INF10009 Swinburne University: Movie Bazaar Analysis Report

This report provides a comprehensive analysis of Movie Bazaar, an Australian movie rental business, focusing on its performance and the competitive landscape it operates in. The analysis includes a review of the company's revenue trends, product category performance, and the application of Porter's Five Forces model to assess competitive rivalry, the threat of substitutes and new entrants, disruptive technology, and buyer bargaining power. The report highlights the impact of online movie rental services and piracy on Movie Bazaar's business, particularly the decline in sales in certain store locations. It concludes by emphasizing the need for Movie Bazaar to adapt to the changing market dynamics to ensure its survival and profitability in the evolving Australian movie rental industry. Desklib provides access to similar solved assignments and resources for students.

Running head: INTERNATIONAL BUSINESS INFORMATION SYSTEM
International Business Information System
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INTERNATIONAL BUSINESS INFORMATION SYSTEM
Table of Contents
1. Introduction..............................................................................................................................3
1.1 Purpose..............................................................................................................................3
1.2 Background.......................................................................................................................3
2. Business Performance Review.................................................................................................4
2.1 Total Revenue Comparison...............................................................................................4
2.2 Product Category Comparison..........................................................................................4
3. Competitive and Technological Analysis.................................................................................5
3.1 Competitive Rivalry..........................................................................................................5
3.2 Threat of Substitutes.........................................................................................................5
3.3 Threat of New Entrants.....................................................................................................6
3.4 Disruptive Technology......................................................................................................6
3.5 Sustaining Technology......................................................................................................6
3.6 Buyer Bargaining Power...................................................................................................6
3.7 State of Australian Movie Rental Industry.......................................................................7
4. Conclusion................................................................................................................................7
Reference.........................................................................................................................................8
Appendix........................................................................................................................................10
Appendix 1.................................................................................................................................10
Appendix 2.................................................................................................................................11

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Appendix 3.................................................................................................................................12

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1. Introduction
The main purpose of this assessment is to analyze the performance of a Movie Rental
business which operates in Australia. The company which is taken into consideration for this
assessment is Australia Movie Bazaar. The assessment will be analyzing the performance of the
business and also determine the reason for the fall in the sales of the business in certain areas and
also analyze the overall level of production which the business faces from other rental companies
(Chopra and Veeraiyan 2017). In order to analyze the same, Porter’s Five Force Model is taken
in consideration which will be discussed in the coming paragraphs (E. Dobbs 2014).
1.1 Purpose
The assessment focuses on identifying the business conditions for Movie retail business
considering Australian Movie Bazaar and also assessing the market for the same (Nugent 2015).
The strengths and weakness of the business will be identified as well in later paragraphs along
with the threats which the business faces. The assessment will be focusing the overall business
performance of Australian Movie Bazaar.
1.2 Background
Movie Bazaar is a movie rental company which operates in Australia and has three outlets
which are situated in Victoria region of Australia which are namely Ringwood, Kew and
Flemington. The business allows customers to rent videos for a few days on which rental charges
are applicable. Ringwood store of the business has highest sales and contributes to the major part
of the sales revenue of the company. The business has a variety of categories of videos which are
available which include comedy, Horror, Action and similar other categories. On the basis of
renting of such categories of movies the business earns profits.

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2. Business Performance Review
2.1 Total Revenue Comparison
As per the analysis of the revenues which is made by the business while operating in
Ringwood store, the performance of the business in terms of total revenue of the business is
given. The analysis which is shown in the appendix section clearly shows that the business has
earned more revenues from the fourth quarter of 2016 and the same trend continues throughout
all the quarter of 2017. In the third quarter of 2016, the total revenue which the business earned
was shown to be $ 97,758.25 which has improved tremendously in the first quarter 2017 and the
same is shown is to be $ 106,500. This is mainly due to the overall increase in the sales revenues
which is generated from sales of comedy category of movies. The maximum sale is achieved by
the business in the fourth quarter of 2017 which is shown to be $ 122,130 which is due to the
improvement in the sale of adventure movies and comedy movies.
2.2 Product Category Comparison
The product category comparison of business aims to shows that which category of product
earns maximum revenue for the business. The analysis along with table is shown in the appendix
section which shows that adventure movies sales have increased significantly and the same has
grown by around 45.76% which shows the change in the taste and preference pattern of the
consumers. In addition to this, there has been an increase in sales revenue of action movies and
animation movies which have growth respectively by 12.59% and 5.48% in comparison to 2016
estimates. The total decline in sales is less than total in increase in sales in other categories and
the net increase is shown as $ 41,653.38 in net sales of the business.

