Cineplex Client Profile Essay

1406 WordsMar 23, 20156 Pages
Cineplex Inc. Cineplex Inc. is an integrated entertainment company, which accounts for a great share of the marketplace in Canada. Cineplex focuses primarily on motion picture distribution. The company has been committed to bringing convenience to customers in their entertainment life through a variety of services including theatrical exhibition, food services, online sale of home entertainment content, etc. Industry, regulatory &other external factors Industry Trends Revenue generated from theatre exhibition is a main component of Cineplex’s income. However, Box office revenues in the Canada decreased by 2.5% in 2013 (2013 annual report). In 2014, the motion picture industry had a decrease attendance resulting from weak film slate, lack of children movie during the summer vacation, and the delay of some films’ releasing date (3rd quarter 2014 Cineplex annual report). These situations may also increase company’s risks of losing profit from food service sales. Another main reason of why box office was decreasing in the industry would be increased offerings of in home movie from companies such as Amazon, Apple and Netflix, which are more focused on technological aspects of entertainment. It would be challenging for Cineplex to attract consumers’ interests of actually going out for a movie. Key competitors Cineplex is not in a highly competitive industry as itself is the leading company in the motion exhibitor industry in Canada with a market share of 79% until June 30. 2014 (and it is keep expanding with a company goal of opening one or two new theatres in every following year. Landmark with a market share of 10% is the strongest company in the industry who are competing with Cineplex but it is not a big threat towards Cineplex because Cineplex has good locations in metropolis. Cineplex, with aggressive acquisitions, would probably be able to

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