Strategic Management Report: Analysis of Movie Theater Industry

This report provides a strategic management analysis of the U.S. movie theater industry. It begins with a SWOT analysis, identifying strengths such as modern technology and well-distributed venues, while also pinpointing weaknesses like insufficient revenue and lack of audience feedback. Opportunities include leveraging digital platforms and technologies like 4D experiences. Threats include the increasing popularity of home theater systems and globalization. The report identifies the lack of modern digital technologies as a core problem, leading to potential threats to the industry. It explores alternatives like using theaters for business conferences and implementing immersive 4D experiences. The report recommends collaborations with experts and the development of independent films, along with discounted pricing for senior citizens to expand the target market. The analysis is supported by cited references on strategic management and cinema exhibition.

Running head: STRATEGIC MANAGEMENT
Strategic management
Name of the Students:
Name of the University:
Author’s Note:

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Situational analysis
STRENGTH
Motion picture which is one of the most popular key drivers for the sale of entertainment
products in the U.S market, It has the best and modern technology like the digital technology, 3D
capability, the current real estate/locations of theaters. Apart from this, the venues are also
distributed properly and they try to give many concessions to their customers as well.
WEAKNESS
the lack of sufficient revenue is one of the major aspects. Apart from this they also suffer from
the lack of enough feedback and opinion of the public or the moviegoers. In other words, they
suffer from the lack of enough social experiments that are needed for bringing in the variation in
the products and also in the different technologies that are used. They also do not have proper
content and have to largely depend on the production houses for content
OPPORTUNITY
they must use all the modern digitalized platforms and technologies that will help them to
enhance the customer experiences. This can be done by using digital technologies like 4D
definitions of the pictures, the sounds and the motions of the different actions happening in the
movie and also many other such aspects.

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THREAT
Home theater technology becoming more common and attractive among people.
Internationalization or Globalization is one of the biggest threats. Many of the studios are
emphasizing the International market as it fetches a huge amount of profitability.
Problem identification
The main problem identified is the lack of enough modern digitalized technologies in the context
of movie theaters (Hitt, Ireland and Hoskisson 2016). This, in turn, is bringing about a huge
threat or fear among the movie exhibition industry. Moreover, the growing demand for
moviegoers for Internationalization or getting the International elements in the movies and their
overall experiences is altogether creating a huge pressure on the theaters. They have to think
about the different statues by using which they will be able to develop many new alternatives and
also attract the attention of their customers.
Exploration of alternatives
 One of the good alternatives is offering their studios during lean seasons or off seasons
for business conferences and meetings. This would ensure that they are getting additional
money
Inflow.
Immersion experiences 4D and beyond must also be used so that they can develop their
screen settings and also let their audiences get a new experience

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Recommendations
 It is recommended that they collaborate with expert freelancers, competent writers, movie
makers and others who are trying to come up with the actual social topics and the current
affairs that people are looking for.
 It is recommended to develop more independent movies and also allow two to three
theatres at an affordable discounted price for the older group of people that is the senior
citizens. This would ensure that they are increasing their target market from 12 to 24
years of people from 40 to 50 years.

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References
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and
cases: Competitiveness and globalization. Cengage Learning.

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Bibliography
Kaya, D., 2019. Remembering the first movie theaters and early cinema exhibition in Quay,
Smyrna, Turkey. The Routledge companion to new cinema history, pp.244-253.
López‐Valdeolivas, M., Liu, D., Broer, D.J. and Sánchez‐Somolinos, C., 2018. 4D printed
actuators with soft‐robotic functions. Macromolecular rapid communications, 39(5), p.1700710.
Ndalianis, A. and Balanzategui, J., 2019. “Being Inside the Movie”: 1990s Theme Park Ride
Films and Immersive Film Experiences. The Velvet Light Trap, (84), pp.18-33.