Members of our Entertainment Center of Excellence (CoE), particularly those in the film and TV business often grapple with this very question. Certianly, whether or not to pursue blockbusters goes to the heart of a company's strategy and it has pros and cons. Harvard's John Quelch is clearly in favor of this strategy, and here's why:
More risky than pursuing blockbusters is not to pursue them, to condemn your enterprise to a lifetime of slave labor harvesting the long tail of micro-opportunities rather than imagining, pursuing and marketing the global solution to an important, widely shared problem.
This way of thinking can apply to not just movies, but also to other industries, as Quelch points out, such as pharmaceuticals. To make his point, he provides what he calls the "five S's" of blockbusters. They are:
- Sheer size.
Do any of the products or services your company is developing or currently marketing fit these criteria? To go deeper into this discussion, read the full post here.