Topic: Horror Show at Cinemaplex

Horror Show at Cinemaplex

Introduction

Cinemaplex is a huge movie house that has actually seen numerous changes that keep on happening due to technology update and advancements. The numerous changes that have occurred with the movie theatre has given actually negatively seen through the number of people who actually come in to watch a movie at the theater. There is definitely an increase in the revenues but this is just because of the high prices of tickets and the advertising revenues. The technological advancements that have actually made Cinemaplex see a downfall in the upcoming years are the amazing technology of home theaters, movie being usually watch through DVD s instead of on the TV, and internet being so easy to access that things are just a click away (Eisenhardt & Zbarecki,1992).

Discussion

Level of competition amidst industry rivals

When using the five competitive forces approach in this case, it can be observed and studied that the competitive scene in the film industry is intensely strong. The reason being that the top four competitors have grabbed the major chunk of the market share, ending up into a high concentration ratio. As there are just a few competitors holding major chunks of the market share, there is minimum competition. When there is minimum competition the film industry is considered to be extremely disciplined (Drucker,1974). But if the discipline needs to break any one of the major four competitors will have to find a competitive advantage to rule over the other rivals.

High fixed costs will aid in making the competitor to produce more services and attain a low costs over these services. And also low costs of will aid the customer to easily switch from employing the services of a competitor over another. In addition to the above said they all would have to come together and act for high rivalry to arise between competitors. As there is proper brand identity of each one of the competitor and each one has made its own niche targeting a specific demographics. The leading competitors namely Regal, Cinemark, Carmike and AMC grab a good 42 percent of the market share but as far as the differentiation in customer offering is concerned it is very minute. Regal caters to mid-size markets employing multiplexes and megaplexes. While AMC highlights the urban population. Cinemark focuses on smaller markets and Carmike caters to small to mid-sized markets both.

In all the four major theaters usually the same movies are up at the same time and there is a very minute difference in ticket prices (Robert,1990). Hence, consumers may look up for a choice that is close by, has a good parking capacity and yes has some nice restaurants nearby.



Advantages and disadvantages of each of the top four competitors' situations and strategic approaches

Obstacles for entry into the megaplex industry for new entrants are to be really thought over but are not as tough as in other businesses which turns to be an advantage it ...