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Home , Aditya Chopra, Adoor Gopalakrishnan, Anurag Kashyap, Awaara, Cinema of India, Deewaar

Capstone Project Country entering strategy ( Industry)

Submitted To By Dr. MR Suresh Group C5 Akheel M Baramy 11062 Arun Thomas 11066 Aditya Koyya 11121 Arunav Bora 11126 Asit Kumar Panigrahy 11128 NI 11140

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Table of Contents 1. Introduction to the Indian ...... 3

2. Company Overview: Raj ...... 7

3. SWOT Analysis of ...... 9

4. VRIO Framework ...... 10

5. Country Selection process ...... 11

6. Class of 2010 model ...... 21

7. Chinese film market ...... 23

8. Ecnomic Analysis of ...... 31 8.1 Economic Analysis of China in terms of Film Industry: ...... 32

9. Market Audit: ...... 33

10. Porterr’s Five force Model ...... 35

11. Pressure groups: Host and home country ...... 38

12. Marketing Plan for Entering Peoples Republic of China ...... 41

13 Conclusion ...... 45

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1. Introduction to the Indian Film Industry The cinema of has had a profound effect on cinema across the world since the early 20th century. It consists of films produced across India, which includes the cinematic cultures of , Assam, Bihar, , Haryana, Jammu and Kashmir, , , , , Orissa, Punjab, , , and . Indian films came to be followed throughout Southern , the Greater , , and the former . The cinema as a medium gained popularity in the country, as many as 1,000 films in various were produced annually.

In the 20th century, Indian cinema, along with the Hollywood and Chinese film industries, became a global enterprise. At the end of 2010 it was reported that in terms of annual film output, India ranks first, followed by Hollywood and China. Enhanced technology paved the way for upgrading from established cinematic norms of delivering product, altering the manner in which content reached the target audience. Visual effects based Super hero and Science fiction films like , , Ra.One and emerged as blockbusters. Indian cinema found markets in over 90 countries where films from India are screened.

India is the world's largest producer of films. In 2009, India produced a total of 2961 films on celluloid that include a staggering figure of 1288 feature films. The provision of 100% foreign direct investment has made the Indian film market attractive for foreign enterprises such as 20th Century Fox, , and Warner Bros. Indian enterprises such as Zee, UTV, , Adlabs and Sun Network's also participated in producing and distributing films. Tax incentives to multiplexes have aided the multiplex boom in India. By 2003 as many as 30 film production companies had been listed in the National Stock Exchange of India, making the commercial presence of the medium felt.

1.1 Golden Age of Indian cinema

Following India's independence, the period from the late 1940s to the 1960s is regarded by film historians as the 'Golden Age' of Indian cinema. Some of the most critically acclaimed Indian films of all time were produced during this period. This period saw the emergence of a new movement, mainly led by Bengali cinema.

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Commercial cinema also began thriving; with examples of acclaimed films at the time include the films (1957) and (1959) and the films (1951) and (1955). These films expressed social themes mainly dealing with working-class urban life in India; Awaara presented the city as both a nightmare and a dream, while Pyaasa critiqued the unreality of city life. Indian films were frequently in competition for the Palme d'Or at the Cannes for nearly every year in the 1950s and early 1960s, with a number of them winning major prizes at the festival. also won the at the for (1956), the second part of , and the and two Silver Bears for Best Director at the International Film Festival.

1.2 Modern Indian cinema & International Recognition

The 1970s did, nevertheless, see the rise of commercial cinema in form of enduring films such as (1975), which solidified 's position as a lead actor. Another important film from 1975 was Deewar, directed by and written by Salim-Javed. A pitting "a policeman against his brother, a gang leader based on real-life smuggler ", portrayed by Amitabh Bachchan, it was described as being ―absolutely key to Indian cinema‖ by . 1979 Telugu film, Sankarabharanam, which dealt with the revival of , has won the Prize of the Public at the Besancon Film Festival of in the year 1981. 1987 film, Tabarana Kathe, which dealt with the inadequate governance, was screened at various film festivals including Tashkent, , Tokyo, and the Film Festival of Russia.

