Assignment: Based on the case “The Movie Exhibition Industry 2013” in the McGraw Hill article, answer the following questions using concepts and frameworks we have discussed in class. Answers should be completed in a short five page write-up using the templates provided below. Short answers / bullets are acceptable; however, you must include some level of detail / information regarding the trends and analysis you are including independent of the bullet points. The hard copy write-up is due by the start of class on February 25th. We will be having a discussion based on this assignment in class. It would be helpful if each group member had a copy of the finished assignment in front of him/her.
Please provide a cover page that includes the Assignment name, “Mgmt 478”, Section number (006, 007, 008, 300) and the group members’ names. The cover sheet is the only page that includes this information. Also each page must have a page number. All pages must have a staple. Failure to follow any of these formatting issues will incur a grade penalty. All words must be spelled correctly and all sentences must have correct grammar.
1a) Perform a general environment analysis. What are the relevant trends in the environment that are affecting the movie industry by the 5 segments listed below?
Political / Legal
1b) What are the biggest opportunities and threats in the industry? (Pick no more than 2 of each and elaborate in 3-4 sentences)
2) Based on an analysis you complete, is the movie exhibition industry an attractive and profitable industry in which to participate? (After completing the template, include a short 2-3 sentence assessment of overall attractiveness). Ensure that you are specific with your analyses of threats (e.g. high capital requirements is not enough, for what would capital requirements be high?)
Industry Definition: Movie exhibitors
Who / What are they?
Analysis of Threat (Use (+) to indicate adds to the threat, (-) indicates decreases threat – e.g. high capital requirements would be a (–) for potential new entrants) Level of Threat (High / Medium / Low)
Bargaining Power of Suppliers
Bargaining Power of Buyers
Overall Profitability of the Incumbents
Overall Attractiveness to Entrants (Barriers to Entry)