Select 1 of the economic concentrations (clusters) below:
- Seattle-Tacoma-Olympia, WA aerospace / defense industry
- Central California winemaking industry
- Hollywood movie industry
- Silicon Valley Technology hub
- Texas / Louisiana Gulf Coast crude oil and natural gas production and refining
- Pre-1994 vs Post-1994 US auto and light truck production and the reasons for the change in economic concentration
Write a 700- to 1,050-word paper evaluating economists’ assessments of the role the 4 factors of production played in determining how the economic concentration you selected has evolved. Complete the following in your paper:
- Analyze how the economic concentration in the area you chose was influenced by competition and pricing.
- Analyze how the economic concentration in the area you chose influenced the supply chain.
- Analyze which of the 4 factors of production were the most and least important in determining the economic concentration of the area you chose.
- Predict changes you anticipate for the area of economic concentration you chose. Support your predictions.
Consider the resources provided and other academically appropriate sources.The use of charts and tables to illustrate data is highly encouraged.
Cite at least 2 academically credible sources.
Format your assignment according to APA guidelines.
Hollywood Movie Industry
Hollywood Movie Industry
The holy wood movie industry is one of the most significant contributors to the USA’s GDP. Revenue or proceeds that movie production companies generate is attributable to competition and pricing. The industry sees a dynamic market structure that has shifted from being centered only on pricing power to embracing competition (Cabral, 2019). Even though filmmaking is a lucrative business with colossal revenues, that does not mean that all films produced generated a lot of money. Some movies account for huge losses, especially those who do not become feature films or blockbusters—however, some low-budget films breakout to sell more.
In a competitive market, the consumer has the purchasing power because there are various options to choose from based on their wants, preferences, wants, and desires. For movie production companies to attract customers and survive in the competitive market, they change their pricing strategies (Cabral, 2019). These pricings strategies either boost sales or lower the revenues. When the competition is low, film making companies increase their prices .as a result, they generate high revenue and make more proceeds.
The supply chain also affects the economic concentration in the holly wood movie industry. The industry involves all processes involved in the film production, logistics, and distribution of the films. When the supply chain network is lengthy, the customer has to incur higher prices to get the final product. Holly hood movie industries fancy a short supply chain to reduce dwell and lead time (Cabral, 2019). It is an economic strategy that ensures the product gets to the consumer within the shortest time possible and reasonable. A lengthy and bureaucratic supply chain in the movie business yawns customers, thus reducing the demand. A short supply chain in the movie-making industry is beneficial because the commodity demand increases, generating huge proceeds after the sale.
Resources and capital are factors of productions that influence the economic concentration of the holly wood movie industry. The amount of investment or capital that a film company invests determines the eminence and quality of the movie to be produced (Chen, 2018). Labor is a significant factor in movie production. Production of a movie requires producers, directors, Costume Designer, makeup artists, actors, set designers, scriptwriters, editors, sound engineers, and cameramen. The level of proficiency, expertise, creativity, and the number of laborers determine the movie’s quality. Land, the other factor of production, is less significant in influencing the movie industry’s economic concentration. Location in movie production is the only element that lies within the land. Unless, when necessary, acts on physical sites in movies are rare. Most of the scenes are fictional to reduce logistics costs. Therefore, land merely affects the movie industry, thus having a lean effect on its economic concentration. The holly hood movie industry needs entrepreneurship. It embeds all the other factors of production since the industry creates massive job opportunities for Americans. Contents creators make movies intending to make a profit. Besides offering entertainment, Investors, or entrepreneurs who put in money in the industry do it to earn profits.
Holly hood movie industry has been experienced big shifts in the recent pasts. For instance, show max and Netflix have changed how people watch movies. With digitalization, content will be streamed live. The industry is receiving a new crop of entertainers and the latest technology, meaning that the storyline will be more diverse, touching numerous cultures. Dust will not settle because movies will always try to relate to what is happening today or what will happen in the future. Since it is a virtual world, movie companies have no choice other than adapt or die. America should expect more film production companies yearning to satisfy their customer needs. Customers want movies that they can feel as if they are part of it. They want quality visuals, easy to understand scripts, and high definition images. As competition in the industry becomes more intense, companies ought to refine and redesign approaches that will draw audiences from all social demographics.
Meeting the ever-changing needs of customers will be one of the core mandates. In other words, customer demands affect the economic concentration in the movie industry. Technology in the film industry will not remain static; quality and innovation. Science fiction and animation movies will be high in demand. Movie companies are obliged to produce these films so that they can draw more customers.
Cabral, L. (2019). Some economics of the movie industry. The Japanese Economic Review, 70(3), 298-307.
Chen, Y. (2018). Hollywood and its Global Reach: Analyzing Key Drivers of Movie Demand in Foreign Markets (Doctoral dissertation).