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The Movie Exhibition Industry: 2011

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MGMT-780-623 - Week 3 Assignment
The Movie Exhibition Industry: 2011

SWOT Analysis

Strengths

Internal – new digital technology with 3D optional feature, buildings (whether rented or owned) are large (most are multi and megaplex style)
External – leverage in both the concession industry and the distribution industry Weaknesses

Internal – rely on concessions and advertisements, concession pricing, experience largely the same as every competitor
External – content, consumer income, marketing of movies relies on studio production companies, split sales with distributors

Opportunities

Internal – content choices, experience, concession options
External – growing middle class, rebound from recession Threats

Internal – only way to increase revenue is through increased concession costs or increased advertising before movie viewing
External – home theater technology, release windows getting shorter, streaming video companies

How can a company achieve a competitive advantage in this industry?

For a company in the movie exhibition industry, a few simple things can be done to achieve a competitive advantage over other companies in the industry. First, let’s define competitive advantage. Competitive advantage, as defined by our Strategic Management textbook, is a “firm’s resources and capabilities that enable it to overcome the competitive forces in its industry.”

Independent Content, Customer Experience, Local Concession Options

One way for a company to create a competitive advantage in the movie exhibition business is to cultivate good content. Nearly every movie theater in the country offers the exact same movies at the exact same time. There is always an appeal for big box office movies that cost millions to produce with big name actors, hardly any substance and crazy special effects. Many people, however, favor a good story line with...

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