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3. Competitive and Technological Analysis
In a business environment, the competitive and Technological analysis plays a vital role in
the development of the business and also on the overall performance of the business (Rothaermel
2015). In order to analyze the competitive and technological market of the Movie Bazaar, Porter
five force model is applied which is shown in the following paragraphs:
3.1 Competitive Rivalry
This refers to the overall level of competition which is faced by the business in industry. As
shown in the case study, the market in Australia is rather competitive in nature and it is only due
to the changing environment that some of the business has either closed or scaled down the
operations of the business (Dobrivojevic 2013). The major threat which the business faces is due
to the increase in the competitiveness in the market with the advent of online movie rental
system (Yunna and Yisheng 2014). This can be attributed as one of the main reasons for the fall
in the sales of the business. The case study shows that the sales of Kew and Flemington has
fallen sharply which is a matter of concern for the management of Movie Bazaar.
3.2 Threat of Substitutes
The business of Movie Bazaar is dependent on the different categories of movies which are
provided on rent by the company. In the world of developing technology and advent of online
movie sites have brought serious competitive pressure and also increased the risks of
Substitution (Dälken 2014). Moreover, there is always a risk of piracy which have become quite
common with the advent of Online movie sites. The possible substitute for products provided by
Movie Bazaar are Netflix, Amazon Prime and Extratorrents.

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3.3 Threat of New Entrants
The threats which are associated with new businesses entering movie rental industries are
low at present which may be due to the declining significance of Movie rentals. But the major
reason for the same is due to the existence of barriers to entry which are the startup costs which
is significantly more as movie distributers are to be contacted, proper infrastructure has to be set
up (Altuntaş et al. 2014). Another barrier is related to the software costs which are required in a
movie rental business in case the business is providing online renting.
3.4 Disruptive Technology
The disruptive technology which can be identified in the case of Movie Bazaar is the
introduction of online movie sales websites such as Torrents, Amazon Prime (Gertsen and
Tollestrup 2017). This signifies that the introduction of online movie download system has
affected the business of Movie rentals adversely.
3.5 Sustaining Technology
Sustaining Technologies can have positive impact on the business environment of the Movie
Bazaar and the management should formulate specific plans for the same. The business can
provide better quality of movies along with subtitles for a reasonable range of prices depending
on the popularity and demand of the movie.
3.6 Buyer Bargaining Power
The bargaining power of the customer is always a factor which can impact the total sales of
the business. In case of Movie Bazaar, the movies which are offered on rent are easily available
on various movie websites from where the customer can easily download the same (Takata

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2016). This provide the customer immense power to bargain and thereby this affects the sales
revenue which is generated by the business.
3.7 State of Australian Movie Rental Industry
The Australian Movie rental industry has been impacted with the introduction of website for
movie downloads. The case study itself shows that the overall sales of the businesses are
declining and many of the business have closed down or scaled down the operations of the
business. This is a reason due the management of Movie Bazaar needs to adapt to the changes in
the environment in order to survive.
4. Conclusion
Thus, from the analysis of the business environment of Movie Bazaar, it is clear that the
overall market of Movie rental has changed drastically and different business are finding it
difficult to adapt to the changes in the rental industry. In the case of Movie Bazaar, the stores of
kew and Flemington have experienced fall in sales and therefore, the overall profitability of the
business has reduced.

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Reference
Altuntaş, G., Semerciöz, F., Mert, A. and Pehlivan, Ç., 2014. Industry forces, competitive and
functional strategies and organizational performance: Evidence from restaurants in Istanbul,
Turkey. Procedia-Social and Behavioral Sciences, 150, pp.300-309.
Chopra, S. and Veeraiyan, M., 2017. Movie Rental Business: Blockbuster, Netflix, and
Redbox. Kellogg School of Management Cases, pp.1-21.
Dälken, F., 2014. Are porter’s five competitive forces still applicable? a critical examination
concerning the relevance for today’s business (Bachelor's thesis, University of Twente).
Dobrivojevic, G., 2013. Analysis of the competitive environment of tourist destinations aiming at
attracting FDI by applying Porter’s Five Forces Model. British Journal of Economics,
Management and Trade, 3(4), pp.359-371.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Gertsen, F. and Tollestrup, C., 2017, December. Towards a conceptual model of digital
disruption. In ISPIM Innovation Symposium (pp. 1-8). The International Society for Professional
Innovation Management (ISPIM).
Nugent, M., 2015. Video cassette revolution: the VCR in Australia.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.

