Assignment Example on Struggling Movie Theater Survival Upscale

According to the statistics, most of you do not go to the cinema very often. Why not? What do you have against movie theaters?

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

The rise in streaming of movies through the internet has given a twisted turn in going to movie theaters such as Netflix where deep libraries in entertainment are recommendable. These have led to a decline in people viewing theater entertainment as a favorable option. We don't go to cinema movies since technology has improved making films accessible on the internet for download.

What are movies theaters trying to do to lure you back? Are people like you actually who they are targeting? What seems to be the primary demographic that movie theater chains are aiming with their latest refurbishment?

Movie theaters are making advancements in improving the audiovisual systems used in the theaters. The movie theater has also been renovated where seats have been built more comfortable. The target market is mostly based on young people who have a high spending habit. Night dates have also been included in the entertainment menu for couples where the seats have also been given a luxury recliners option for comfort (Schwartzel, 2018).

In fact, from what you know, how do movie theaters make so little money from ticket sales? In fact, from a fundamental Five Forces perspective, why are movie theaters in such a weak position strategically? Explain why all five forces are slightly unfavorable?

Rivalry among the companies due to the competitive environment has been rapid. Companies with high revenues have acquired other small companies increasing the market share they pose. The buying power of customers has shifted to the affluent where VIP options have been considered as a better option with a high price range. Effective substitutes through the internet and virtual reality options have decreased the turnout for movie theaters. Companies that have been in the industry for an extended period control a vast section creating a barrier for new companies to enter the industry.

Do the latest changes in movie theaters address this underlying issue? For example, are movie theaters trying to morph into something beyond just being movie theaters? Can they? If so, do these latest attempts offer some prospect for turning the business of cinemas around?

Entertainment theaters have tried to cater for its customers by improving the facilities by using visual aided technology. Sophisticated sound systems and screening with minimal replication at homes have been adopted to attract more customer with more preferences. Continuous tests have been made to enhance the productivity in the theaters by using test subject. These changes have increased revenue in some of the companies which have made a positive impact on the industry.

Reference

Schwartzel, E. (2018, April 9). Comfiest Seat in the House: Struggling Movie Theaters Go Upscale to Survive. Retrieved from https://www.wsj.com/articles/comfiest-seat-in-the-house-struggling-movie-theaters-go-upscale-to-survive-1523285886