Film and Movie Industry Essay

1590 Words May 23rd, 2013 7 Pages
Comprehensive Exam Case Study Fall Semester: 2012 / 2013

The Movie Industry in 2008 (Case A & B)

MBA Student: Waseem Hasan Ismail
Submit to: TAGSB Administration
27 February 2013

Table of Contents

Introduction 3
The Movie Industry in 2008 (Case A) 4
PESTEL Analysis – External Environmental 4
Porter’s five Analysis 4
Profitability Model for movie theaters 4
Key strategic issues facing movie theaters 4
Strategic actions that exhibitions might consider 4
The Movie Industry in 2008 (Case B) 4
Outlook for the movie industry improved by 2011 4
Strategic actions might exhibitors take in 2011 and beyond to improve their situation 4
References 4


The movie industry had benefited from the technology
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However, the differentiation comes from the picture and sound experience compare with the house high tech devices. * High switching cost: the exhibitors do have a high cost to switch the distributors and so do the customer can’t switch because of the variety of ticket prices, the prices is determined to serve different geographic markets. * Limited number of substitute: since the theaters replaced to complexes reduced the number of substitute in the market.

(3) Bargaining power of supplier: * High level of competition between studios and distributors reduce the bargaining power of supplier. * Limited number of supplier with low bargaining power. * Homogenous products reduce the bargaining power.

(4) Bargaining power of customer: * Distributor has a low bargaining power because of box-office deals and arrangements. * Customer requirements reduce the bargaining power of the buyer. * The makers are big brands and customers need specific requirements which reduce the bargaining power of the customer. * A large number of customers, the distributors and the exhibitions which reduce the customer’s deal bargaining power.

(5) Rivalry * The large size of the market makes firms compete on product development and product innovation to acquire

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