Case Study Of The Movie Exhibition Industry

This case is a study of the movie exhibition industry and the variable trends that affect consumer choices. Through analysis of the general setting conditions and Porter’s five forces, we will develop a strategic mindset that could be applied toward business sustenance and probable expansion. The objective is to overcome negative commercial trends and apply focus on maintaining an efficient and stable market. This study process, will give us a better perspective of the industry participants and the economic obstacles they have to overcome.
Analysis
General environment analysis
Economic factors continue to play a role in our everyday lives. Fiscal stability is a crucial element that can alternate people’s behaviors, particularly during post-recession periods. Unfortunately for the movie industry, ticket sales have not been able to recover from the many turbulences in the past, resulting in a sales drop.
Sociocultural changes have been dramatic for the past fifteen years. The ongoing introduction of new technology, allows for an easy conversion from classic entertainment to digital, contemporary. Americans in general are greatly influenced by movie entertainment so keeping an optimistic approach by introducing innovative forms of theatre experience is crucial.
Demographic trends show a more positive future outcome. Movie …show more content…
In other words, it just doesn’t make any business sense to enter an already volatile market and absorb the unwanted risk. Reducing risk provides a challenge since there are no major investors who would take on the task to expand the industry to a productive source of capital. Competitors look for suitable strategic placement, usually in uncommon geographic regions, and all for the purpose of sustaining capacity. Electronic media manufactures could pose a threat if they decide to enter the market with a more sophisticated form of movie