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Determinants of Environment

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new title. This shortened window has alsoconvinced some to forego the theater entirely, as there are many titles that they are willing towait for. Expanding this problem is the fact that the avenues a person can take to see thesemovies has increased. No longer is the local video store the only place to rent a new film; rather,it hardly seems a viable option anymore, with many shutting their doors due to lack of business.Netflix, Hulu, Amazon...the list of legitimate businesses that are operating video subscription orstreaming services is growing by the year, each one chipping away at the cinema’s market share.
35. 33Add any and all illegal file sharing, and the reasons to go to the cinema just don’t add up to thecost of a ticket for many anymore. (Vanairsdale, 2010)IV. Strategy FormulationA. Strategic Alternatives and Evaluations When looking towards improving or developing strategies, all three of these companieshave to consider alternatives that will help them to do three major things. First, all three of thesecompanies have substantial levels of long-term debt. Decreasing the amount of money they owein the long-term is key. Second, these companies need to work towards getting more out of theirassets. These companies are dealing with very expensive assets that in many cases areunderperforming due to a drop in demand for their overall operations. Third, they need to makegoing to the movies exciting again. If increased foot traffic in these theaters isn’t generated, thenthe companies won’t be able to grow. (Regal, 2012), (AMC, 2012), (Cinemark, 2012) From a business level prospective none of these companies have been able to leveragethemselves with a cost-leadership strategy. All of these theaters have an average ticket price ofaround $6-$8, when looking at pricing in all of their geographic regions. The theaters couldchoose to utilize a flexible pricing model that would allow for tickets to be priced based ondemand. This would have to be worked out contractually with studios, but could ultimately havetheaters bringing in a higher price per admission for new blockbusters and at the same timeseeing a rejuvenated life span for less popular films because they’d be offered at a lower price.(Zeitchik, 2011) A flexible pricing model for tickets could also have adverse effects. Demand for a moviemight be so high, that the price of a ticket is driven up to the point where it angers consumersand actually hurts attendance numbers. Also, on the other end if less popular films become
36. 34cheaper, then that will mean that the operating margin for those ticket sales will be even lower.(Zeitchik, 2011) Beyond potentially underutilizing cost-leadership strategies, there is also a limitedamount of differentiation within the market. All cinema chains offer mainly the same productsand services. There is a lot of room for creativity when it comes to showing alternative forms ofcontent, such as televised professional sporting events, ballets/plays, or even concert footage.Theaters could also put more time and money into offering a wider arrange of concessionchoices, as that’s where they make a majority of their profit. That being said, diverging awayfrom the standard snack foods and soda to higher quality food items will increase their initialconcession supplies expense. There are no guarantees that a positive return on investment willcome of it. (Snider, 2011) Beyond showing alternative content, all three of the major movie theater chains havestarted to differentiate themselves by providing a premium theater experience. These kinds ofofferings boast improved digital/3D projections, enhanced surround sound, and higher qualityamenities. The issue remains that these theater formats also command higher operating costs,which translates to higher admission costs for the consumer. Since the three major theaters havestarted the production and expansion of these establishments at relatively the same time, theyhave seemed to lose a first-mover competitive advantage. (Regal, 2012), (AMC, 2012),(Cinemark, 2012) All three of the movie theater companies being analyzed utilize corporate levelacquisition strategies. The chains have all been able to command key regions of the U.S. marketthrough the use of acquisitions. Also, AMC and Cinemark have utilized acquisition strategies toexpand internationally, with operations in the EMEA, Asia/Pacific, and Latin America markets.
