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MLA
Subject:
Business & Marketing
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Case Study
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English (U.S.)
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Case Assignment – Arundel Partners Business & Marketing Case Study

Case Study Instructions:

The CEO of Arundel Partners would like a report and presentation detailing the viability of Arundel’s
business model. Specifically, they would like concise answers to the questions below. They are willing to sit in on a brief presentation that brings across the main points of the report.
1) There are two possible reasons why Arundel Partners wants to enter the sequel rights business:
a. Studios undervalue sequel rights, allowing Arundel to purchase them cheaply.
b. Studios are willing to sell sequel rights for low prices in order to get the cash they often
desperately need to finance the first film.
(In the marketing environment, there are tons of competitions. The studio and the other investor will not allow the existence of the undervaluation of the sequel right. )
Discuss why the first reason is unlikely to be a sustainable business model and the second reason
is more likely to be sustainable in the long-run.

Case Study Sample Content Preview:
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Is Arundel purchasing sequel rights cheaply sustainable?
Arundel’s purchasing decision of major films at a cheaper price carries risk from a number of sources. For instance, if Arundel is considering buying rights to a studio’s entire production run for a one to two-year period, then they will decide to buy the sequel rights before the production of the films, so they lack insight of whether each film will be a hit or a flop. Arundel would need to earn about $2 million per film to break even with the price of purchasing sequel rights. Thus, this business model would not be sustainable.
Is Arundel’s selling of sequel rights for low prices for funding of their first film sustainable?
Arundel is considering selling their sequel rights at a low price for more than one studio’s entire production portfolios for an extended period. For example, if specific film was a portfolio hit, and the company thought selling the sequel would be profitable, it would finance the first film by producing the sequel. Alternatively, if they sell their sequel rights to finance their first fil...
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