Assignment #4: Case 16 “A Horror Show at the Cinemaplex?"
Professor: Tim Kinsey
BUS 499 - Business Administration Capstone
June, 4th 2011
Cineplex Corporation was incorporated in 1977 and it was one of North America’s longest movie theatre operations. The Cineplex Odeon Theatres are currently operated by Cineplex Entertainment in Canada and as AMC Theatres in the United States.
Cinemaplex is a movie theater that has experienced changes due to technology advancements. The change has negatively affected the attendance at the theater. Revenues have increased but only due to the inflated prices of tickets, concessions, and advertising revenues. Some of the technological advancements that have Cinemaplex concerned are: home theater systems, quick movie to DVD releases, video on demand, and internet streamlining.
The strategy is to earn revenue by selling concessions and showing sold advertisements to patrons who are drawn by the movie.
1. Perform a comprehensive analysis of the five competitive forces. Discuss what level of competition can be anticipated among industry rivals.
The threat of substitute products are the sudden emergence of the home cinema industry, such as big screen TV’s and home theater sound systems, broadband and video on demand, and quick movie to DVD release dates. High definition televisions are getting bigger and cheaper; surround sound systems, and HD Blue-Ray players pose a threat but only to a certain extent. People eventually are looking for an outlet and they must leave the house or become insane. This also falls under the threats of substitute products which exist but the experience is not the same. Cinemaplex differentiates their product by using better technology, and increasing the size of the screen and seats and making the theatres better geographically available. Accessibility to the theatre is...