A Horror Show at the Cinemaplex Essay Example | Topics and Well Written Essays - 1250 words

A Horror Show at the Cinemaplex - Essay Example In terms of competition in the future, it may be noted that people living in larger cities are likely to gain access more quickly to film DVDs and sophisticated movie watching equipment which would pull them away from the theatres, while the smaller regional areas are likely to continue with their theatre activity for a much longer period. This leads to the inference that Regal and AMC may decide to shift their focus and compete for the smaller regional markets, to capture the higher numbers of the theatre going public. The other two exhibitors may opt to offer digital film viewing to enhance viewer experience. It must be noted however, that there is likely to be a decline in the business activity of all the four industry rivals and more and more movie goers tend to turn away from watching movies on big screens in favour of watching them at home on sophisticated TV and DVD systems with superior audio equipment. The other side of the coin is that competition among industry rivals coul d heat up more, as they compete fiercely for customers. Cinemark and Carmike could decide to consolidate their position and thereby offer stiffer competition to the two larger rivals; hence in a lean market, these industry players are likely to consider various business-savvy moves such as mergers and acquisitions in order to aggregate and consolidate the existing markets as they rapidly diminish and to improve their negotiation ability with studios. 2. Describe the advantages and disadvantages of each of the top four competitors' situations and strategic approaches. 2. The advantages of Regal’s strategy is focus on mid size markets using multi and mega plexes – this would ensure full occupancy and profit maximization. It is also the largest exhibitor in the United States, with 6335 screens and about 12 screens average per theatre, hence it has maximum access to film material to draw viewers in. The disadvantage is the high price, because at $7.43, it’s the highest among the leaders and consumers would be able to view the films for a lower price using other exhibitors. This factor would be especially relevant in recessionary times such as we have presently, because it could pull away many potential viewers to theatres operated by other exhibitors. Another disadvantage is that it has the highest costs per screen. AMC: This exhibitor operates 4585 screens but shows an average of 14 screens per theatre. This is the most significant advantage offered by this exhibitor because it provides consumers with maximum levels of variety in their film viewing. Another advantage this exhibitor has is the ability to pull in the crowds, because the theatres are located in densely populated, urban areas. They are not as expensive as Regal and for the major chunk of the viewing audience, i.e, the younger teen audiences, the greater variety and lower prices offer better options for a date or night out. AMC can also easily offer digital viewing, which would be yet another huge draw. The disadvantage is that because its audiences are mostly in urban areas, they are more likely to use alternative movie watching modes such as new audio equipment and DVDs which would reduce theatre going altogether. Another disadvantage is the high cost per screen Cinemark: One of its advantages is that it serves specifically targeted smaller markets Sole theatre chain for those markets Lowest average ticket price compared to other