37. 35China is currently the fastest growing country in terms of movie theater demand, but yet only hastwo American movie theaters, both owned by AMC, operating within the nation (AMC, 2012),(Cinemark, 2012). The country currently has 6,200 operating movie theater screens and thatnumber is expected to double by 2015 (Pierson, 2011). Latin America is another popular market for expansion and only Cinemark has takenadvantage of this rapidly growing region. Brazil tends to be the most popular country within thisparticular market, mainly due to an increase in the teen population which has spurred a higherdemand for American and international films (Cinemark, 2012). Beyond Latin America, EMEAis a very large market, but there is limited involvement from American movie chains because ofvarying theatrical release dates (Brooks, 2012). Countries’ governments control wheninternational movies will be released for their domestic market. As previously stated largeEuropean countries, such as Italy, release movies from international markets much later thanother countries. This is partially done to allow domestic films to reach their full potential(Brooks, 2012). With nationwide drops in movie theater attendance, theater chains may start choosing todiversify their operations to offer more than simply a theater experience. For example, AMC hasstarted to offer Dine-In theaters, which offer an array of dining and lounge options forconsumers. Currently 13 of AMC’s theaters are considered Dine-In theaters that offer amenitiesfrom their self-formed Fork and Screen in-theater restaurants and MacGuffin’s pubs. Thisconcept of diversification can also be conducted through partnerships with popular existingrestaurants chains to generate further demand for movie theaters. Currently Regal and Cinemarkdo not offer any form of restaurant or lounge areas within their theater locations. (Regal, 2012)(Cinemark, 2012).
38. 36 Movie theaters have the ability to diversify their operations to offer consumers a moreextensive movie theater experience, but they can also use the concept to help themselves increaseexhibition operating margins. As previously mentioned, in 2011 Regal and AMC entered a jointventure to open the independent movie studio, Open Road Films. This will allow these twotheater companies to produce and distribute independent and less commercial films in-house,which in the future will allow them to generate much higher operating margins on specific films.This strategy has not yet been utilized by Cinemark, but is one that could prove to increase theprofitability of movie theater chains. (Regal, 2012), (AMC, 2012), (Cinemark, 2012) Although each of these companies has the ability to utilize corporate-level strategies togrow and diversify their operations, these strategies can also be used to consolidate or dispose ofexisting locations. For these companies to undertake new exciting strategies, they have nochoice, but to first eliminate some of their future debt. This could be done by selling some oftheir assets in the form of property, plant, and equipment. (Regal, 2012), (AMC, 2012),(Cinemark, 2012)V. Strategic Alternative ImplementationA. Action Plan Staying consistent with the goals of decreasing debt and increasing asset return ratios,Regal, AMC, and Cinemark need to strictly measure the profitability of offering premium movieformats, as their primary business level strategy. These companies have all seen an increase inrecent demand for 3-D movies, but ROI calculations need to be reviewed to understand if futureinvestment in 3-D and other premium formats are generating profit margins that are suitable forthe amount of risk they’re undertaking. (Regal, 2012), (AMC, 2012), (Cinemark, 2012)
39. 37 From a corporate level perspective the growth of the movie theater industry will dependupon how well theater companies are able to profitably diversify their operations. That beingsaid, before the theaters can conduct further diversification strategies they need to decrease theiramount of long-term debt, which will improve their overall cash-flow. The theater chains shoulddo this domestically by closing underperforming theater locations and consolidating theaterlocations in states where they have a wide range of cinemas. All three companies are spreadvery thin in large states such as Alaska, Arkansas, Missouri, Minnesota, and Kentucky, offering1-2 theaters throughout the state. Due to the lack of involvement in these areas, it’s obvious thatthey don’t view these regions as ones that contain high levels of demand for their service. It’s inthese areas, where their level of brand awareness is probably scarce, that they should focus ondisposing a majority of their operations unless they consider them to be highly profitable.From another prospective, all three theater chains have the same number one market, in terms oftheater locations and screens; California. Although California is third largest state in the country,these theaters could strategically consolidate their operations to generate larger standalonetheaters in their busiest locations. (Regal, 2012), (AMC, 2012), (Cinemark, 2012) Once these companies have decreased their long-term debt obligations, more focusneeds to be placed on expanding to China. AMC licenses its trademark to two theaters withinthe country, but should work to increase their overall brand presence as consumers are showing arapid increase in demand for digital movie projection. Cinemark has been very successful inLatin American countries and has shown that they’ve been able to transition their business modeloverseas. Cinemark should now take a stab at the Asia/Pacific market, primarily China to see ifthey can further expand their international presence. (AMC, 2012), (Cinemark, 2012)
