Analyse of the Royal Theatre of Winchester Essay

3119 Words Oct 8th, 2014 13 Pages
2 February 2013

1st March 2013
Mark Courtice
Chief Executive Officer
Theatre Royal Of Winchester
Jewry Street
SO23 8SB

Dear Mr Courtice,

Re: Analysis of the Royal Theatre of Winchesters competitive market forces

Further to our recent meeting, I have undertaken an analysis of the macroeconomic market affecting the theatre of Winchester as well as the competitive environment of the market the theatre operates. Further an analyse of the theatre it self has been conducted, and assessed the theatres ability to deal with this changes. Below you will find an outline of the two most significant factors impacting the theatre.

An area for concern is the decrease in disposable income for the AB-socio economic group.
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Since the theatre of Winchester is a local charity theatre, and by concentrating on its local aspects it attracts customers who don’t want to pay higher ticket prices and are unwilling to travel a long way to attend bigger theatres.

Initial analysis shows that the Royal Theatre of Winchesters external competition has a significant influence on the market. In the last few years it has been an increased number of cable and satellite TV, as well as other entertainment products appearing in UK households. Broadband access is available in 70% of UK households, and it is expected to rise during 2013. Online entertainment is creating a diminishing demand for the theatre industry. With the increased number in broadband connection, more consumers are using the Internet to download or stream movies, especially the younger age group. Consequently, this will directly reduce the demand for a younger target market to watch plays at the theatre, as well as it will affect the overall demand for the Theatre industry. The theatre of Winchester will face a significant loss in revenue, as the costumer aged 17 and younger contribute about a quarter of the entertainment industry revenue. A strong brand image is very important in the theatre industry. This can help to sell tickets, especially when it is a strong competition from substitutes. Theatres selling tickets on their brand image and reputation, rather than for a

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