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Week 3 discussion-Management Strategy and Policy

Week 3 discussion-Management Strategy and Policy

Q • Review trends in the general environment that affect the movie exhibition business, and establish whether their effects are helpful or harmful to theater owners. • Assess the five competitive forces at work in the industry environment. Identify the forces that threaten the profitability of prevailing movie circuits, and prescribe the level of competition that can be anticipated amongst industry rivals. • Perform comparative situation and strategy analyses for the four companies with dominant market share. What are the advantages and disadvantages for each of the industry’s top competitors? • Evaluate the revenue sources and major costs for movie exhibitors. Discuss how the income structure of their business impacts their financial results. • Summarize your findings and the current situation for exhibitor circuits. • Based on your analysis, what strategic actions do you propose for theater operators to increase the appeal of the theater setting to attract the audiences needed for improved performance under existing industry conditions?

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It can be said that after reading the case study, it was observed that there are many effects that can be considered harmful to the theatre owners. There is a decline in the overall revenues and admissions from most of the people who used to attend the theatre and there is also a rise in the price which can be considered greater than the rate of inflation. This tends to provide limitations on the people who are able to afford to go to watch a movie. Over the years, there has been a shift from domestic films to the international films but some people will never stop going to approach that they are not interested in anything that is international.