
3. Analysis of the Case Study
To analyze Array's current situation and future prospects, we can utilize a combination of frameworks, including:
- SWOT Analysis:
- Strengths: Strong brand reputation, commitment to diversity and inclusion, innovative content, dedicated team, growing audience.
- Weaknesses: Limited resources, dependence on external funding, competition from established players, challenges in scaling operations.
- Opportunities: Growing demand for diverse content, potential for strategic partnerships, expansion into new markets, leveraging technology and analytics.
- Threats: Economic downturn, industry consolidation, changing consumer preferences, competition from streaming giants.
- Porter's Five Forces:
- Threat of New Entrants: High, due to the rise of independent filmmakers and streaming platforms.
- Bargaining Power of Buyers: Moderate, as consumers have a wide range of choices, but Array's unique content offers value.
- Bargaining Power of Suppliers: Moderate, as Array relies on talent and distribution channels, but its commitment to diversity attracts talent.
- Threat of Substitutes: High, as viewers can access a vast array of content through various platforms.
- Competitive Rivalry: High, as Array competes with established studios, independent filmmakers, and streaming services.
- Value Chain Analysis:
- Primary Activities: Content creation, distribution, marketing, customer service.
- Support Activities: Finance, human resources, technology, infrastructure.
4. Recommendations
To achieve sustainable growth and solidify its position as a leader in the entertainment industry, Array should implement the following recommendations:
1. Strategic Partnerships and Collaborations:
- Partner with established studios and distributors: Secure wider distribution for Array's content through partnerships with major studios and streaming platforms, leveraging their reach and resources.
- Collaborate with other independent filmmakers and media companies: Foster a network of like-minded organizations, sharing resources, promoting each other's work, and creating joint projects.
- Engage with international partners: Expand into emerging markets through strategic alliances with local distributors and content creators, promoting cultural exchange and global reach.
2. Sustainable Business Model:
- Diversify funding sources: Explore alternative funding models beyond traditional grants and investments, including crowdfunding, subscription services, and product licensing.
- Optimize content production costs: Implement efficient production processes and leverage technology to minimize costs without compromising quality.
- Develop a robust marketing strategy: Utilize digital marketing, social media, and targeted advertising to reach a wider audience and build brand awareness.
3. Brand Building and Culture:
- Strengthen Array's brand identity: Develop a consistent brand message and visual identity that resonates with its target audience and reflects its commitment to diversity and inclusion.
- Cultivate a culture of innovation and creative excellence: Encourage experimentation, collaboration, and risk-taking within the organization, fostering a dynamic and creative environment.
- Develop a strong leadership team: Attract and retain talented individuals who share Array's values and contribute to its mission.
5. Basis of Recommendations
These recommendations are grounded in the following considerations:
- Core Competencies and Mission: Array's core competencies lie in its commitment to diversity, its ability to produce high-quality content, and its strong brand reputation. The recommendations align with its mission to amplify underrepresented voices and create a more inclusive entertainment landscape.
- External Customers and Internal Clients: The recommendations cater to the needs of Array's external customers, who seek diverse and engaging content, and its internal clients, who require a supportive and collaborative work environment.
- Competitors: The recommendations address the competitive landscape by leveraging strategic partnerships, diversifying revenue streams, and building a strong brand presence.
- Attractiveness: The recommendations are expected to enhance Array's attractiveness to investors, partners, and talent, ultimately contributing to its long-term sustainability and growth.
- Assumptions: The recommendations are based on the assumption that the demand for diverse content will continue to grow, that technology will continue to evolve, and that Array can effectively navigate the challenges of the entertainment industry.
6. Conclusion
By implementing these recommendations, Ava DuVernay's Array can continue to disrupt the Hollywood film industry, expand its reach and impact, and achieve its mission of creating a more inclusive and representative entertainment landscape.
7. Discussion
Other alternatives not selected include:
- Focus solely on traditional film production: This would limit Array's reach and potential impact, as it would rely heavily on external funding and distribution channels.
- Merging with a larger media company: While this could provide access to resources and a wider audience, it could also compromise Array's independence and creative control.
The key risks and assumptions of the recommendations include:
- Economic downturn: A downturn in the economy could impact funding and audience engagement.
- Industry consolidation: Increased consolidation in the entertainment industry could limit opportunities for independent filmmakers.
- Changing consumer preferences: Shifts in consumer preferences could impact the demand for Array's content.
8. Next Steps
To implement these recommendations, Array should develop a detailed strategic plan with specific timelines and milestones, including:
- Year 1: Establish strategic partnerships, develop a new funding model, and launch a targeted marketing campaign.
- Year 2: Expand into new markets, build a strong leadership team, and invest in technology and analytics.
- Year 3: Achieve profitability, solidify Array's brand identity, and establish a sustainable business model.
By taking these steps, Ava DuVernay's Array can continue to disrupt the Hollywood film industry, create a more inclusive entertainment landscape, and achieve its ambitious goals.
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Case Description
In February 2023 acclaimed filmmaker Ava DuVernay is filming her latest movie, Origin, a daring adaptation of Isabel Wilkerson's book Caste: The Origins of Our Discontents. With Origin, DuVernay is pioneering a method to finance the endeavor-through a combination of investors and grantors-that is unheard of for a film of its size. A group of charitable institutions and individual donors have brought in around $35 million needed to acquire the adaptation rights, develop and produce the film; Array, DuVernay's company, which she describes as "a narrative change collective dedicated to the disruption of inequitable systems in Hollywood's film and television industry," has invested another $5 million. Is Origin on a path to success? What challenges await the filmmaker and her team further down the road, as their focus shifts from producing to distributing and marketing the film? And is DuVernay, with this new financing model, changing the game in Hollywood?
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