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The Hunger Games: Catching Fire: Using Digital and Social

Media for Brand Storytelling Porter Value Chain Analysis


Porter Value Chain Analysis of The Hunger Games: Catching Fire: Using Digital and Social Media for Brand
Storytelling "Lionsgate Hunger" is based Michael E. Porter book "The Value Chain & Competitive Advantage -
Understanding Business Processes". The The Hunger Games: Catching Fire: Using Digital and Social Media for
Brand Storytelling case study is written by Mohanbir Sawhney, Pallavi Goodmanand is widely used to help
professionals challenges in Sales & Marketing field. The areas covered in the case study are - "Social platforms".

Value Chain Definition


Porter’s Value Chain is a powerful strategic managmement tool that leaders at Lionsgate Hunger can use to
disaggregate Lionsgate Hunger strategic activities and organize them in a way that can deliver the firm
competitive advantage in its industry through either higher prices or through lower costs.

Case Study Overview


After the successful release of the first Hunger Games film in 2012, the film's distributor, Lionsgate, was
preparing to release the next movie in the series, Hunger Games: Catching Fire. Fan expectations had grown
after the success of Hunger Games and Lionsgate faced the challenge of keeping moviegoers interested and
engaged in another Hunger Games movie. In an era marked by the rising popularity of digital and social media,
Lionsgate knew that attracting fans to a sequel meant pushing the boundaries of traditional marketing tactics.
Digital brand storytelling is about using digital media in a holistic way to tell a brand story and build excitement
for an audience. Brand storytelling seeks to make a connection with the audience by giving them an emotional
experience that resonates with them. While Lionsgate was aware that traditional marketing would need to be
blended with a digital campaign to bring in moviegoers, it also needed to strike a careful balance between the
two and choose the appropriate platforms to tell a cohesive story. Should Lionsgate launch a brand storytelling
campaign to appeal to fans? Lionsgate's comparatively small marketing team gathered to brainstorm about how
to execute such a campaign and position the film for another big success.

Authors :: Mohanbir Sawhney, Pallavi Goodman

Category :: Sales & Marketing

Key Words :: Social platforms


Porter Value Chain Framework
Value Chain is developed by management guru Michael E. Porter and it was a major breakthrough in business
world for analyzing a firm’s relative cost and value. Value Chain was first introduced in 1985 in Harvard
Business Review article and Porter’s book “Competitive Advantage”. Value Chain is also known as “Porter’s
Value Chain Framework” and it is extensively used to analyze relevant activities of a firm to shed light on the
sources of competitive advantage. According to Michael Porter – Competitive Advantage is a relative term and
has to be understood in the context of rivalry within an industry.

Porter Five Forces & Porter Value Chain


Porter started with the quintessential question – “Why are some companies more profitable than others?” He
answered the question in two parts – How companies benefit or limited by the structure of their industry, and
second a firm’s relative position within that industry. To conduct industry structure analysis Porter developed
Five Forces Model, and to understand the sources of competitive advantage of the firm in relation to competitors
in that industry Porter developed Value Chain Analysis Method. The strengths of the Porter’s Value Chain
Analysis are - how it disaggregates various activities within the firm and how it put value to value creating
activities in an industry wide context.

Industry Structure Relative Position


Porter's Framework Five Forces Value Chain
The Analysis focuses Drivers of Industry Profitability Differences in activities
on
The Analysis explains Industry average price and cost Relative Price and Cost

What is Competitive Advantage?


According to Michael Porter – “If a strategy is to have real meaning then it should reflect directly into a
company’s financial performance”. If Lionsgate Hunger have a real competitive advantage, it means that
compared to its rivals Lionsgate Hunger is - operating at lower costs, commanding a premium price, or doing
both. Competitive advantage is about superior performance and it is a relative term. When all rivals in the
Lionsgate Hunger’s industry try to compete on the same dimension, no one firm gains a competitive advantage.
Key Steps in Porter's Value Chain Analysis
Step 1 - Start by laying out the industry value chain Step 3 - Zero in on price drivers, those activities
that have a high current or potential impact on
differentiation
Compare the value chains of rivals in an industry to
understand differences in prices and costs How far Align price drivers in the value chain. Often price
upstream or downstream do the industry’s activities drivers are customer expectations that customers are
extend? What are the key value-creating activities willing to pay more for. For example customers are
at each step in the chain? willing to pay more for flawless uniform experience
in Apple products even though Apple products are
Step 2 - Compare firm in The Hunger Games: not the cutting edge products.
Catching Fire: Using Digital and Social Media for
Brand Storytelling case study value chain to the Step 4 - Zero in on cost drivers, paying special
attention to activities that represent a large or
industry’s value chain growing percentage of costs

If the strategy dictates cutting cost to be profitable


Present vs Alternative Value Chain - You should then Lionsgate Hunger should focus on areas that
design an alternative value chain and map out areas are not adding value to customers' expectations, and
costs that are there because of operational
where improvements can be made. Comparing two inefficiencies
or more alternative value chains can provide a good
insight into bottlenecks within the industry.

