Movie Exhibition Case

In: Business and Management

Submitted By 2kimberlys
Words 356
Pages 2
Case 16
Movie Exhibition

The strategic issue in the movie exhibition case includes the decline in attendees. The customer base is declining and is hurting the net income of the exhibitions. The most profitable sectors are the concessions and advertising. An increase in the price of ticket sales may drive attendees even further away. If attendees keep decreasing, advertisers will withdraw their purchases and the entities will be left with concessions. The industry as a whole is feeling the effects of declining attendees. The overall fixed costs are out of the control of the operating management. In the exhibition industry the fixed costs are steep. This limits the profitability margins with declining attendees. The strategic issue is how to increase the number of attendees? The exhibitions do not control the types of movies being produced but the movies are the driving force for attendees. The fixed costs are the same at one attendee to several thousand attendees and an effective strategy of how to cover the fixed cost plus profits need to be developed.

The recommendation is for each individual exhibition to perform a balanced scorecard. Each entity can look at how well they are continuously improving and creating value, what are their core competencies and operational excellence, how satisfied are their customers, and how they are doing for their shareholders. After identifying which strategies are creating value and which strategies are not then the entity can develop new strategies to implement for the non- performing strategies. Management can develop strategies to think outside of the box and utilize the facilities for other operations rather than just movies. The exhibition industry is generating the majority of revenues from concessions and advertising. The management team can analyze the customer satisfaction principle…...

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