They spend a lot of capital on acquisition and joint

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competitors as shown the table above. They spend a lot of capital on acquisition and joint ventures and expect to make a return over a long period of time. 5.2 Value Curve To illustrate the value curve, we picked Paramount and Fox Searchlight as Lionsgate’s two main competitors in the motion picture production industry. Paramount is one of the largest major studios in the industry which has the highest market share in the 2011. Fox Searchlight is an independent studio which has similar market share as Lionsgate and it is the closest competitor to Lionsgate.
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Lions Gate Entertainment On the horizontal dimension, we pick production quality, production budget, directors, actors, technical resources and variety of content as characteristic that customer would care about. First, production quality, it is the level of technical performance, reliability and quality control in the movies such as HD production and 3D production. This is meeting the customer’s demand on quality. Second, if a company produces a high quality with low budget, it would attract consumers to go and watch the movie. Third, actors and directors are important in the production because the popularity and performance of actor and directors know how to attract consumer. Also, when actors and directors get awards, this make consumer curious about the movie and buy the movie. Fourth, technical resource is the machines that they use in the movie making. Lastly, the variety of content refers to what genre of film that company produces. Everyone has different interest on different genre. Thereby, the number of genre that the firms produce can show how they fit in with customer’s interest. Compare Lionsgate to Paramount and Fox Searchlight, we can see that Paramount is more competitive and have better offering to customers. Since Fox Searchlight and Lionsgate are similar, so that their value curve are close but Lionsgate has better value to provide to customers. Therefore, Lionsgate has more value over Fox Searchlight. One thing that Lionsgate can differentiate itself from the two competitors is the production budget. Lionsgate produces low budget film with high quality where other competitors produce high budget film with high quality. Also, Lionsgate will has lower costs than others which can gain competitive advantage on it. SECTION 6: DYNAMICS 6.1 PESTEL In this section we study the changes that are external and internal to the company which have material influence on it. First we start by looking at the major trends which affect all the companies in the industry by studying the PESTEL factors (Economic, Social, Political, Legal and Technological) of the industry. 6.1.1 Economic Factors The global economic turmoil of the recent years has caused tightening in the credit markets, increase in the rates of default and bankruptcy and lower levels of liquidity. Also an overall decrease in economic, extreme volatility in credit risk, equity and fixed income markets. The
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Lions Gate Entertainment result of all these events cannot be predicted but a decrease in economic activities in the US and
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