Friday, July 3, 2020

Competitive Rivalry in the Movie Theater Industry - 550 Words

Competitive Rivalry in the Movie Theater Industry (Essay Sample) Content: Student's name Professor's name Subject details Date Competitive Rivalry in the Movie Theater Industry Introduction As new technological advancements continue to prevail across the movie industry, various investors feel the importance of engaging their investments in the movie industry. The current world population has had a great fascination with films and movies hence prompting a number of movie stores to sprout across America and other regions (Hudson, 3). Although many viewers are satisfied with the presence of several movie exhibition and theatres across the globe, many investors face the challenge of competitive rivalry hence not getting the lion's share of the market. Besides, increase in the creation of new movies in the market leads to new quality each time a new movie gets to the customers. In as much as competitive rivalry might negatively affect the movie industry, there are a number of benefits that have been attributed to competition in the movie and theatre industry. This paper primarily aims at carrying out a comprehensive research on some of the ways through which competitive rivalry has affected the movie industry (Mullins, 20). Methods used to gain competitive advantage Given the size of the market in the movie and theatre industry, it takes an excellent marketing strategy to develop a robust competitive advantage platform that will help the company in achieving the best out of its products. Movie studios should also strive to ensure that they use various techniques in making proficient and sure predictions on what the viewers might have in their taste and preference list. Thus, it is of great significance to initiate various tools of prediction such as Proctor to help in making market predictions and analysis before coming up with a new movie (Hudson, p.4). Competitive production schedules Hollywood being one of the most renown movie producers in the world has not put much stock in their store but uses various research analyses to determine which kind of movies to release to the market. In addition, Hollywood has always believed in the fact that the movie and theatre industry needs fresh movies and ideas every other time. As a result, Hollywood has achieved a significant level of competitive advantage against its competitors. From the perspective of new ideas, competitive rivalry has appeared to be among most positive ways of achieving quality. In order to counter the techniques used by Hollywood, other firms have come up with numerous movie studios from where the audience can get the latest releases before they are officially sent to the stores for sale. Besides, many movie theatres have used psychological marketing skills that involve pushing back the release dates in order to quell the audiences'anxiety as a new movie gets into the market. Competitive rivalry is, therefore, achieved through such methods so as to ensure that the attention of the audience id caught before another company releases a new film (Mullins, p.22). Additionally, to counter competitors in the movie industry, some studios ensure that they include a stronger player to enable the movie sell more than those of other competitors. Moreover, many researchers have found that seasonal featuring of movie stars is one of the best ways of keeping the attention of the audience to ensure that they do not wander to other movie theatres. Competitive rivalry in the movie industry has been one of the major drivers that lead to the production of high definition 3D movies theatres and improved video quality in the movie market (IBSIWorld, p.20). Factors controlling competitive rivalry According to Hudson (p.5), the primary positive factors that control competitive rivalry in the movie industry include the many barriers to entry of new firms. Currently, the actual cost of acquiring a digital technology screen is relatively high hence creating a financial barrier to entry of new firms. Hudson (p.6) asserts that the use of DVDs in the movie industry is one of the common methods through which movie theatres store their films. Evidently, the actual price of... Competitive Rivalry in the Movie Theater Industry - 550 Words Competitive Rivalry in the Movie Theater Industry (Essay Sample) Content: Name:Tutor:Course:Date:Competitive Rivalry in the Movie Theater IndustryIntroduction The film business has gone through major changes in the recent past. The business has come under tests especially from consumers who choose to watch movies from their homes as opposed to going to the movie theaters. It is clear that consumers have the power to choose how to acquire movies whether it is online or from a rental business point. Due to these deviations that have occurred in the business, the film industry needs to be appraised to understand the rivalry in the movie theater industry. There are various forces that cause rivalry in the movie theater industry most of which can be covered using the porter five model of business competition. The buying power in the film industry is presently high, which means that the buyers have got a variety of choices from which they make their purchases. In this business, the buying power was once low when technology had not developed in the world. Today, online streaming and other automations that allow consumers to acquire the films easily have changed the competitive buying power of consumers (Movie Theaters in the US 6). When buying power increases, this causes high competition in the industry which in turn makes the industry to become unattractive for investors. Another force that explains the plight of this industry is the power of suppliers in the film industry. The high supply power that has recently emerged means that movies can only be acquired from certain places and not others. This has made the industry to change because for a movie to be rented, it has to be acquired from the company producing it. High supply power means that the rental companies have to purchase from the same enterprise supplying the movie despite the policies they have put in place. This has elevated the competition within the industry which makes it unattractive for other investors. An additional competitive factor in the movie in dustry is the threat of substitute goods. This is rather existent in the movie business because all movies are separate entities from one another. The movies can really not be substituted by others. The threat of substitution however, has come about with online movie providers which include: amazon, Hulu and Netflix (Hudson 1). All these sites provide movie download services that are somewhat less competitive. However, with the low threat of substitute services, the movie industry certainly has become attractive to business persons. The threat of new entrants in the business is also low since there are many barriers that do not allow many business people in the industry. One of the major barriers that stands in the way of new entrants is the cost of beginning a movie supply business. The cost of making software and the ease of online streaming is a huge barrier to any new competition that can come into the picture. This low threat of competition therefore, makes it easy for many pla yers to invest in the industry. Rivalry in the movi...

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