The Ability Of View Movies At Home

1506 WordsNov 30, 20157 Pages
The ability to view movies at home is also a major threat. There have been significant developments in home-viewing technologies. For instance, the average home entertainment system, which consists of a large HD television and high quality sound system, can be purchased for less than $1500. These advances in technology, coupled with lower prices, can prove to be a major threat to movie exhibitors. In the case, Paul Dergarabedian, president of Hollywood.com’s box-office division, referencing the trend toward online movie viewing mentioned, “There is more competition for the eyeballs of consumers.” This describes another significant threat for movie exhibitors. Streaming services such as Netflix and Hulu are growing at exponential rates. In addition to these easy, at-home viewing options, the wait time for movies to hit store shelves on DVD is shrinking. Both of these ideas offer the consumer a convenient substitution for going to the theater and concludes the threats in which exhibitors face. Strategy Formulation Strategic Alternatives Movie exhibitors need a strategy that will reach their desired strategic position among competitors in the movie industry. To do this the movie exhibitors would need to decide which particular competitive scope fits their business. The movie exhibition has two potential ways to create a competitive advantage, by having low cost or being able to differentiate their products from their competition. The four strategies the movie exhibitors can
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