| Profits Up, Up and Away |
18 August 2003
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Marvel Discovers its Business
Marvel Enterprises, which brings the world Marvel Comics, was bankrupt in 1991. In the five years since it emerged from bankruptcy, its stock has soared, and its latest quarterly results exceeded market expectations by about 40%. A great many factors have contributed to the turnaround, but the biggest is the realization by the managers that they aren't actually a comic book company.
Marvel, owners of the Incredible Hulk and of Spider-Man, are actually in the licensing business. The comic book market, of which it makes up a hefty 40%, is merely one vehicle by which their superheroes reach the public. They have discovered that T-shirts, hats, and above all, movies are other such vehicles.
In a way, the comic-book superheroes are ideally suited to the big screen. There is a known audience, the stories are short, simple and easily told by celluloid (unlike a great many Russian novels). If there is commercial success, sequels possibilities abound.
The key from a business standpoint was realizing that the public wanted to see the characters in action, regardless of the vehicle. Producing more and more comic books with more and more characters wasn't what turned the company around.
There is a lesson for any manager in this. One must ask, what business does this company really do? The accurate answer to this question can result in super-human success.
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