CINEMA INDUSTRY

Cinema Industry

Introduction

Cinemaplex has changed with regard to technology development. Changes adversely affected the attendance at the theater. Revenues have increased, but only because of inflated prices for tickets, concessions and advertising revenues (Kotler Keller Brady 2009). Some of the technological advances that have Cinemaplex concerned, home theater systems, quick movie on the DVD-releases, video on demand, Internet access and rationalization. Their strategy is to make a profit from the sale of concessions and show sold to commercial customers, which resulted in a movie.

Discuss what level of competition can be expected among industry competitors

In the traditional economic model, competition among rival firms drives profits to zero (Ward 2008). When a rival acts in a way that causes a counter-response by other firms, competition increases. Intensity of competition is usually referred to as the killer, intense, moderate or weak, based on the aggressiveness of the firms in an attempt to gain an advantage.

In pursuit of an advantage over their competitors, the firm can choose from several competitive travels: we can consider four aspects of strategy:

Scope

Resource allocation

Competitive advantage

Synergy

Describe advantages and disadvantages of each of the four leading competitor's situations and strategic approach

Typically, the company is developing its international strategy, considering its overall strategy, which includes in its activities in the country and abroad (Gupta Gorinda rajan2003). The first component includes the geographical position of countries and regions of possible operations, and possible markets or niches in different regions. Since companies have limited resources and different regions offer different advantages, managers must choose markets that offer the best opportunity of the company.

The second component of the global strategy focuses on the use of company resources so that the company can successfully compete in chosen markets. This component of the strategy plan and determines the relative importance of various functions of the company and the bases of resource allocation on the relative importance of each function. For example, a company may decide to allocate resources based on product lines or geographic location.

Further, management must decide where the company can achieve competitive advantage over other companies in this industry. Management can determine its competitive advantage by identifying what the company does better (or could do better) than its competitors (Gupta Gorinda rajan2003). Companies can realize an advantage through a variety of methods, such as the use of superior technology, the introduction of more efficient organizational practices and distribution systems, and the cultivation of well-known brands.

Finally, the global strategy should include establishing a plan for a company that allows its various functions and activities for each other. For example, a company can use a single line of products to stimulate sales of other product lines and thus allows different parts of the business for the benefit of each other. Describe the financial considerations that affect the profitability of the major movie theater business

Most of the money that the theater occupies in from ticket sales goes back to the studio. In the first couple of weeks show a movie in ...