Competitive Strategy in the Movie Exhibition Industry Report

This report provides an analysis of the movie exhibition industry, focusing on competitive strategies and challenges. It begins with an introduction highlighting the industry's declining profits due to dynamic market conditions and increased competition from cinemas and studios. The case study examines the changing landscape of the movie theater business, the impact of technological advancements, and evolving value chain dynamics. Strategic issues include declining profits, environmental conditions, technological changes, and global forces. The report details business strategies such as upgrading sound systems, offering 4D experiences, and investing in theater maintenance to enhance customer experience. Competitive dynamics and corporate strategies, including horizontal integration and collaborations, are also discussed. Furthermore, it covers international expansion strategies, acquisitions, and cooperative strategies like mergers. The report also addresses sustainability initiatives and concludes by summarizing the challenges and the application of strategic development theories, along with references to relevant academic research.

Competitive strategy
The movie exhibition industry: 2015

Introduction
• The main objective of the case study is to increase their
revenues.
• The profit of the industry is declining due to the market is very
dynamic and the competitors in the cinema's theaters and the
studios are higher .
• the strategies are made to increase the revenues of the
companies and to solve the issues.

Summary of case
• The case basically studies the picture exhibition industry which
was changing the outlooks and exposes the tenuous for the
movie theater.
• The profitability of the exhibitors is affected due to the change
in the operating variables and the value chain dynamics.
• Change in technology, are analyses which were affecting the
profitability of the movie exhibition industry.

Strategic issues in the case
• There are certain strategic issues in this case which has
described below:
• Declining the profit of the movie theaters.
• Condition of the environment is harming the domestic
exhibitors:.
• Change in the technology.
• Global forces.

Business Strategy
• The strategy is made to give the upgraded sound systems and
provide the 4D Theater experience so that the customers visit
this theater more often.
• The investment is made on maintaining the theaters,
expanding the screen size so that more reliability of the
people can be attained.
• The theater also has made the strategy to make some
innovation in the technology and the affordability so that
more profit can be earned.

Competitive Dynamics
• There are many competitive forces in the movie theaters
which results in declining the profit for this movie exhibition
industry.
• The financial performance of the theater operations declines
due to the competitive forces and dynamics.
Companies Regal AMC Cinemark Carmike
The focus of
companies
To target the
middle size
market
To target the
urban market
To target the
small market
To target the rural
market

Corporate Strategy
• The corporate strategy of the theater is to make horizontal
integration.
• The theater industry was expanding the operations to the
commercial business and their strategy was to link up with the
manufacturers so that high level of film projection system can
be produced.
• The corporate strategy of the company is to charge lower cost
for the tickets so that the normal person can easily afford that
and revenues for the profit can be increased.

International Strategy
• The companies required a higher budget for expanding their movie
exhibition at the international level and for the rise in the emerging
market.
• International presence gives advantages to the company as their
profit increases.
• In the foreign markets, the volume of the dollar and the ticket sales
are increasing rapidly so by expanding the market at the
international level the companies can lead to the more growth.

Acquisitions and Structure
Companies Regal AMC Cinemark Carmike
Screens
Available
7367 4931 4499 2893
Screens which
are available
12.8 14.3 13.4 10.6
Ticket price $9.08 $9.43 $7.02 $7.23

Cooperative Strategy
• The strategy of the company is to collaborate or make merger
with the small theater so that the competition can be reduced.
• There are many small screen studios which are not effective as
their technology is not updated so by collaborating with them
more profit can be earned.

Sustainability
• The companies also have the strategy to maintain their
existence in the market for a longer period of time.
• Any entertainment source provided by this theater or studios
should not harm the environment.
• It is the strategy of the company to maintain the environment
by using less radiation at the cinema's theaters and also by
saving the power radiations.

Conclusion
• The current year the profit of the cinema's theater is declined
due to the change in the demographic factor.
• But still the business strategy is continuing to decline due to
the higher US population, and advancement in the technology.
• The competitive strategy and the theories of the strategic
development are stated in this presentation.