Huayi Brothers: Strategic Transformation
(11 pages of text)
In March 2015, Huayi Brothers Media Corporation is China’s most influential entertainment company, accounting for one-fifth of the country’s total yearly box office revenues. In recent years, in an effort to leverage its movie content and copyrights, the company has expanded into developing and distributing games on the Internet as well as building entertainment theme parks in Asia. Now, the chairman and co-founder is considering a partnership with Hollywood’s STX Entertainment to jointly invest in and co-produce 18 films and distribute them worldwide within two years. Should the company enter into this partnership or not? What is the best strategy to move forward and grow internationally outside of China? Or should the company concentrate on bettering its competition by concentrating on its core business portfolio in visual (both movies and television), live (musical performances and theme parks) and Internet gaming in China and Asia?
The case can be used in undergraduate and graduate courses in strategy, international business or global strategy. It is designed to help instructors address the following objectives:
- To understand the business model of an innovative and very successful Chinese company.
- To develop an appreciation for the management of product/market and geographic diversification.
- To explore the benefits and constraints of implementing a global strategy.
Arts, Entertainment, Sports and Recreation
China, United States, Large, 2015
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