Comprehensive Exam Case Study Fall Semester: 2012 / 2013
The Movie Industry in 2008 (Case A & B)
MBA Student: Waseem Hasan Ismail
Submit to: TAGSB Administration
27 February 2013
Table of Contents
Introduction 3
The Movie Industry in 2008 (Case A) 4
PESTEL Analysis – External Environmental 4
Porter’s five Analysis 4
Profitability Model for movie theaters 4
Key strategic issues facing movie theaters 4
Strategic actions that exhibitions might consider 4
The Movie Industry in 2008 (Case B) 4
Outlook for the movie industry improved by 2011 4
Strategic actions might exhibitors take in 2011 and beyond to improve their situation 4
References 4
Introduction
The movie industry had benefited from the technology
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Some other issues should be taken into consideration; Governments in the UK, US and Canada are discouragement tobacco deterrence campaigns by subsidizing top-grossing US films that contain smoking seen or adds (4).
(3) http://www.poynerspruill.com/publications/Pages/LegalIssuesinFilmProduction.aspx (4) http://www.eurekalert.org/pub_releases/2011-08/icl-gst082211.php
Porter’s five Analysis
(1) Threat of new competition: * Strong distribution network: there are 300 active distributors and one third of the cost of any typical feature is marketing expense. * Large capital for initializing a business: a large capital is required for establishing a new business in this industry whether a studio, distribution or exhibition. The high cost of production requires company to spend a lot of money. * Strong brand names: films from the top 10 studios produce over 90 percent of domestic box-office receipt. Strong brand names in the industry increase the new entry barrier. * Advanced technologies: the rapidly technology development makes it difficult to competitor to enter the market because competitor needs to acquire this technology prior to enter the market. * Customers are loyal to existing brand: companies need to spend resources to build a brand name. * The Experience: the learning curve is high the companies need to predict the customer’s needs and learn how to
The Australian film industry is currently in a point of crisis due to the lack of audiences attending Australian films, hence creating a decline in the revenue received towards our national industry. However, this is not due to the lack of creative talent, it is rather the many underlying issues that don?t allow the Australian public with the awareness and accessibility of these films. These problems are within the distribution, marketing and funding of these Australian films, allowing the national Australian community to not seek for films made by people within their nation due to negative pre-conceived notions and the convenience of going to see a Hollywood Blockbuster. These issues are seen through the poor release of both critically received films, Jennifer Kent?s The Babadook (2014) and Hugh Sullivan?s The Infinite Man (2014), both not gaining a wide audience. Through these issues within the industry, Australian filmmakers have not been able to create the revenue needed for these films to branch out to be easily attained by the public.
The motion picture is the main driving force of the entertainment market, one of the biggest export markets, the United States. Movie industry is divided into three stages: studio production, distribution, and exhibition. Movie studios, is the lifeblood of the industry. No matter the size of the studio, it is a product of integration and release. The next stage is the distribution. The distribution is an intermediary between studios and exhibitors. Configuration of distribution needs to complete all the steps of membrane, including marketing, logistics technology and management. The manufacture and exhibitors are coordinated by distributors. Finally, theater owners, control single screen cinemas in the local community the reuse of national chain. Exhibitors are not completely independent dealer's vertical integration, and the pursuit of their own profit maximization strategy. The three main source of enterprises income: concessions, advertising, at the box office. The exhibitors seek profit maximization sales tickets and discount. In general, revenues and profits limited control. Attendance can be profitable sales and advertising to make concessions, but there are significant coupon limit per capita sales, sales price seems to have reached a maximum value. Advertising revenue and profits is still attractive avenue, but the audience hate.
The film industry in Louisiana has seen tremendous growth in the last decade due to a generous film tax credit program. The big motion picture companies seem to be bringing more pictures to be filmed in “Hollywood South” claiming the films create jobs and spur economic growth. Louisiana residents are wowed by the chance to potentially see movies filmed in their neighborhoods, the chance to meet stars and perhaps be an extra in a scene. Though many in the state are claiming that the film tax credit program is too costly to maintain.
Superhero Movie industry has been introduced to recently profound success as well as being exposed
In the food and beverage industry, this equates has a competitive advantage because it is easier to maintain an already established brand than to create a new one. This allows General
The United States is responsible for a film industry that is forever expanding and making a world of difference to films being screened worldwide. Primarily there are two types of films that a studio will choose to produce. The first being a blockbuster film which is defined as “a very popular or successful, usually big budget production.” Blockbuster films are generically very popular with the public and captivate the audience. The public become invested in these movies through the advertising of the film and have a strong inclination to watch the film when they’re released. Their intention as defined by Wikipedia is to“emphasize spectacle, star power, and high production value, all of which entail an enormous budget” (Wikipedia, 2015). The second type of film produced is an independent film produced mostly or completely outside of the major film studio system. Whilst both films have differing objectives and production techniques, they both share a common requirement; the ability to make a profit from their effort. The overall expenditure of a film is usually split into creative and technical costs which cover all bases of the costs involved with creating a film. It is therefore considerably important for a film to earn ample profit in order to not only cover the cost involved with creating the movie, but for a sizeable profit to be made.
