How to Create a Blockbuster

What do the pharmaceutical and entertainment industries have in common? More than you might think, says John Quelch. For starters, both run a greater risk in not pursuing the blockbuster than they do in pursuing it

The importance of blockbusters has been challenged recently by Chris Anderson's long tail theory that you can make money in many creative industries by selling specialized products to niche markets identified via the internet. For example, the new CEO of GlaxoSmithKline, the pharmaceuticals giant, likens the search for blockbusters to "finding a needle in a haystack when you need it." He also worries that a company is at risk if sales depend too much on one or two megabrands that could run into lawsuits from generic competitors or regulatory challenges.

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