The Movie Exhibition Industry: 2011 Essay

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MGMT-780-623 - Week 3 Assignment
The Movie Exhibition Industry: 2011

SWOT Analysis


Internal – new digital technology with 3D optional feature, buildings (whether rented or owned) are large (most are multi and megaplex style)
External – leverage in both the concession industry and the distribution industry Weaknesses

Internal – rely on concessions and advertisements, concession pricing, experience largely the same as every competitor
External – content, consumer income, marketing of movies relies on studio production companies, split sales with distributors


Internal – content choices, experience, concession options
External – growing middle class, rebound from recession Threats

Internal –
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Strategically choosing content that people can identify with or that tells a particularly interesting or horrific true story can do just as well as the big Hollywood productions. Independent films are becoming increasingly more popular and often rival mainstream movies at the box office when they are coupled with decent funding and distribution.1 The Indie Film Movement of the 1990’s is still strong and many artists seek to escape from the control of studio production. This means more content is available than ever before and this means more choices for the exhibitor.

A second way for a company to create a competitive advantage in the movie exhibition business is to offer an outstanding customer experience. Customer experience is something that is intangible and cannot be easily duplicated by competitors. Let’s examine the current experience for a customer in a movie theater. The ticket price is high, the concession offerings are few and over-priced, the seats are uncomfortable, the advertisements before a movie can sometimes last 15 or 20 minutes, the other patrons as well as the staff are often rude, the glow of cell phones is almost impossible to ignore, and most movies are all special effects with nearly no substance. Why on earth would anyone pay to go to the movies? I have not paid to go to the movie theater in several years. Not because I can’t afford to go, but because of the terrible experience I have while I’m there. For me, spending

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