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Takata, H., 2016. Effects of industry forces, market orientation, and marketing capabilities on
business performance: An empirical analysis of Japanese manufacturers from 2009 to
2011. Journal of Business Research, 69(12), pp.5611-5619.
Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in
China: Applying Porter’s five forces and scenario model. Renewable and Sustainable Energy
Reviews, 40, pp.798-805.

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Appendix
Appendix 1
Movie Bazaar
Ringwood SALES (Lady Gaga)
Cat
ego
ry
ID
Descript
ion Rental Revenue for each Quarter
Product
Category Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
100
0 Adventur
e
$
20,000.
00
$
19,50
0.00
$
25,000.
00
$
24,00
0.00
$
30,000.
00
$
32,00
0.00
$
31,000.
00
$
36,00
0.00
200
0 Comedy
$
15,000.
00
$
14,00
0.00
$
14,400.
00
$
18,00
0.00
$
14,250.
00
$
13,30
0.00
$
13,680.
00
$
17,10
0.00
300
0 Action
$
18,000.
00
$
17,50
0.00
$
17,000.
00
$
19,00
0.00
$
18,500.
00
$
18,00
0.00
$
19,000.
00
$
25,00
0.00
400
0 Thriller/
Crime
$
10,000.
00
$
9,100.
00
$
8,645.0
0
$
9,000.
00
$
9,500.0
0
$
8,645.
00
$
8,212.7
5
$
8,550.
00
500
0 Romanc
e
$
8,000.0
0
$
7,600.
00
$
7,220.0
0
$
7,500.
00
$
7,100.0
0
$
7,000.
00
$
6,500.0
0
$
5,000.
00
600
0 Horror
$
9,000.0
0
$
8,550.
00
$
8,122.5
0
$
8,800.
00
$
8,550.0
0
$
8,122.
50
$
7,716.3
8
$
8,360.
00
700
0 Musical
$
200.00
$
190.0
0
$
180.50
$
150.0
0
$
130.00
$
120.0
0
$
110.00
$
80.00
800
0 Docume
ntary
$
100.00
$
95.00
$
90.25
$
50.00
$
80.00
$
70.00
$
80.00
$
40.00
900
0 Animatio
n
$
17,000.
00
$
16,15
0.00
$
17,100.
00
$
20,00
0.00
$
18,000.
00
$
16,00
0.00
$
18,100.
00
$
22,00
0.00
Total
Rental
Revenue
$
97,300.
00
$
92,68
5.00
$
97,758.
25
$
106,5
00.00
$
106,11
0.00
$
103,2
57.50
$
104,39
9.13
$
122,1
30.00

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INTERNATIONAL BUSINESS INFORMATION SYSTEM
Appendix 2
Movie Bazar
(Ringwood)
SALES Trend 2016-2017 (Lady
Gaga)
Product Category 2016 2017 Sales Growth/Decline
% of
Growth/Dec
line Status
Adventure
$
88,500.00
$
129,000.00
$
40,500.00 45.76%
Expect
ed
Comedy
$
61,400.00
$
58,330.00
-$
3,070.00 -5.00%
Warnin
g
Action
$
71,500.00
$
80,500.00
$
9,000.00 12.59%
Expect
ed
Thriller/Crime
$
36,745.00
$
34,907.75
-$
1,837.25 -5.00%
Warnin
g
Romance
$
30,320.00
$
25,600.00
-$
4,720.00 -15.57% Risky
Horror
$
34,472.50
$
32,748.88
-$
1,723.63 -5.00%
Warnin
g
Musical
$
720.50
$
440.00
-$
280.50 -38.93% Danger
Documentary
$
335.25
$
270.00
-$
65.25 -19.46% Risky
Animation
$
70,250.00
$
74,100.00
$
3,850.00 5.48%
Expect
ed