Alamo Draft house Case Study 1. Marketing analysts use market position maps to display visually the customers’ perceptions of a firm in relation to its competitors regarding two attributes. Prepare a market position map for Alamo Draft house using “food quality "and “movie selection” as axes.
Answer:
The market position map for the Alamo Draft house using food quality and movie selection as axes is as follows:

Big
Small
Movie Selection
High
Low
Food Quality

2. Use the “Strategic Service Vision” framework to describe Alamo Draft house in terms of target market segments, service concept, operating strategy, and service delivery system.
Answer:
The table below illustrates the strategic service vision of Alamo Draft house. The strategic service vision is done using the information presented in the case study and the current situation and the target of the company. Target Market Segment | Service Concept | Operating Strategy | Service Delivery System | 1. The target market for Alamo Draft house is Austin, TX | 1. Affordable tickets | 1. Tables layout and shape for non-disturbance of customers while serving food | 1. Taking orders and delivery of orders without disturbing customers while watching the film | 2. Target People between age of 25-40 years old | 2. Second run films | 2. Special movie experience with offering of food and drinks | 2. Effective service through appropriate number of staff | 3. People between the age of 18-30 are predominantly males. | 3. Serving food and drinks during films | | 3. Good service to a certain extent & explaining the rules and ordering process to new customers | 4. Plays second run films | 4. Process for not disturbing customer while watching movies and taking orders | | 4. Effective communications | | | | 5. Answering emails and queries of customer on Alamo's website | | | | 6. Gaining Customers' trust |

3. Identify the service qualifiers, winners, and service losers for Alamo Draft house. Are the Alamo purchase decision criteria appropriate for the multiplex movie theater market? What do you conclude?
Answer:
Service qualifiers: * Quality of Food * Selection of movies to be played in the theatre
Winners:
* Low Price tickets * Good location of Alamo house, which is in a busy location and attract customers * Offering food and drinks while watching movies * Providing tables for customer to place food and drink. Tables layout and shapes accommodate the size of the theatre and the ordering process.
Losers:
* Limiting the category of customers by the type of movies played in the theatre. Only viewing cult second run movies limits the category of customers. This needs to be reevaluated and enhanced to target a wider variety of customers. * Number of seating is limited. The number of seating is limited due to the constraint of space between tables and seats.
Purchase decision criteria: * The location of Alamo house is very good for such business. The business is located in a busy downtown area, which attract customers. In addition, serving food and drinks while watching movies is very attractive. The ticket prices are affordable and makes people spend on food, which from my point of view it is what makes the most of the money to the business. The fact that alcoholic drinks are served brings in more customers. Hence and from my point of view and the information provided in the case, Alamo house has a good purchase decision.

4. Use Porter’s Five Forces Model to assess the strategic position of Alamo Draft house in the "entertainment industry."
Answer:

New Entrants
Movie Theatres
Big Cinema Companies

Substitute to Theatre
DVD Rentals
Online Downloads
DVD Rooms
Power of Customers
Actions of customers on Internet
Lack of Information Quality
Price pressure
Competition
Competitive Industries the offers dine-in theatres

Power of Supplier
Owner of building (Rent)
Food Suppliers
Movie Distributors

Competitions: It is a little different with competition, since competitors play recent movies and premium theatre services. This is a different category, which may not affect Alamo's that much due to the difference in movie and service categories.

Substitutes: People can prepare meals and stay at home and watch the second run movies, which may threat the business. However, some people like to be serviced and hang out while eating, watching movies, and having an alcoholic drink. In addition, Alamo's holds events, which cannot be replaced at home.

New Entrants: Industries like the ones mentioned in the new entrants section can enter the business and compete with Alamo's. Such places already have the available large space to accommodate such service and compete.

Power of Suppliers: The price of movies should stay fixed as Alamo's play second run movies. Food prices may go up and down, but it is known and obvious to everyone, which will not affect the business much. However, the owner of the property may increase the rent of the place, which will affect the overall business and should reflect on higher prices on the menu or tickets. This may affect the number of customers coming to the place due to the increased prices.

Power of Customers: Customers have power over the owner of Alamo's because they can choose to go to alternative places. This may cause problems and competition to keep customers to the place. This may require discounts and special offers to loyal customers to maintain loyalty. Customers may put pressure on the owner to reduce prices or compete with competition due to the alternative places customers may decide to switch to.

5. Conduct a SWOT analysis to identify internal strengths and weaknesses as well as threats and opportunities in the external environment.
Answer:
SWOT analysis technique is used to identify the strengths, weaknesses, threats, and opportunities, which is illustrated in the below table. Strengths
-Tables for Customers to place the food & drinks
- Comfort for customers by providing enough spacing between rows and seats
- Increasing customer satisfaction by offering food, drinks, & movies | Weaknesses
- Limit number of seats, which limits the number of customers
- Shows only cult second run movies, which limits the category of customers. | Opportunities
- Expensive ticket prices
- Small space between rows
- Food & drinks outside the theatre cannot be brought into the theatre | Threats
- Services offered by competitors
- Category & recent movies shown by competitors
- Small space & high labor cost |

References:
Fitzsimmons, J. A., Fitzsimmons, M. J., & Bordoloi, S. K. (2014). Service management: Operations, strategy, information technology (8th ed.). New York, NY: McGraw Hill.