Regal Entertainment Group: Addressing Industry Dependency and Differentiation
| Regal Entertainment Group: Addressing Industry Dependency and DifferentiationClaire Fuller
BA 301 Final Term Paper
Section 003
June 6, 2012
Claire Fuller
BA 301 Final Term Paper
Section 003
June 6, 2012 |
Executive Summary Regal Entertainment Groups is the parent company of Regal Cinemas, which is made up of Regal Cinemas, the United Artists Theaters, and the Edwards Theater. It runs the largest theater circuit in the U.S., and uses the multiplex cinema model in metropolitan and metropolitan growth areas. The movie theater industry is highly competitive, both within the film entertainment industry (as with Netflix and pirated films) and with substitute goods, such as live performances, restaurants, and sporting events. In addition, industry competitors have an extremely low level differentiation from one another, which is partially due to the reactive nature of the industry. It is also due to the considerable dependency on major film production companies. Regal’s dependency on the film production companies for profitable films and film advertising contributes to its lack of differentiation from its major competitors, which hinders its profitability potential in a market of ambivalent consumers. This report recommends that Regal pursue both an active advertisement campaign team to deliver the message of Regal’s value directly to the consumer (a practice not traditionally observed in the movie theater industry) to create brand recognition, and forge partnerships and agreements with live performance venues, utilizing Regal’s existing digital technology. By doing so, Regal could increase its profit margins, decrease its dependency on quantity and quality of mainstream film companies, create greater value to consumers and stakeholders, and provide new entertainment possibilities and community experiences that have not been available on this scale before.
Position
Company Overview
Regal Entertainment Group was created out of a consolidation of
BA 301 Final Term Paper
Section 003
June 6, 2012
Claire Fuller
BA 301 Final Term Paper
Section 003
June 6, 2012 |
Executive Summary Regal Entertainment Groups is the parent company of Regal Cinemas, which is made up of Regal Cinemas, the United Artists Theaters, and the Edwards Theater. It runs the largest theater circuit in the U.S., and uses the multiplex cinema model in metropolitan and metropolitan growth areas. The movie theater industry is highly competitive, both within the film entertainment industry (as with Netflix and pirated films) and with substitute goods, such as live performances, restaurants, and sporting events. In addition, industry competitors have an extremely low level differentiation from one another, which is partially due to the reactive nature of the industry. It is also due to the considerable dependency on major film production companies. Regal’s dependency on the film production companies for profitable films and film advertising contributes to its lack of differentiation from its major competitors, which hinders its profitability potential in a market of ambivalent consumers. This report recommends that Regal pursue both an active advertisement campaign team to deliver the message of Regal’s value directly to the consumer (a practice not traditionally observed in the movie theater industry) to create brand recognition, and forge partnerships and agreements with live performance venues, utilizing Regal’s existing digital technology. By doing so, Regal could increase its profit margins, decrease its dependency on quantity and quality of mainstream film companies, create greater value to consumers and stakeholders, and provide new entertainment possibilities and community experiences that have not been available on this scale before.
Position
Company Overview
Regal Entertainment Group was created out of a consolidation of
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