exhibitors sought to avenge a dismal prior year at the box office. Domestic box office
A new trajectory for the independent film industry has just begun. The flexibility that mobile technology provides has not only accelerated the revolution indie film production, but also it has offered the opportunity for indie filmmakers to produce films by using an alternative filmmaking technique, with no budget or micro-budget. In recent years, the demand for agility and versatility life style has risen rapidly while the development of mobile technology has been advancing. Needless to say, software and hardware always go hand in hand, in which, a myriad of apps and gadgets have been invented to especially make compatible with iPhone and iPad. That said, independent film industry has just entered a disruptive stage.
Working in the field with a CS degree can have you working for advertising agencies, web design companies and digital artists, using your education to create software, multimedia and graphics. This type of degree can even have you working in the music industry creating high tech videos and special effects for concerts. devry In today’s film industry, special effects and computer animation films have become more popular, making students with this type of degree in high demand in the film industry. With a computer science degree you can also work for larger corporations exclusively building their computers and creating their software.
My entire life I have been fascinated with film and commercials. As a kid, I would stop what I was doing to watch a commercial. This has not changed through the years. My goal in life is to work in the film industry and work with video. This may have developed from my brother’s short term love for the video arts. Like most little brothers I followed in his footsteps through a lot of things and most of them would not stick. As I grew older I developed my own different ideals and likes. But, video just stuck with me. Even if film production doesn’t work out I have always had a childlike excitement for fighting fires. Being the person to save the day is something that everybody wants to do, but not everyone peruses this dangerous career.
Though tobacco advertising has been monitered in the media, it still directly a cause for youth today to begin smoking and using tobacco products. The history of media's glorification of smoking is something of which cannot be erased and it is something impossible to shelter children from. Children's minds are easily manipulated and with smoking still shown in movies, its simple to influence their decisions and give off the wrong impressions on smoking. Stores even place ads for cigarettes at a level where young children cannot see them but that doesn't stop them from vieweing ads on televisions, magazines, or again from movies they are allowed to watch. Tobacco companies pay movie industries and directors to have their products shown in a movie which as a result both companies would recieve a lump amount of money for product endourcing.(Stanton ) It's easy for movie producers to agree to this because they'd end up with a lot of money just to simply have a box of cigaettes with the logo showing on table which seems harmless but it's not.
First of all, a strong brand can be seen as the condition for organisations to expand products, offer more service, and introduce new products (Chernatony and McDonald, 2003). Secondly, a strong brand can lead to growth marketing communication effectiveness (Keller, 2009). ‘To build a strong brand, the right knowledge structures must exist in the minds of actual or prospective customers so that they respond positively to marketing activities and programs in these different ways.’(Keller, 2003, p. 140) Furthermore, Kay (2005) asserted that the strong brand can be seen as a resource of management, which make brand extension easier and useful to build distribution network. Companies are not treated by the intermediaries (Chernatony and McDonald, 2003). Moreover, companies are comparatively easier to change price if they have strong brands. As Henderson, et al (2003) said, a strong brand can allow for premium pricing even still remain loyalty customers, which help companies to survive in the intensive competitive market.
Ch.2 #1 - The motion picture industry is a competitive industry. Each year, more than 50 studios produce a total of 300 to 400 new motion pictures. This managerial report is based on data collected for a sample of 100 motion pictures produced in 2005 and will evaluate the financial success of these motion pictures by using 4 major variables – (A) Opening Gross Sales, (B) Total Gross Sales, (C) Number of Theaters, and (D) Weeks in Top 60.
The story of the American motion picture industry begins with the eccentric ‘photographic artist’, Eadweard Muybridge. In 1872, Eadweard Muybridge was sought out by former governor of California and railroad tycoon, Leland Stanford, because of his expertise with the camera. Stanford thought that if Muybridge could capture equine motion in a series of photographs, it would be possible to discern whether or not all four of a horse’s legs were simultaneously aloft at any point when running. However, initial series of photographs taken by Muybridge was unsuccessful in resolving Stanford’s query.
In the modern world, it is apparent to all that smoking cigarettes is hazardous to one’s health. In response, many activist corporations have established campaigns rebuking the use of cigarettes. Recently, some of these corporations have been pushing at the Motion Picture Association of America for censorship of cigarette smoking. The goal set in mind for the campaigns is the rating for movies that contain cigarette smoking to be upgraded to a restricted rating, meaning children under 17 must be accompanied by a guardian in order to attend the film. I declare that if the Motion Picture Association of America adopted the notion of restricting films with smoking, the film world would be losing emotional impact while gaining an oversaturated perception of sensitivity. In addition, the MPAA should not restrict smoking in films due to its probable ineptitude of preventing smoking and the normality of cigarettes in society.