Film and Movie Industry

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Comprehensive Exam Case Study Fall Semester: 2012 / 2013

The Movie Industry in 2008 (Case A & B)

MBA Student: Waseem Hasan Ismail
Submit to: TAGSB Administration
27 February 2013

Table of Contents

Introduction 3
The Movie Industry in 2008 (Case A) 4
PESTEL Analysis – External Environmental 4
Porter’s five Analysis 4
Profitability Model for movie theaters 4
Key strategic issues facing movie theaters 4
Strategic actions that exhibitions might consider 4
The Movie Industry in 2008 (Case B) 4
Outlook for the movie industry improved by 2011 4
Strategic actions might exhibitors take in 2011 and beyond to improve their situation 4
References 4


The movie industry had benefited from the technology
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Some other issues should be taken into consideration; Governments in the UK, US and Canada are discouragement tobacco deterrence campaigns by subsidizing top-grossing US films that contain smoking seen or adds (4).

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Porter’s five Analysis

(1) Threat of new competition: * Strong distribution network: there are 300 active distributors and one third of the cost of any typical feature is marketing expense. * Large capital for initializing a business: a large capital is required for establishing a new business in this industry whether a studio, distribution or exhibition. The high cost of production requires company to spend a lot of money. * Strong brand names: films from the top 10 studios produce over 90 percent of domestic box-office receipt. Strong brand names in the industry increase the new entry barrier. * Advanced technologies: the rapidly technology development makes it difficult to competitor to enter the market because competitor needs to acquire this technology prior to enter the market. * Customers are loyal to existing brand: companies need to spend resources to build a brand name. * The Experience: the learning curve is high the companies need to predict the customer’s needs and learn how to
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