Case Study – The Movie Exhibition Industry
[Header] Case Study – The Movie Exhibition Industry 1
Case Study: “The Movie Exhibition Industry”
Strategic Planning - BS400
October x, 2013
Overview/Introduction
My analysis will cover competition from substitutes and the change in buyer behavior and demographics. I will use the five forces model of competition and a SWOT analysis along with other sources of analysis. The information and recommendations that follow will provide you with the insight and building blocks to compete in the movie exhibition industry.
Analysis: SWOT
1. Strengths
• Digital / technological innovations provide economic opportunity
• 3D functionality provides greater clarity
• Untapped revenues may bring in non-peak audiences o Sunday afternoons o Monday evenings / nights
• Proper geographic location of theaters boosts economic opportunity
2. Weaknesses
• Advertising of their product (motion pictures)
• Lack of Innovation
• No competitive advantage to speak of
• Sharing box office sales with similar distributers and competition
• Reliance of concession sales and advertisements for income
• Costly to test out the market ahead of time
• Lack of focus on the social experience of consumers
• High concession prices
• Having to count on production business for content in order to generate sales
• High ticket prices
• No opportunity for product/item differentiation.
3. Opportunities (External)
• Broader target audience
• The development of middle class internationally
• Improving the customer experience
• Providing healthier concession items to consumers.
4. Threats (External)
• 3D TV’s
• In-home theatre and sound systems
• Much shorter release windows to DVD
• Some hotel chains are offering their guests the opportunity to purchase and watch the same movies currently out in the
Case Study: “The Movie Exhibition Industry”
Strategic Planning - BS400
October x, 2013
Overview/Introduction
My analysis will cover competition from substitutes and the change in buyer behavior and demographics. I will use the five forces model of competition and a SWOT analysis along with other sources of analysis. The information and recommendations that follow will provide you with the insight and building blocks to compete in the movie exhibition industry.
Analysis: SWOT
1. Strengths
• Digital / technological innovations provide economic opportunity
• 3D functionality provides greater clarity
• Untapped revenues may bring in non-peak audiences o Sunday afternoons o Monday evenings / nights
• Proper geographic location of theaters boosts economic opportunity
2. Weaknesses
• Advertising of their product (motion pictures)
• Lack of Innovation
• No competitive advantage to speak of
• Sharing box office sales with similar distributers and competition
• Reliance of concession sales and advertisements for income
• Costly to test out the market ahead of time
• Lack of focus on the social experience of consumers
• High concession prices
• Having to count on production business for content in order to generate sales
• High ticket prices
• No opportunity for product/item differentiation.
3. Opportunities (External)
• Broader target audience
• The development of middle class internationally
• Improving the customer experience
• Providing healthier concession items to consumers.
4. Threats (External)
• 3D TV’s
• In-home theatre and sound systems
• Much shorter release windows to DVD
• Some hotel chains are offering their guests the opportunity to purchase and watch the same movies currently out in the