.
Value Chain Analysis of The Hunger Games: Catching Fire: Using Digital and
Social Media for Brand Storytelling Case Study

VALUE CHAIN AND VALUE SYSTEM

Lionsgate Hunger value chain is part of a larger value system of the industry that includes companies either
upstream (suppliers) or downstream (distribution channels), or both. Manager at The Hunger Games: Catching
Fire: Using Digital and Social Media for Brand Storytelling needs to see each activity as part of that value system
and how adding each activity or reducing each activity impact the The Hunger Games: Catching Fire: Using
Digital and Social Media for Brand Storytelling value chain. The decision is regarding where to sit in the value
system.

VALUE CHAIN ACTIVITIES – PRIMARY ACTIVITIES & SUPPORT ACTIVITIES

As per the Value Chain model there are broadly two generic categories of activities – Primary Activities and
Supporting Activities.

What are Primary Activities in Porter’s Value Chain?

As illustrated in the Value Chain diagram, Lionsgate Hunger has five generic categories of primary activities –

INBOUND LOGISTICS

These activities of Lionsgate Hunger are associated with receiving, storing and disseminating the inputs of the
products. It can include material handling, warehousing of physical products, as well as architecture to receive
and store customer information for digital media company. Lionsgate Hunger at present has outsourced most of
its inbound logistics activities.

OPERATIONS

Activities that help the organization to transform raw material into finished products. For the purpose of this
article the definition is broad – it can mean moulding plastic to make products, using customer data to serve
advertisements based on usage behavior to clients etc.
OUTBOUND LOGISTICS

Lionsgate Hunger under takes these activities to distribute the finished products to channel partners and final
buyers. Outbound logistics activities include – processing, scheduling, distribution network, warehousing, and
wholesalers and retailers order fulfillment.

MARKETING AND SALES

These activities are undertaken by Lionsgate Hunger to create means through which the buyer can buy a firm’s
products. These activities include – advertising and promotion, pricing, channel selection, sales force
management, marketing etc.

SERVICES

Lionsgate Hunger needs to provide after sales services and maintenance for successful usage of the product.
Service activities of Lionsgate Hunger can include – product forward and backend alignment of software,
training, part supply, post sales maintenance, and installation services.

What are Support Activities in Lionsgate Hunger Value Chain?

As the name explains, Support Activities of Lionsgate Hunger are the one that supports the firm’s Primary
Activities. Porter divided the Support Activities into four broad categories and each category of support activities
is divisible into a number of distinct value activities that are specific to the industry in which Lionsgate Hunger
operates. The four generic support activities are –

FIRM INFRASTRUCTURE

Firm infrastructure support activities at Lionsgate Hunger consists activities such as – quality management,
general management, legal services, planning and finance and accounting. Firm infrastructure activities at
Lionsgate Hunger supports entire value chain though the scope varies given that Lionsgate Hunger is a
diversified company even within the industry. For example the finance and planning at Lionsgate Hunger are
managed at corporate level while quality management, accounting and legal issues are managed at business unit
level.
HUMAN RESOURCES MANAGEMENT

In an environment where each organization is striving to become a learning organization, Human Resources
Management is key to the success of any organization. HRM support activities include – Recruiting, Selection,
People Planning, Training & Development, Skill Assessment, Hiring and Compensation at both business unit
level and corporate level. Human resource management affects competitive advantage in any firm, but in some
industries it is defining factor. For example in the consulting companies HR is the main source of competitive
advantage.

TECHNOLOGY DEVELOPMENT

Technology supports almost all activities in modern day organization. In the technology industry, technology
development has become a source of competitive advantage. Technology development at Lionsgate Hunger may
include activities such as - feature design, process engineering, field-testing, technology selection, and
component design.

PROCUREMENT ACTIVITIES AT LIONSGATE HUNGER

Procurement activities at Lionsgate Hunger include activities that are undertaken to purchase inputs that are used
by Lionsgate Hunger’s value chain. It doesn’t include purchase inputs themselves. Purchased inputs may include
- raw materials, supplies, machinery, laboratory equipment, office equipment, and buildings.
Like all other value chain activities procurement also employs technology for things such as – procedures, vendor
management, information system, and supply chain partner qualification rules and ongoing performance
evaluation.