Long after the Golden Age of Indian cinema, 's cinema of Kerala regarded as one of the best Indian film genres experienced its own 'Golden Age' in the 1980s and early 1990s. Some of the most acclaimed Indian filmmakers at the time were from the Malayalam industry, including Gopalakrishnan, G. Aravindan, T. V. Chandran and Shaji N. Karun. , who is often considered to be Satyajit Ray's spiritual heir, directed some of his most acclaimed films during this period, including (1981) which won the at the Film Festival, as well as Mathilukal (1989) which won major prizes at the Venice Film Festival.

Shaji N. Karun's debut film (1989) won the Camera d'Or at the 1989 , while his second film (1994) was in competition for the Palme d'Or at the 1994 Cannes Film Festival. Commercial also began gaining popularity

[Type text] Page 4 with the action films of , a popular actor followed by , whose film Yodha was acclaimed for its action sequences and technical aspects.

Commercial Hindi cinema further grew throughout the 1980s and the 1990s with the release of films such as (1981) Mr India (1987), (1988), (1988), Chandni (1989), (1989), Baazigar (1993), (1993),[78] Dilwale Dulhaniya Le Jayenge (1995) and (1998), many of which starred Shahrukh Khan, and .

In the late 1990s, 'Parallel Cinema' began experiencing a resurgence in Hindi cinema, largely due to the critical and commercial success of Satya (1998), a low-budget film based on the underworld, directed by and written by . The film's success led to the emergence of a distinct genre known as Mumbai noir, urban films reflecting social problems in the city of Mumbai. Later films belonging to the Mumbai noir genre include 's (2001) and Traffic Signal (2007), Ram Gopal Varma's Company (2002) and its prequel D (2005), Anurag Kashyap's Black Friday (2004), Irfan 's Thanks Maa (2009), and Deva Katta's Prasthanam (2010).

Break-up of 2011 Indian feature films certified by the Central Board of Film Certification sorted by languages:

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1.3 Influences

There have generally been six major influences that have shaped the conventions of Indian popular cinema. The first was the ancient Indian epics of and which have exerted a profound influence on the thought and imagination of Indian popular cinema, particularly in its narratives. Examples of this influence include the techniques of a side story, back-story and . Indian popular films often have plots which branch off into sub-plots; such narrative dispersals can clearly be seen in the 1993 films Khalnayak and .

The second influence was the impact of ancient drama, with its highly stylized nature and emphasis on spectacle, where music, dance and gesture combined "to create a vibrant artistic unit with dance and mime being central to the dramatic experience." Sanskrit dramas were known as natya, derived from the root word nrit (dance), characterizing them as spectacular dance-dramas which has continued in Indian cinema.

The third influence was the traditional folk , which became popular from around the 10th century with the decline of Sanskrit theatre. These regional traditions include the of West Bengal, the of Uttar Pradesh, and the Terukkuttu of Tamil Nadu. The fourth influence was , which "blended and fantasy, music and dance, narrative and spectacle, earthy dialogue and ingenuity of stage presentation, integrating them into a dramatic discourse of .‖

The fifth influence was Hollywood, where musicals were popular from the 1920s to the 1950s, though Indian filmmakers departed from their Hollywood counterparts in several ways. "For example, the Hollywood musicals had as their plot the world of entertainment itself.

Like mainstream Indian popular cinema, Indian Parallel Cinema was also influenced also by a combination of Indian theatre (particularly Sanskrit drama) and (particularly ), but differs when it comes to foreign influences, where it is more influenced by European cinema (particularly Italian and French ) rather than Hollywood.

1.4 Film music

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Music in Indian cinema is a substantial revenue generator, with the music rights alone accounting for 4–5% of the net revenues generated by a film in India. The major film music companies of India are , Sony Music etc. Commercially, film music accounts for 48% India's net music sales. A typical Indian film may have around 5-6 choreographed songs spread throughout the film's length.

2. Company Overview: Yash Raj Films

Yash Raj Films (YRF) is an Indian entertainment company established by Yash Chopra, an Indian and producer who was considered an entertainment mogul in India. He set up his own company in the year 1976. Since the 1980s, it has produced many hits in India and the overseas market. The top hits of YRF in descending order of Gross.

In 2004, the Hollywood Reporter placed Yash Raj Films at number 27 in a survey of the "Biggest Houses" in the world; it is India's biggest production company as of 2006. Yash Chopra and topped the power list of India as according to the February 2005 edition of magazine. Yash Raj Films has launched its own merchandise label called YRF Merchandise which offers a range of products embellished with pictures and posters from Yash Raj Films like , Band Baaja Baraat and many more.

