Cinema_test1 - Running head: A Horror Show at the...

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Running head: A Horror Show at the Cinemaplex 1 A Horror Show at the Cinemaplex STUDENT Business 499 INSTRUCTOR June 2, 2011
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Cinemaplex 2 Abstract This examination of the Cinemaplex industy provides a comprehensive analysis of what lies before the box office companies competing in this market. In 2007 box office revenues were at an all time high. 9.63 billion dollars, which was five percent greater than the year before. In addition tickets sales in 2007 were calculated at 1.4 billion sold. Although, there appears to be astronomical numbers in ticket sales and revenue, and the industry seems to be flourishing line never before. The industry has a storm brewing within its’ clouds and only those closely associated with the movie industry can see the turmoil and strain that is being created. It is quite apparent when one pulls the covers back to see beneath the blankets that theaters are starting to decline in numbers but movie screens are seeing a rise. It is also known that revenue is increasing but tickets sales remain the same and has not really change since 1997, where to this day 1.4 billion tickets were sold in comparison to 1.35 billion tickets were sold in 1997. In comparison ticket sells has seen a decline compared to 1946, when approximately four billion tickets were sold. Not only has there been a drop in ticket sales but also, in the average of how many movies are seen in year. In comparison, according to (Gove and Matherne, pg 217, par 1), in “1946 the average person would attend twenty-eight films a year compared to today whereas the average person today now only attends six films a year”. The irony of this is that the population of the United States continues to grow, but the popular age that primarily watches movies is growing slower. With Americans spending more leisure time entertaining themselves they are also spending less time at the movies as well. A few points that will be examined are; what level of competition can be anticipated, analyzing advantages and disadvantages of each of the top four competitors situations and strategic approaches used, monitor the financial
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Cinemaplex 3 considerations that affect the profitability of major movie theater businesses, discuss what strategic options are feasible given the situation facing industry participants. 1. Perform a comprehensive analysis of the five competitive forces. Discuss what level of competition can be anticipated amongst industry rivals. Rivalry among existing competitor: The big four have captured 42 percent of on screen theaters. The only competition they face is against one another. As soon as one makes changes the others quickly follow. One of the major competitive markets that can have an effect of overall movie attendees is the cost that each charge to attend movies at there facilities. Depending on their geographical market there will be a variety of ways this can happen. According to Gove and Matherne (pg 220 par 3) “the chains do serve different geographic markets and do
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This note was uploaded on 06/11/2011 for the course BUSINESS 499 taught by Professor Force during the Spring '11 term at Strayer.

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Cinema_test1 - Running head: A Horror Show at the...

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