Metrics and KPIs to Avoid while Analyzing The Hunger Games: Catching Fire:
Using Digital and Social Media for Brand Storytelling Value Chain

Growth or market share is also not a very reliable goal as often firms end up pursuing market share at the cost
of profitability. Shareholder value, measured by stock price, is not a good barometer to analyze value chain. It
is preferred by top management but it is only useful in long run rather than competitive strategy in short to
medium terms. Growth in sales is not a good goal for value chain analysis as every managers know that boosting
sales is easy to do by reducing the prices dramatically.
The Hunger Games: Catching Fire: Using Digital and Social
Media for Brand Storytelling SWOT Analysis / SWOT Matrix
SWOT Analysis / Matrix solution of The Hunger Games: Catching Fire: Using Digital and Social Media for Brand
Storytelling case study by Blue Ocean University includes the four key SWOT elements - Strengths, Weaknesses,
Opportunities, & Threats. The Hunger Games: Catching Fire: Using Digital and Social Media for Brand Storytelling
("Lionsgate Hunger") is a Harvard Business Case Study written by Mohanbir Sawhney, Pallavi Goodman. Blue
Ocean University provides - SWOT analysis, strategic management case study solution, and assignment help.

What is SWOT analysis? What are the major elements of SWOT analysis?

SWOT Analysis is a strategic methodology to analyze the - Strengths & Weaknesses that Lionsgate Hunger
possess, and Opportunities & Threats that the organization faces because of competitive and macro-economic
factors.

SWOT analysis provides key insights into both internal and external factors that can impact the performance of
an organization. It can help the management of the organization to optimize performance, look for new
opportunities, manage competition, maximize return on resources employed, and minimization of various
business and policy making risks.

Case Study Overview

After the successful release of the first Hunger Games film in 2012, the film's distributor, Lionsgate, was
preparing to release the next movie in the series, Hunger Games: Catching Fire. Fan expectations had grown
after the success of Hunger Games and Lionsgate faced the challenge of keeping moviegoers interested and
engaged in another Hunger Games movie. In an era marked by the rising popularity of digital and social media,
Lionsgate knew that attracting fans to a sequel meant pushing the boundaries of traditional marketing tactics.
Digital brand storytelling is about using digital media in a holistic way to tell a brand story and build excitement
for an audience. Brand storytelling seeks to make a connection with the audience by giving them an emotional
experience that resonates with them. While Lionsgate was aware that traditional marketing would need to be
blended with a digital campaign to bring in moviegoers, it also needed to strike a careful balance between the
two and choose the appropriate platforms to tell a cohesive story. Should Lionsgate launch a brand storytelling
campaign to appeal to fans? Lionsgate's comparatively small marketing team gathered to brainstorm about how
to execute such a campaign and position the film for another big success.
What should be included in a SWOT analysis of The Hunger Games: Catching Fire: Using
Digital and Social Media for Brand Storytelling?

There are four major elements / components of SWOT analysis - Strengths, Weaknesses, Opportunities, and
Threats. Lionsgate Hunger can divide these four elements into two broad categories - Internal Factors and
External Factors.

Opportunities Threats

Strengths Strength Opportunities (SO) Strategies Strength Threats (ST) Strategies

Leveraging brand recognition in new segments Investing into R&D to thwart Sales & Marketing
industry disruptors.

Weaknesses Weakness Opportunities (WO) Strategies Weaknesses Threats (WT) Strategies

Investing into customer oriented services and Get out of the business and focus on growth areas
supply chain

STRENGTHS OF THE HUNGER GAMES: CATCHING FIRE: USING DIGITAL


AND SOCIAL MEDIA FOR BRAND STORYTELLING

WHAT ARE "STRENGTHS" IN SWOT ANALYSIS?

Strengths are the firm's capabilities and resources that it can use to design, develop, and sustain competitive
advantage in the marketplace

- Market Leadership Position - Lionsgate Hunger has a strong market leadership position in the Sales &
Marketing industry. It has helped the company to rapidly scale new products successes.
- High margins compare to Sales & Marketing industry's competitors - Even though Lionsgate Hunger is facing
downward pressure on profitability, compare to competitors it is still racking in higher profit margins.

- Brands catering to different customers segments within Social platforms segment - Lionsgate Hunger
extensive product offerings have helped the company to penetrate different customer segments in Sales &
Marketing segment. It has also helped the organization to diversify revenue streams.

- Track record of innovation - Even though most players in the Sales & Marketing strive to innovate, Lionsgate
Hunger has successful record at consumer driven innovation.

- Wide geographic presence - Lionsgate Hunger has extensive dealer network and associates network that not
only help in delivering efficient services to the customers but also help in managing competitive challenges in
Sales & Marketing industry.

- First mover advantage in the increasingly crowded market place. The new products are rapidly increasing
Lionsgate Hunger market share in the Sales & Marketing industry.

