Business of AMC: Strategic Factors for Success

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