Step 1: Read the Movie Industry Case that I uploaded. Step 2: Fill out the Industry Analysis Worksheet. You should use the completed worksheet to inform/guide the paper which is in the next step (Case write-up). The questions are specifically designed to get you to think about strategic decisions made by firms. The industry we are analyzing is the movie THEATER industry. The case begins with a discussion on the movie production/distribution industry. For our purposes, the movie production industry is the same as the movie distribution industry and is one of the main suppliers to the movie theater industry. Step 3: Write a case write-up with 6 pages, double space, MLA format, and 1-inch margin. And answer the following questions address in the paper. 1. There are two key suppliers to the movie theater industry- the companies that supply the actual movie to the theaters (movie production companies) and those that supply the movie theaters with snacks and drinks for the concession counters. What is the level of power each of these suppliers (High, Medium, Low)? Why? If you were a movie theater executive where would you focus your strategic decisions (movie tickets or concessions)? Why? 2. The case mentions that the cost of distributing movies to the theaters fell from $1500 to $200 when most theaters upgraded to digital projection systems. How does this cost change impact the price that movie theaters pay to get movie prints? In other words, what would you expect the price that movie theaters pay to get movie prints? Why? 3. What is the threat level of substitutes (High, Medium, Low)? Why? What kinds of movies are likely to be shown at movie theaters in response to this threat (Romance, Comedy, Action, Horror, Kids Movies, etc.)? Why? 4. What is the level of price competition in the movie theater industry? Why? Why are Regal’s and AMC’s average ticket prices about the same? What dimensions are they competing on? Why? There is no need to describe each force as the intro to the paper. You go right into answering the first question. The questions ask you to describe the most important forces/threats. It is ok to have an intro if that helps you introduce the paper and get you going. If you do decide to use an intro please keep it short (3-5 sentences max). The last paragraph or two of the paper should be a conclusion paragraph. Sum up what you analyzed and discuss what your findings mean for the profitability of the industry Please answer each question in a different section of the paper. It will force you to analyze each important force/threat separately and help you understand that each force is independent of the other forces/threats.
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