WEAKNESSES OF THE HUNGER GAMES: CATCHING FIRE: USING DIGITAL


AND SOCIAL MEDIA FOR BRAND STORYTELLING

WHAT ARE "WEAKNESSES" IN SWOT ANALYSIS?

Weaknesses in case study The Hunger Games: Catching Fire: Using Digital and Social Media for Brand
Storytelling can either be absence of strengths or resources of capabilities that are required but at present the
organization doesn't have. Managers have to be certain if the weakness is present because of lack of strategic
planning or as a result of strategic choice.

- Loyalty among suppliers is low - Based on the evidence provided in the case study The Hunger Games:
Catching Fire: Using Digital and Social Media for Brand Storytelling it seems that there is low level of allegiance
among the members of supply chain parteners.
- Gross Margins and Operating Margins which could be improved and going forward may put pressure on
the Lionsgate Hunger financial statement.

- Business Model of Lionsgate Hunger can be easily imitated by the competitors in the industryname industry.
To overcome these challenges companyname needs to build a platform model that can integrate suppliers,
vendors and end users.

- Declining market share of Lionsgate Hunger with increasing revenues - the Sales & Marketing industry is
growing faster than the company. In such a scenario Lionsgate Hunger has to carefully analyze the various trends
within the Social platforms sector and figure out what it needs to do to drive future growth.

- Extra cost of building new supply chain and logistics network - Internet and Artificial Intelligence has
significantly altered the business model in the Social platforms industry and given the decreasing significance
of the dealer network Lionsgate Hunger has to build a new robust supply chain network. That can be extremely
expensive.

- High cost of replacing existing experts within the organization. Few employees are responsible for the
Lionsgate Hunger's knowledge base and replacing them will be extremely difficult in the present conditions.

OPPORTUNITIES - THE HUNGER GAMES: CATCHING FIRE: USING DIGITAL


AND SOCIAL MEDIA FOR BRAND STORYTELLING

WHAT ARE "OPPORTUNIT IES" IN SWOT ANALYSIS?

Opportunities are potential areas where the firm chan identify potential for - growth, profits, and market share.

- Opportunities in Online Space - Increasing adoption of online services by customers will also enable
Lionsgate Hunger to provide new offerings to the customers in Social platforms industry.

- Trend of customers migrating to higher end products - It represents great opportunity for Lionsgate Hunger,
as the firm has strong brand recognition in the premium segment, customers have experience with excellent
customer services provided by Lionsgate Hunger brands in the lower segment. It can be a win-win for the
company and provides an opportunity to increase the profitability.

- Local Collaboration - Tie-up with local players can also provide opportunities of growth for the Lionsgate
Hunger in international markets. The local players have local expertise while Lionsgate Hunger can bring global
processes and execution expertise on table.

- Lowering of the cost of new product launches through third party retail partners and dedicated social
network. Lionsgate Hunger can use the emerging trend to start small before scaling up after initial success of a
new product.

- Increasing government regulations are making it difficult for un-organized players to operate in the Social
platforms industry. This can provide Lionsgate Hunger an opportunity to increase the customer base.

- Rapid Expansion of Economy As the US economy is improving faster than any other developed economy, it
will provide Lionsgate Hunger an opportunity to expand into the US market. Lionsgate Hunger already have
know-how to operate into the competitive US market.

THREATS IN THE HUNGER GAMES: CATCHING FIRE: USING DIGITAL AND


SOCIAL MEDIA FOR BRAND STORYTELLING CASE STUDY

WHAT ARE "THREATS" IN SWOT ANALYSIS?

Threats are factors that can be potential dangers to the firm's business models because of changes in macro
economic factors and changing consumer perceptions. Threats can be managed but not controlled.

- Saturation in urban market and stagnation in the rural markets - For The Hunger Games: Catching Fire:
Using Digital and Social Media for Brand Storytelling this trend is an ongoing challenge in the Sales &
Marketing segment. One of the reasons is that the adoption of products is slow in rural market. Secondly it is
more costly for The Hunger Games: Catching Fire: Using Digital and Social Media for Brand Storytelling to
serve the rural customers than urban customers given the vast distances and lack of infrastructure.
- Trade Relation between US and China can affect Lionsgate Hunger growth plans - This can lead to full scale
trade war which can hamper the potential of Lionsgate Hunger to expand operations in China.

- Distrust of institutions and increasing threat of legal actions for Lionsgate Hunger - As the WTO regulations
and laws are difficult to enforce in various markets. Legal procedures have become expensive and long drawn
process. It can lead to less investment into emerging markets by Lionsgate Hunger thus resulting in slower
growth.

