Awards Are Significant Tools for Increasing Demand: Economic Analysis

Awards Are Significant Tools for Increasing Demand: Economic Analysis An award is an honorary appreciation given to people, an organization or people for their excellence in a certain field. This is similar to a certificate. Awards are in most cases signified by pins, ribbons, commemorative plaques, trophies, certificates, titles, medals and badges. Sometimes an award may carry a monetary prize given to an individual. For instance, the Nobel Prize given to individuals for their exceptional contributions to society. Another monetary award is the Pulitzer Prize for literary achievements.

It can also be a public acknowledgement without any prize or tangible token. This essay endeavors to explain and give an economic analysis of the propositions that awards are an important tool for increasing participation and demand. This essay will talk specifically about the film industry (Kaimann, 2013). Superstar refers to a celebrity who is widely known and has great popular appeal, successful and prominent in some field. The celebrities considered as superstars include actresses, musicians, actors, athletes, and other media-based professions.

Creating a movie is not always glamorous in this case a Hollywood movie. Creation of a movie is very costly and demands many resources. For instance, the average cost of a Hollywood movie is about $60 million. The payoff is realized only when viewers show up to view the final product on the big screen. There are also risks such as cast injuries, equipment malfunctions that can slow or damage moviemaking and film production.

An individual wanting to venture into this industry may seem like a wild and in some cases an unwise adventure (Ponzo, & Scoppa, 2013). MTV Movie Awards is an award show presented yearly on MTV. It deals with film actors; they are decided by executives and producers at MTV. The general public decides the winners online. There are several award categories that are presented like the Best Male performance, Movie of the year, Best Cast, Best Female Performance, Best Music and others.

With the existence of such awards to the super stars, I believe that individuals will earn and generate more demand for their movies. The filmmakers thus take advantage of the stars to guarantee them success (Gemser, Leenders, & Wijnberg, 2008). The Strategic objective of filmmakers is to make a general decision to make artistic or commercial movies thus their work is to secure crucial resources. There are several characteristics of resources. First of all, they should have the capacity to generate value.

In this case, they should lead to high margins, high sales, low costs and add financial value to a firm. I believe when awards are given to individuals for their excellent performance in public, the value of the company sponsoring them increases (Kaimann, 2013). Rareness is another characteristic of a resource that creates a competitive advantage. For those film actors that are awarded for their exceptional performance are often rare and many firms seek to employ them.

This increases the competitive advantage and raises the firm that the actor associates himself with beyond the competitive parity. A firm describes the strategic management as the maintenance and development of meaningful skills and assets. By giving awards to the film actors that have done exceptional works. This motivates them and encourages other actors from working hard and developing their skills. This increases a firm's competitive advantage (Ponzo & Scoppa, 2013). The awarded movie stars sometimes serve as brand ambassadors for several firms.

This is because the star motivates other input providers into delivering their best effort. The awarding of.