ASSIGNMENT 4

Assignment 4 - A Horror Show at the Cinemaplex



Assignment 4 - A Horror Show at the Cinemaplex

This case is based on identifying and assessing the recessionary challenges present within the movie exhibitors' businesses. It identifies several challenges faced by the movie exhibiting industry today including the recessionary pressures and issues faced by the cinemas as result of global crises and financial turmoil. Some of the technological advancements that have Cinemaplex concerned are; home theater systems, quick movie to DVD releases, video on demand, and internet streamlining (Hitt et.al, 2011).

Perform a comprehensive analysis of the five (5) competitive forces. Discuss what level of competition can be anticipated amongst industry rivals.

Ticket prices, while mind-blowingly high, did not deter moviegoers in the start or middle of the economic slowdown that began in 2008. In fact, escapism helped bring an increase in movie attendance. Ticket prices have gradually increased in the years since 2008 but hardly enough to explain a 6% year-to-date drop in attendance. Flat screens and high definition surround sound speakers have been getting bigger and cheaper every year. It's no longer a bank-busting endeavor to outfit a living room with theater-like sound and picture quality. Even 3-D televisions have hit the market, allowing consumers to add that final modern-viewing touch.

The Porter's diamond model best describes and outlines the national competitiveness mechanism. In order to determine the phenomenon of getting the international success Porter has determined the framework in four categories.

Industry Condition: The value added resources to an industry are the skilled labour, intensive capital markets and a fine infrastructure provision. These lead to a firm to optimize the advanced factors of production.

Demand conditions: Enabling industries to touch consumer minds and knowing what their needs and wants are.

Other related industries: Locating the supporting industries that encourage resource and knowledge sharing, assist in improving economic efficiency and optimizing the reserve pooling.

Strategies, structure and rivalry: Management styles and the career choices play an important role in this regard.

There are two chief categories as well that affect Porter Diamond model in many ways. These include the Chance and the Government. Competitiveness can also be measured in terms of chance. It influences modernization, scientific discontinuities and shifts in market. Government also plays a vital role in the above four factors. It either leaves a positive impact or a negative one. In the last, these factors join together to form a vibrant system that has a great impact on each other.

Describe the advantages and disadvantages of each of the top four (4) competitors' situations and strategic approaches.

Porter strategies including cost leadership, differentiation, and focus can be applied at the business level to achieve a competitive edge over the competitors. It is through this strategy that Cinemaplex will be able to capture the international market. To fulfil their mission and gain competitive advantage, Cinemaplex must adopt Porter's generic strategy which enables organisations achieve greater value at low costs by distinguishing their goods and services from the goods and services of their ...