- Growing technological expertise of local players in the export market - One of the biggest threat of tie-up
with the local players in the export market for The Hunger Games: Catching Fire: Using Digital and Social
Media for Brand Storytelling is threat of losing IPR. The intellectual property rights framework is not very strong
in emerging markets especially in China.

- Competitors catching up with the product development - Even though at present the Lionsgate Hunger is
still leader in product innovation in the Sales & Marketing segment. It is facing stiff challenges from international
and local competitors.

- Changing political environment with US and China trade war, Brexit impacting European Union, and overall
instability in the middle east can impact Lionsgate Hunger business both in local market and in international
market.
How do you conduct SWOT Analysis? What SWOT analysis
explains?

Objectives of Performing SWOT analysis at The Hunger Games: Catching Fire: Using Digital and
Social Media for Brand Storytelling for Sales & Marketing Segment

SWOT analysis is one of the most widely used tools for strategic analysis. According to a research done by
Harvard Business School – more than 75% of the leaders in strategy department had used SWOT analysis for
the purpose of strategic analysis. Strategists at Lionsgate Hunger can utilize SWOT for following objectives -

Using SWOT for Strategic Planning at The Hunger Games: Catching Fire: Using Digital and
Social Media for Brand Storytelling

Over the years the nature of the strategic planning has changed in the Sales & Marketing. leaders utilize SWOT
not only for short term planning but also for long term strategic planning. It will provide the leaders with a better
understanding of market, organization, and competitors.

Using SWOT for Performance Improvements

In the short term SWOT is an effective tool to improve business processes, part of business, or both together.
SWOT helps Lionsgate Hunger managers to identify areas of weakness in operations in the organization.
Managing and eliminating these weaknesses can drive future growth of Lionsgate Hunger.

Using SWOT analysis for Venture Feasibility, New Project Viability & New Product Launch

Project management and feasibility analysis have become more specialized. SWOT analysis can still help leaders
at Lionsgate Hunger to work out the pros and cons of new project, initial viability and long term scope keeping
in the competitors’ strategy and macro environment development.

Using SWOT to Thwart Competitive Challenges

Often leaders neglect trends in macro environment because of the narrow focus on the industry. It can happen to
Lionsgate Hunger in the Social platforms at the present moment. To manage these competitive challenges and
macro environment trends leaders at The Hunger Games: Catching Fire: Using Digital and Social Media for
Brand Storytelling can use SWOT to pinpoint specific threats and allocate requisite resources to deal with those
threats.

Using SWOT Analysis to Set Corporate Goals & Key Objectives

The easiest objective for which SWOT analysis can be used by Lionsgate Hunger is for setting strategic goals,
defining key objective areas and desired results. This can lead to a time based SWOT analysis exercise where
Lionsgate Hunger leaders conduct SWOT at a fixed interval and assess what it needs to tinker to achieve the
stated goals.

Steps to conduct The Hunger Games: Catching Fire: Using


Digital and Social Media for Brand Storytelling SWOT Analysis
Clearly defining the objectives of the SWOT analysis. Leaders should define the appropriate scope for the
analysis. If the scope is too broad then SWOT analysis won’t able to highlight internal factors and if the scope
is kept too narrow then managers can miss the macro environment opportunities and threats.

Try to substantiate the strengths, weaknesses as objectively as possible in terms of what the Lionsgate Hunger
does, how it does it, and where are there scope of improvements.

Leaders in the case study The Hunger Games: Catching Fire: Using Digital and Social Media for Brand
Storytelling can also use SWOT analysis to understand how key strengths can be extended either to adjacent
areas or new industries all together.

Analyzing the macro trends from not only Sales & Marketing industry perspective but from a more holistic
perspective. It will provide better clues regarding where customers are going and what trends the firm can
leverage.

“ Key considerations to write a good SWOT Analysis of Case Study The Hunger Games: Catching
Fire: Using Digital and Social Media for Brand Storytelling “

- Provide proper weightage to the various factors that drive Lionsgate Hunger topline and bottomline growth.
- Defining what skills are essential for the survival of the Lionsgate Hunger in Sales & Marketing industry.

- What strategies Lionsgate Hunger can employ to diversify the risks emerging from the weaknesses of
organization and threats from the macro environment.

- Isolate the strengths and weaknesses of the Lionsgate Hunger as much as possible.

- Are there people extremely critical to organization that can tilt the balance between strengths and weaknesses
of the company.

How often the firm in The Hunger Games: Catching Fire: Using Digital and Social Media
for Brand Storytelling case study should conduct SWOT Analysis?

The frequency of conducting SWOT analysis depends upon the objectives of the company and rate of change in
the industry it operates in. The firm in The Hunger Games: Catching Fire: Using Digital and Social Media for
Brand Storytelling case study should conduct SWOT analysis after every 2-3 years.

