Business of AMC: Strategic Factors for Success

This paper delves into the strategic factors responsible for the success of American Multi-Cinema (AMC), the leading theatre chain in the USA. The paper assesses the strategic success of the firm, its increasing share price on the New York Stock Exchange, and its strong international presence and immense revenue generation. The paper also discusses the challenges faced by AMC and suggests strategies to become more competitive and sustainable.

Running head: AMC c
Business of AMC
Name of the Student:
Name of the University:
Author Note:

Chapter 1:
Introduction:
Topic:
The theatre chains are one of the booming segments of the entertainment industry which
caters to the millions of people around the world. The theatre chains today are the multinational
public limited companies listed on the top stock exchanges like NASDAQ. These business
houses earn revenue worthy billions of dollars owing to the extensive product lines and
international customer base. The aim of the paper would be to delve into one of leading
international theatre chains based in the United States of America and listed on NASDAQ, the
American Multi-Cinema, often called AMC internationally (Aleem, Capretz & Ahmed, 2016).
Assessment:
The paper would delve into the strategic factors responsible for the success of American
Multi-Cinema, the leading theatre chain in the USA. The strategic success of the firm can be
defined as its power to cater to a large customer base in ad outside the United States of America.
Its increasing share price on the New York Stock Exchange clearly shows its rising capita
generation. A comparison between AMC and its competitors shows that the theatre chain owns
more than 8000 screens compared to less than 8000 screens owned by its closest rival Regal
Entertainment. AMC generated a revenue of more $111 which shows its revenue generation
prowess. The paper would delve into the factors like strong international presence and immense
revenue generation of the firm.
Method:

The researcher have used various secondary sources of information to conduct the
research. The sources of information consist of magazines, newspaper articles, official websites
and books. This immense source of information have allowed the examiner to gain in depth
knowledge on AMC and its business. For example, the researcher has consulted the official
website and gained a lot substantial information. Again, in order to compare AMC with its
competitors, the researcher has consulted reports regarding America’s largest movie theatre. he
has also consulted articles and books on strategic planning.
Industry benchmark:
American Multi-Cinema holds the top position among the movie theatre chains in the
United States of America with more than 8000 screen all over the country. The revenue of AMC
was $ 111.667 million in 2016 which showed its financial power. This revenue generation power
of the theatre chain is by the virtue of its main product consisting of theatre services which it
offers to the movie lovers in North America, Europe and Asia. The movie theatre provides food
and drinks within its premises which the movie viewers can purchase while watching movies.
The customers can purchase tickets to watch films using the official website of the company.
They can also avail the superior comforts at the theatre halls operates by AMC (Eliashberg et al.,
2016).
An appropriate targeting strategy of American Multi-Cinema has formed the benchmark
of its high performance in the American entertainment industry. Geographically the market can
be divided into North America, Europe and Asia. The theatre chain company is present in
countries like the UK in Europe, the US, its home country and also China in Asia. Thus, the
target market of the company can be segmented as developed and emerging markets. The main
markets of the theatre chain are located in the cities where people have sufficient disposable

incomes to avail premium movie services (Xiang et al., 2014). Thus it is evident that the strategy
has enabled the chain to get access to a huge customer base both in the US and abroad. This has
led to immense generation of revenue for the company.
The markets of AMC can be segmented on the basis of lifestyle. The main customer
segments of the company consist of young and middle aged people who enjoy watching movies
in the movie halls. Professionally, the market can be divided into students and working people
who watch movies at the theatre to refresh themselves (Ryan, 2016).
This benchmark sales or weighted average sale in the Hollywood industry is expected to
touch $113 billion. One can infer from this prediction that the top movie theaters in the US like
AMC can also expect high growth rate. However, growing illegal download of films can cause
potential harm to the movie sales in the film industry (theguardian.com, 2018).
The unique selling proposition of AMC consist of its power to provide its customers
superior environment to enjoy movies. The company also offers food and drink services to its
customers. Its power to combine comfortable film watching experience with food enable it to
offer superior viewing experiences to customers (amctheatres.com, 2018).
Key Findings:
The key findings of the study is based on the analysis of the entertainment industry of the
US and that of AMC. It has been found that the theatre chain has a bright future ion the US but
must take steps to deal with the financial challenges it is encountering. The future business
strategies of the company stands on the five pillars of betterment of food and drinks,
enhancement of customer loyalty, more aggressive market segmentation, more comfortable
seating arrangements and offering of more enhanced viewer experience (Xiang et al., 205). The

company is being unable to generate the expected revenue and also faces operational issues.
Issues like bad debts are also leading to huge losses to the company. AMC no doubt holds top
position in the United States which is largest movie market in the world. It also has strategic
presence in Europe and Asia. The company should use its business position to counteract these
issues and generate more revenue in future, thus aiming to be more sustainable (Ryan, 2016).
The business goals of American Multi-Cinema should be maximizing its revenue and
market presence. The company should form strategies to deal with its operations issues pointed
in the discussion to become competitive (Eliashberg et al., 2016).

References:
Aleem, S., Capretz, L. F., & Ahmed, F. (2016). Empirical investigation of key business factors
for digital game performance. Entertainment Computing, 13, 25-36.
AMC Overview. (2018). Amctheatres.com. Retrieved 28 April 2018, from
https://www.amctheatres.com/corporate/about
Child, B. (2018). US film industry set for four years of strong growth, predicts report. the
Guardian. Retrieved 28 April 2018, from
https://www.theguardian.com/film/2011/jun/14/us-film-industry-growth-forecast
Eliashberg, J., Hennig-Thurau, T., Weinberg, C. B., & Wierenga, B. (2016). Of video games,
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