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2.1 Yash Raj Studios

Seeing the lack of a proper film shooting studio over the years, the company built its dream production studio, Yash Raj Films Studios, in Mumbai city. Yash Raj Studios, built in 2006, is primarily owned by the chairman and founder of the company, Yash Chopra. The first film to be shot in the studio was Fanaa (2006). The studio was created and designed by Aditya Chopra and his then wife, Payal Khanna, and is equipped with high technology shooting equipment and goods. The studio covers 20 acres (81,000 m2) on seven floors and is used to shoot films for the company as well as being rented to other filmmakers and television companies.

2.2 Yash Raj Film Works and Acclaim

YRF‘s first film was Joshila ('Passionate', 1973), an action-oriented movie fared only averagely at the box office, but his first independently produced film Daag ('The stain' or 'The stigma', 1973), a melodrama about a man with two wives, was a great success. He then made a number of the classic Amitabh Bachchan movies, scripted by Salim-Javed, notably and Trishul (‗the trident', 1978) are great hits and remain popular today. In the early 80‘s Yash Chopra's movies seemed to be going back over his earlier successes.

It was the change in the mood of the viewing public in the late 1980s and the revival of the romantic movie (Qayamat Se Qayamat Tak in 1988, Maine Pyar Kiya in 1989) that allowed Yash Chopra to re-emerge not only as the only survivor of his generation but to reclaim his position at the top. It is this group of films that accounts for his popularity with the younger generation of movie-goers. This highly successful period began in 1989 with Chandni, a huge box-office success, a film with all the hallmarks of what has come to be known as the Yash Chopra style: heroine-oriented, romantic, emotional, depicting the lifestyle of the super elite, with superhit music used in songs picturised in foreign locations. It is known also for its outstanding technical values.

Yash Chopra's career surprises most people. Mostly because it is hard to think that this whole corpus of films was made by one man. Yash Chopra has been at the top of his profession for forty years, while most other directors in tend to have much shorter lifespans. Apart from a brief dip during the 1980s, Yash Chopra has always been among the top five directors.

2.3 Foreign Direct Investment talks in 2007

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Yash Raj Films Pvt. Ltd. was rumored to be in discussion with silicon valley based Velocity Group of USA (now known as FUSE Global) a US$10 Billion+ private media fund controlled by and Indian origin founder and chariman Keyur Patel for a $500M investment potential in the slate funding. Fuse has been strong investor in media in India and Hollywood and has always remained behind some of the biggest media deals globally. To-date there is no word whether there was a transaction that was crafted given the private nature of both companies.

Yash Raj Films has forayed into the international market by launching a Hollywood-based production and financing company that will produce international content. The company named 'YRF Entertainment‘ will focus on developing and producing feature films for the US and the international market.

3. SWOT Analysis of Yash Raj Films

Strengths

 History of backing and producing several hits in Hindi Cinema industry  Financially sound and adept production systems  Strong Film distribution channels  Enormous installations of studios and sets  Knowledge from starting production house in Hollywood

Weakness

 Lack of attempts in producing other regional language movies in India

Opportunities

 Yash Raj Films have yet to start distribution and production houses in other countries  Early bird advantage of starting globally  Reputation value in target countries to attract competent personnel

Threats

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 Arrival of other international production houses like Warner Bros, Fox Searchlight, Blue Sky productions in India  Dispersing of capital over many countries stretching the financial capability too thin

4. VRIO Framework

Value

The values of YRF endeavours have brought successful results time after time. The long list of Box Office hits hold testament to this fact.

Rarity

The rarity of firms like YRF is because of its long standing work in Indian Entertainment industry. YRF has a strong base of writers, playwrights, technicians who are the main cogs in YRF operations.

Inimitability

YRF has a unique model of film making. Besides the usual mantra and masala of film making YRF has its model which it follows to ensure the appropriate response from its audience.

Organisation

YRF was headed by the late Yash Chopra who was part of the beginning of the era of modern Indian cinema. Spear heading the organisation is the Yash Chopra family. With the multi nation diversification of its operations YRF has acquired talents and skills of capable personnel from all over the world.

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