What is the difference between SWOT Analysis and PESTEL Analysis of The Hunger
Games: Catching Fire: Using Digital and Social Media for Brand Storytelling

PESTEL, a complementary tool to SWOT, expands on the analysis of external context by looking in detail at
specific types of issues that frequently have an impact on implementation of project/ initiatives.
PESTEL / PEST Analysis of The Hunger Games: Catching Fire: Using
Digital and Social Media for Brand Storytelling
The PESTEL / PEST Analysis of The Hunger Games: Catching Fire: Using Digital and Social Media for Brand
Storytelling ("Lionsgate Hunger") will cover all macro environment factors that impact Lionsgate Hunger - political
factors, economic factors, social factors, technological factors, environmental factors and legal factors. The Hunger
Games: Catching Fire: Using Digital and Social Media for Brand Storytelling is Sales & Marketing Harvard Business
School case study written by Mohanbir Sawhney, Pallavi Goodman.

What is PESTEL Analysis and How it can be used for The Hunger Games: Catching
Fire: Using Digital and Social Media for Brand Storytelling Case Study?

PESTEL Analysis is a strategic management tool that "Lionsgate Hunger" strategy makers can use to analyze
internal and external factors that impact the situations in The Hunger Games: Catching Fire: Using Digital and
Social Media for Brand Storytelling . PESTEL stands for – Political, Social, Economic, Technological,
Environmental and Legal factors that impact the macro environment of the organization that it operates in.

Lionsgate Hunger operates in a dynamic environment where it is influenced by – government decisions,


consumer spending behavior, increasing environmental activism among consumers, increasing regulatory
framework for environmental factors, technological changes, regulatory framework, collective social trends, and
ever evolving legal system.

Case Study Overview

After the successful release of the first Hunger Games film in 2012, the film's distributor, Lionsgate, was
preparing to release the next movie in the series, Hunger Games: Catching Fire. Fan expectations had grown
after the success of Hunger Games and Lionsgate faced the challenge of keeping moviegoers interested and
engaged in another Hunger Games movie. In an era marked by the rising popularity of digital and social media,
Lionsgate knew that attracting fans to a sequel meant pushing the boundaries of traditional marketing tactics.
Digital brand storytelling is about using digital media in a holistic way to tell a brand story and build excitement
for an audience. Brand storytelling seeks to make a connection with the audience by giving them an emotional
experience that resonates with them. While Lionsgate was aware that traditional marketing would need to be
blended with a digital campaign to bring in moviegoers, it also needed to strike a careful balance between the
two and choose the appropriate platforms to tell a cohesive story. Should Lionsgate launch a brand storytelling
campaign to appeal to fans? Lionsgate's comparatively small marketing team gathered to brainstorm about how
to execute such a campaign and position the film for another big success.
The Hunger Games: Catching Fire: Using Digital and Social Media for Brand
Storytelling PESTEL / PEST Analysis

WHAT ARE POLITICAL FACTORS IN PESTEL ANALYSIS?

Political factors are often related to the level of intervention and nature of intervention of the local and national
government in the business and economic environment. Government policies and governance system plays a
huge role in nature and objectives of the policies.

Political Factors that Impact The Hunger Games: Catching Fire: Using Digital and
Social Media for Brand Storytelling

- Importance of local governments in Sales & Marketing – Local government plays an integral role in policy
setting and business environment regulations in the sector. Lionsgate Hunger should closely monitor and lobby
these changes.

- Other stakeholders such as non-government organizations, protest & pressure groups, activist movements play
critical role in policy making in Sales & Marketing. Lionsgate Hunger should closely collaborate with these
organizations so that it can contribute better to the community goals as well as with corporate goals.

- Armed Conflict – Based on the evidences provided in The Hunger Games: Catching Fire: Using Digital and
Social Media for Brand Storytelling case study, there is very little change of armed conflict impacting Lionsgate
Hunger business.

- Based on data it seems that Lionsgate Hunger has come under increasing global pressures to adhere to
international regulations.

- Governance System – The present governance system in the industry is facing challenges and Lionsgate Hunger
has to keep a close eye on the change in policies specified in the The Hunger Games: Catching Fire: Using
Digital and Social Media for Brand Storytelling case study.

- Regulatory Practices – Lionsgate Hunger has to manage diverse regulations in the various markets it is present
in. Over the last few years Sales & Marketing has witnessed an increasing regulatory scrutiny.
WHAT ARE ECONOMIC FACTORS?

Economic factors includes – the stage of economy of countryname, consumer disposable income, interest rate,
labor market conditions , inflation rate, exchange rate, economic performance of countryname, taxation rate etc.

