Strategic Management Report: Movie Exhibition Business Trends Analysis

This report delves into the strategic management of the movie exhibition business, examining various trends that impact the industry. It explores factors such as economic conditions, socio-cultural influences, and the rise of alternative entertainment options. The report analyzes the effects of these...Read More

Strategic Management

TABLE OF CONTENTS
Trends Affecting the movie exhibition business.........................................................................1
Whether the effects are helpful or harmful to theater owners.....................................................1
REFERENCES ...............................................................................................................................4

Trends Affecting the movie exhibition business
There are a various number of forces that exist in the environment which are beyond the
control of organizations that are fighting and competing in the film industry. They have to
struggle a lot to achieve something in this competitive market. Various external features can be
considered but when they are producing various opportunities, at the same time the number of
threats are also maximizing. These factors have an impact on the overall performance and
growth of the organization (Gans and Ryall, 2017).
In the domestic economic sector, there are various conditions that seems uncomfortable
or unsuitable for continuing the financial pressure on the customers and clients. According to the
past cases, there were some minimization in the economy but they prove very beneficial as they
led to an increase in the theatre receipts. It can also be said as that it created an opportunity to
increase the sales for tickets in the cinemas.
Inappropriate hikes in tickets before and the increasing rate of the amount and availability
of the substitute goods, expectations for a recession impact cannot be considered as certain
(Wheelen and Hunger, 2017). Generally, the population in UK spend nearly 45 % on the
entertainment industry and there, movies are a very popular way of entertainment. These are
considered as socio cultural conditions. If the following condition can be treated with respect to
the optimism, various opportunities like for watching the movies outside the theatres have much
preference dramatically. It can imply the use of various portable devices with the new, modern
and popular media viewing techniques and methods on these portable devices. An average of the
overall attendance rates have fallen along with the sales of the tickets. The movie industry is
experiencing as a drop in attendance.
Various factors can be the reason such as new entrants in the market or there may be a
bargaining power of suppliers as medium to high and also can be the bargaining power of
buyers as low. These may be the reasons for a drop in attendance in the film industry. Various
strategies can prove helpful as differentiation, cost leadership and diversification can help the
film industry in better outcomes and a lesser drop in the overall attendance (Friesl and Kwon,
2017).
Whether the effects are helpful or harmful to theater owners
The environment factors can be both harmful or helpful for the theatre owners in the following
ways-:
1

The decline in Movie theaters
There was a substantial growth in the development of movie cinemas during the peak of
substantial box office revenue. But due to decline and closure of various movie venues there
have been stagnant growth in ticket sales of movies. The market for digital projector system may
become saturated if the current rate of these closure is continued.
Theater Exhibitions Upgrading to Digital Systems
As recent development in technology the digital cinema is becoming the norm for theatre
operators which have enhance the requirement for digital projection equipment. There have been
increased in the number of finished movies products formatted in a digital forms that is shifted
directly to theatres and then is operated by projectors (Williams, Chen and Agarwal, 2017) . To
show the Hollywood latest features the theater chains will be pushed to force their processors
digital. Over the decades there have been an immense growth in the digital cinema. The cost
have been saved on creating and transporting physical prints by moving towards digital
formatting. On the other hand still some owners are not ready to in vest on digital system as the
cost is high as well as low confidence on the return on investment.
International expansion
As there have been decline in the movie theaters along with perversion of digital projection these
have been an strategy made to look forwards to expand in the international market in order to
make out more revenue (Durand, Grant and Madsen, 2017.).
Increase in the number of screens per theater
The number of movie theaters are continuously falling,there have been increase in the
number of screens.
Investment in new theatre technology
Greater technology systems will help to differentiate themselves from competing forms of
entertainment as the theatre chains are investing and installing more of it. For an example motion
generating seats can be used that vibrate and move the movie sequence.
Protection of intellectual patients
As there have been expand of digital projection in oversees thee are high level of risk
regarding the protection of intellectual patents. Development of digital projection process have
been already began by international companies.
The convenience of online movie downloads
2

There have been an increase in options that are made available to customers to watch a
movie (Baumgartner and Rauter, 2017). These is a huge competition that is faced by theatre due
to various other forms of viewing of movie like mobile phone,computers etc.
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REFERENCES
Books and journals
Baumgartner, R.J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner Production, 140,
pp.81-92.
Durand, R., Grant, R.M. and Madsen, T.L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management
Journal, 38(1), pp.4-16.
Friesl, M. and Kwon, W., 2017. The strategic importance of top management resistance:
Extending Alfred D. Chandler. Strategic Organization, 15(1), pp.100-112.
Gans, J. and Ryall, M.D., 2017. Value capture theory: A strategic management review. Strategic
Management Journal, 38(1), pp.17-41.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy. Pearson.
Williams, C., Chen, P.L. and Agarwal, R., 2017. Rookies and seasoned recruits: How experience
in different levels, firms, and industries shapes strategic renewal in top
management. Strategic Management Journal, 38(7), pp.1391-1415.
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