Background of PVR Limited
PVR cinemas are one of the cinema chains in India. The company began its joint venture agreement between Priya Exhibitors Limited and Village Road show in 1995.It began its commercial operations in June 1997.The Company as in entertainment industry originated as Priya Cinema in Rahol Mackija in South Delhi.ICICI Ventures invested 40 crore in PVR in 2003 when Village Road show decided to pull out off the partnership.
In India the largest and the most premium film and retail Entertainment Company is PVR.It has redefined the entertainment way which the customer needs in India from 1997.
PVR as of now has 519 screens in 113 locations running across 46 cities in India. Recently it has ventured into a new concept of cinema
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1. KEY RESEARCH (Individual Contribution)
With respect to the collection of various information, facts and figures in order to complete the group report, individually I played a very important role so as to get a smooth research upon various tasks that were assigned. Taking all these things into consideration my research work led to the contribution in Task 1 and Task 2.For both of the tasks my contribution insights the external analysis of PVR Limited by Porters five forces and strategic capabilities for the same using Value Chain analysis. The table below shows areas of my contribution for each tasks.
Task Analysis Framework
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Close to 10,000 single-screen cinemas and 5 big multiplexes (PVR, BIG, INOX, FUN, CINEPOLIS, and DT Cinemas). Cinema watching can be differentiated by augmenting the experience with extra luxurious facilities like comfortable seating, multi-cuisine food, parking and technological advancements in projecting cinema and private area etc. But the movie itself is the core of the entire movie experience. Cinepolis has a Loyalty Program but the market penetration of Cinepolis is low. PVR and BIG Cinemas have co-branded credit cards with leading banks. Switching cost is low and there is not any significant reason for any individual to show loyalty to any specific player. Intra Industry Rivalry is high.
VALUE CHAIN ANALYSIS
Value Chain Analysis is a useful tool for working out how you can create the greatest possible value for your customers. In business, we're paid to take raw inputs, and to "add value" to them by turning them into something of worth to other people. A value chain is a set of activities that a firm operating in a specific industry performs in order to deliver a valuable product or service for the market.
Primary Activities
• Inbound
There are a lot of strong competitors: Blockbuster, Apple, Red box, and etc… Beside, product in this industry is not differentiated. On the other hand, the products and services are not difficult to imitate. This market is very competitive.
4. Din, Yangon. (2007). Titled: The dynamics of the movie industry: Theatrical Exhibitions & DVD rentals. The University of Wisconsin.
36). The cinema industry is being affected by the fast turnover rate of movies playing at the theatre to online releases, the increasing trend of online streaming of movies, and adopting sustainable practices. Cinemas are facing a more competitive environment due to the growing accessibility of home theatres and evolving consumer preferences. However, the major issue within the industry is the presence of online movie streaming becoming more popular. Canadians are presented with many platforms on which they can access content on numerous devices as well as at home. As the market and media platforms continue to evolve, it is important that each company in the cinema industry understands how to keep up technological developments and engage with their
Competition between theaters often comes down to distance from home, convenience of parking and proximity of restaurants. Innovations by one theater chain are quickly adopted by others. The differing approaches of the theater chain companies are reflected in their cost of fixed assets per screen.
A value chain analysis is a strategic analysis of an organization that uses value creating activities (Dess, McNamara, & Eisner, 2016, p. 76). The value chain analysis describes a company’s activities and relates them to an analysis of the competitive strength of the company
is growing outside of the USA. This kind of growth includes the large countries that previously specialised in film production. For countries such as China and India, the annual release of films has grown progressively for the past decade, followed by a forced growing purchase power and investments in cinemas (Lorenzen, M. 2008). The American film industry must, in a way, watch its back. Especially when the amount of small film countries, such as Denmark and Switzerland, has grown. The smaller countries have attracted attention by not only up-scaling their production, but also winning market shares from Hollywood. Other new filmmaking countries are also on the rise, with Korea, Mexico etc. joining the market, who bring cheaper production technologies to their advantage (Lorenzen, M. 2008).
To provide an analysis and make recommendations to increase revenue in the movie exhibition industry.
Value chain analysis looks at every step a business goes through, from raw materials to the eventual end-user. The goal is to deliver maximum value for the least possible total cost. It is a systematic approach to examining the development of competitive advantage. The most basic breakdown of primary functions includes inbound logistics, operations, outbound logistics, sales and marketing and service. People should use the other models and frameworks within this software to further differentiate between, and add to, these domains. Product Innovation is one area that is not normally included in the de jure model but is often included in the de facto model. Value Chain Analysis describes the activities that take place in
A market analysis was first taken out on Reading Courtenay; one cinema under the Reading brand name situated in Wellington. From this analysis, it became apparent that the Internet was one of the company’s largest competitors. Upon further research, the problem revealed to be at such a large level, one single cinema would not be able to control it alone. The view for the marketing plan had to be changed and instead would now support a company-wide view.
Hollywood movies employ creative and bold methods to market their movies. A good deal of promotion and advertising is targeted to getting people into theatres. Media blitzes are launched to tout the movies weeks before its release. Posters on buses, billboards, designed T-shirts, websites are used to promote Hollywood films. These films are then distributed to a diverse audience. Unless they are extremely unsuccessful, Hollywood movies are always first shown in cinemas across the world, before they are released on DVD. Nollywood films, on the other hand, do not put in a lot of money and effort on the marketing of their films. Other than the movie posters which are usually seen at the selling point of the films, not much advertising is employed. As all Nollywood films go straight to DVD and VCD discs, the industry thrives on direct-to-video marketing. As many as thirty new titles are delivered to Nigerian stores and market stalls every week. Producers rely on the fact that with this outpour of releases, their movies would most certainly be picked up among the crowd; hence, employing further marketing practices is unnecessary. Currently, the available cinemas in Nigeria do not exhibit any Nollywood movies.
The competitive forces in the movie rental industry are quite strong, as I will explain through the five forces model. There are a vast amount of substitutes for watching a movie. You can go to a play, sporting event, concert, out the lake/beach, go for a run, watch regular television, go shopping; I could go on and on. Also, torrenting or pirating movies is growing increasingly popular. Buyers have a strong presence in this industry mainly because they are picky about how much they will pay to rent or stream a movie. With the amount of substitutes and their pickiness, they make this
film industry is the largest of any industries with India making the most number of movies per year than
With the introduction of new technologies and the development of electronics products, people are now having more opportunities to view movies. However, home viewing is still the most popular way of watching movies. Accordingly, Movie rental has become an industry. This essay will give a detailed analysis of the global leader in the movie rental industry, Blockbuster.
UTV has mastered the specificities of the Indian M&E industry and put itself in key position to be successful and benefit from the growth potential in India. With its diversification strategy and the switch to a business-to-consumer (B2C) model, Screwvala moved UTV to a more scalable model and in a position to control its destiny. Researches have shown that the film entertainment was one of the fastest-growing industries because it was the primary source of content for television. By entering and investing heavily in the film industry business UTV generated a driver for his other verticals, despite there is a lot of
Value Chain Analysis describes the activities that take place in a business and related to the business core competencies. It can classify by primary activities and supporting activities.