Economic Factors that Impact "The Hunger Games: Catching Fire: Using Digital and Social
Media for Brand Storytelling" PESTEL Analysis

- Downward pressure on consumer spending – Even though the consumer disposable income has remain stable,
the growing inequality in the society will negatively impact consumer sentiment and thus impact consumer
spending behavior.

- Efficiency of financial markets – Lionsgate Hunger can access vibrant financial markets and easy availability
of liquidity in the equity market to expand further globally.

- Government intervention in the Sales & Marketing sector can impact the fortunes of the Lionsgate Hunger and
its competitors.

- Economic Cycles – The performance of Lionsgate Hunger in Sales & Marketing is closely correlated to the
economic performance of the country it is present in.

- Exchange rate – Based on the data in The Hunger Games: Catching Fire: Using Digital and Social Media for
Brand Storytelling , the volatile exchange rate can impact Lionsgate Hunger investment plans not only in the
short term but also in the long run.

- Skill level of workforce the present market – Lionsgate Hunger can leverage good skill level of employees in
the present market to not only improve services in Sales & Marketing but also leverage those skills to create
global opportunities.
WHAT ARE SOCIAL FACTORS?

Each society and culture has its own way of doing business. These social factors can not only help companies
like "Lionsgate Hunger" to better understand the way of doing business but also in understanding the customer
preferences in the market it operates in. Social factors include – traditions, acceptance of entrepreneurial spirit,
gender roles, health & safety attitudes, societal roles and norms, demographics, attitude towards certain products
and services, culture, and leisure interests.

Social Factors that Impact The Hunger Games: Catching Fire: Using Digital and Social
Media for Brand Storytelling Case Study Solution

- Access to essential services – According to The Hunger Games: Catching Fire: Using Digital and Social Media
for Brand Storytelling case study - In the last decade and half the wider population in getting access to essential
services. This has been a result of increasing investment in public services.

- Societal norms and hierarchy – the society as portrayed in the The Hunger Games: Catching Fire: Using Digital
and Social Media for Brand Storytelling case study is different from the home market of Lionsgate Hunger. It
should strive to build a local team that understands the societal norms and attitudes better to serve the customers

- Power structure – There is an increasing trend of income inequality in Lionsgate Hunger's most prominent
market. This has altered the power structure that has been persistent in the society for over last 6-7 decades.

- Education level – The education level is high in the Lionsgate Hunger existing markets. Based on evidences in
The Hunger Games: Catching Fire: Using Digital and Social Media for Brand Storytelling case study, you can
suggest building a R&D center in the local market

- Demographics – For the Sales & Marketing sector, Lionsgate Hunger has demographics on its side.

- Leisure interests – the customers that Lionsgate Hunger targets give a very high preferences to experiential
products and services. The firm needs to spend more energy to meet the preferences and expectations.
WHAT ARE TECHNOLOGICAL FACTORS IN PESTEL ANALYSIS?

Technology is fast disrupting various industries and Sales & Marketing is no different. Some of the technological
factors that are impacting the firm are– access to greater information, rate of technology driven change,
population access to technology, supply chain disruption because of technology, nnovation in product offerings,
access to mobile phones driving empowerment, innovation in customer services etc.

Technological Factors that Impact The Hunger Games: Catching Fire: Using Digital and
Social Media for Brand Storytelling PESTEL Analysis

- Maturity of technology – Based on data in The Hunger Games: Catching Fire: Using Digital and Social Media
for Brand Storytelling case study, the technology in the sector is still at nascent stage and most players are vying
for new innovations that can enable them to garner higher market share.

- Developments and dissemination of mobile technology has transformed customer expectations in the Sales &
Marketing sector. Lionsgate Hunger has to not only meet and manage these expectations but also have to
innovate to stay ahead of the competition.

- Technological innovation is fast disrupting the supply chain model of Lionsgate Hunger as it is providing
greater access to information to channel partners, leading to higher profit sharing.

- 5G and its potential – Lionsgate Hunger has to keep a close eye on the development and enhancement of user
experience with increasing speed and access. This can completely transform the customer user experience in the
Sales & Marketing industry.

- Research and development investment at both macro level and micro level in Sales & Marketing is increasing.
It can lead to industrywide disruption through innovation of new products & services.

- Technology transfer and licensing issues for Lionsgate Hunger – In the Social platforms sphere there is no
strong culture of technology transfer and companies often are reluctant to transfer or license technologies for the
fear of creating competitors out of collaborators.
WHAT ARE ENVIRONMENTAL FACTORS IN PESTEL ANALYSIS?

Over the last decade sustainability and environmental factors are becoming critical for businesses. Government
and pressure groups are fast asking organizations to adhere to environmental standards. Some of the
environmental factors are – increasing focus on sustainability, safe waste disposal, limiting carbon footprints,
safe disposal of hazardous material, safe water treatment, insurance policies, laws regulating pollution, climate
change etc.

Environmental Factors that Impact The Hunger Games: Catching Fire: Using Digital and
Social Media for Brand Storytelling PESTEL Analysis

- Recycling is fast emerging as a norm rather than a -good thing to do- in many economies. Lionsgate Hunger
has to make plans to adhere to regulations and meet consumer expectations in the Sales & Marketing sector.

- Renewable technology is also another interesting area for Lionsgate Hunger. It can leverage the trends in this
sector. Many governments are providing subsidies to invest in the renewable sector.

- Waste management especially for units close to the urban cities has taken increasing importance for players
such as Lionsgate Hunger. Government are fast coming up with strict norms for waste management in the urban
areas.

- Regular scrutiny by environmental agencies is also adding to the cost of operations of the Lionsgate Hunger.

- Customer activism – Greater awareness among customers have also put environmental factors at the center of
Lionsgate Hunger strategy. Customers expects Lionsgate Hunger to adhere to not only legal standards but also
to exceed them to become responsible stakeholder in the community.

- Paris Climate Agreement has put real targets for the national governments. This can result in greater scrutiny
of environmental standards for Lionsgate Hunger in both developed and emerging markets.
WHAT ARE LEGAL FACTORS IN PESTEL ANALYSIS?

Legal plays a critical role in any country. Lionsgate Hunger management has to consider following legal factors
before entering international market – intellectual property rights protection, data protection laws, discrimination
laws, copyrights law, biasedness toward home players, system of justice, time taken to deliver justice etc.

Legal Factors that Impact The Hunger Games: Catching Fire: Using Digital and Social
Media for Brand Storytelling PESTEL Analysis

- Environment Laws and guides – The level of environmental laws in the country and what Lionsgate Hunger
needs to do to meet those laws and regulations.

- Legal protection of intellectual property, patents, copyrights, and other IPR rights in various countries. How
Lionsgate Hunger will be impacted if there is not enough protection.

- Health and safety norms in the the country and what Lionsgate Hunger needs to do to meet those norms and
what will be the cost of meeting those norms.

- Data protection laws – Over the last decade data protection has emerged as critical part of not only privacy
issues but also intellectual property rights. Lionsgate Hunger has to consider whether the country have a robust
legal and technological mechanism to protect against data breaches or not.

- Time take for business cases in court – some countries even though follow international norms but the time for
resolution often run in years. Lionsgate Hunger has to carefully consider average time of specific cases before
entering an international market.

- Employment law in the country and how they are impacting the business model of the Sales & Marketing
sector. Can these conditions be replicated or bettered in international market?
References for The Hunger Games: Catching Fire: Using Digital and Social Media for Brand
Storytelling Porter Value Chain Analysis

The Hunger Games: Catching Fire: Using Digital and Social Media for Brand Storytelling , Harvard Business
Review Case Study. Published by HBR Publications.

Michael E. Porter (1985) "The Value Chain & Competitive Advantage - Understanding Business Processes".

Michael E. Porter (2004) "Competitive Advantage: Creating and Sustaining Superior Performance"

Barney, J. B. (1995) "Looking Inside for Competitive Advantage". Academy of Management Executive, Vol. 9,
Issue 4, pp. 49-61

O. E. Williamson, "Markets and Hierarchies"(New York: Free Press, 1975)


References Books on The Hunger Games: Catching Fire: Using Digital and Social Media for Brand
Storytelling SWOT Analysis

Mohanbir Sawhney, Pallavi Goodman (2018), "The Hunger Games: Catching Fire: Using Digital and Social
Media for Brand Storytelling Harvard Business Review Case Study. Published by HBR Publications.

Euromonitor (2018), "Sales & Marketing Sector Analysis ", Published in 2018.

A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)

L. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business School, 1970)

M. E. Porter, Competitive Strategy(New York: Free Press, 1980)

O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)

R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation,
Strategic Management Journal7 (1986)
References for The Hunger Games: Catching Fire: Using Digital and Social Media for Brand
Storytelling Case Study PESTEL / PEST Analysis

Mohanbir Sawhney, Pallavi Goodman (2018), "The Hunger Games: Catching Fire: Using Digital and Social
Media for Brand Storytelling Harvard Business School Case Study, Published by Harvard Business
Publications.

Euromonitor (2018), "Sales & Marketing Sector Analysis ", Published in 2018.

A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)

L. Wrigley, Divisional Autonomy and Diversification (PhD, Harvard Business School, 1970)

M. E. Porter, Competitive Strategy(New York: Free Press, 1980)

O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)

R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation,
Strategic Management Journal7 (1986)