40. 38 To this day Regal still doesn’t operate outside the U.S.; they have shown that the U.S.market is very profitable if targeted in the right areas, as they continue to generate the highestbox-office revenues. With that in mind, Regal should expand to Canada through strategicacquisitions. Canada is unaffected by theatrical release windows the way that many Europeancountries are and overall exists as a highly untapped market for U.S. movie theater firms(Brooks, 2011). Beyond international expansion, Regal and Cinemark should diversify their operations toinclude dining amenities at some of their locations. Unlike AMC, with generating their own puband restaurant, Regal and Cinemark should generate partnerships with popular restaurant chainsthat aren’t that prevalent in their major regions. The idea behind this is that a restaurant chainlooking to expand would get guaranteed exposure in a movie theater setting. A prime restaurantcandidate for this kind of diversification would be Chipotle Mexican Grill, as it’s a rapidlygrowing company that appeals to a wide variety of consumers and offers a very limited amountof products that directly infringe upon the movie theater concession market. Texas andCalifornia, two of Regal and Cinemark’s larger markets, have very few, if any, Chipotlelocations. If Chipotle were to expand through partnerships with these theaters it couldpotentially increase the demand for their brand in new regions and help through cross promotionto bring some excitement back to existing movie theater locations. (Regal, 2012), (AMC, 2012),(Cinemark, 2012) (Chipotle, 2012) The last corporate-level strategy that all these firms have to look towards is theopportunity of either partnering with or starting their own independent movie studio. Regal andAMC have already done this with Open Road Films, but Cinemark has yet to branch into thedistribution business. An operational segment of Cinemark Holdings, Inc., CineArts theaters,
41. 39which specialize in showing independent and foreign films, provides this company with anopportunity to partially evolve into an independent and foreign film production company.Cinemark could finance this strategy with existing current assets in the form of cash and cashequivalents, as they reported over $550,000,000 in total current assets. (Regal, 2012), (AMC,2012), (Cinemark, 2012)
42. 40 ReferencesAmerican City Business Journals. (2010, May 25). Regal Entertainment to acquire 9 AMC movie theaters. Denver Business Journal. Retrieved http://www.bizjournals.com/denver/stories/2010/05/24/daily4.htmlAmerican Movie Classics Company, LLC. (2012). Investor relations: Read all about it. Retrieved from http://www.investor.amctheaters.com/index.cfm?WT.mc_id=nh_aboutBarnes, B., Cieply, M. (2009, February 28). In downturn, Americans flock to the movies. The New York Times. Retrieved http://www.nytimes.com/2009/03/01/movies/01films.htmlBond, M. (2011, November 13). More theaters offer alternative programming. USA Today. Retrieved http://www.usatoday.com/tech/news/story/2011-11-13/movie-theater- alternative-programming/51186488/1Brooks, B. (2012, February 20). Piracy has negligible influence on the U.S. box office: Study. Deadline Hollywood. http://www.deadline.com/2012/02/piracy-has-negligible-influence- on-u-s-box-office-study/Castro, D. (2010, October) Better enforcement of online copyright would help, not harm, consumers. The Information Technology & Innovation Foundation. Retrieved http://www.itif.org/files/2010-copyright-coica.pdfChipotle Mexican Grill. (2012). Company website. Retrieved www.chipotle.comCieply, M. (2011, July 31). Changing a premium for movies, at a cost. The New York Times. Retrieved http://www.nytimes.com/2011/08/01/business/media/as-ticket-prices-rise- theater-audiences-shrink.html?pagewanted=allCinemark Holdings, Inc. (2012). Corporate profile. Retrieved http://phx.corporate- ir.net/phoenix.zhtml?c=192773&p=irol-irhomeEnvisional Ltd. (2011, January). Internet usage bandwidth estimation. Retrieved http://documents.envisional.com/docs/Envisional-Internet_Usage-Jan2011.pdfFenn, D. (2011, March 23). Why Your Customer Loyalty Program May Be a Huge Failure. CBS Money Watch. Retrieved http://www.cbsnews.com/8301-505143_162- 41841718/why-your-customer-loyalty-program-may-be-a-huge-failure/
43. 41Funding Universe.(2012). Regal Entertainment Group. Retrieved http://www.fundinguniverse.com/terms.php?KeepThis=true&TB_iframe=true&height=5 00&width=600Friedman, J. (2006, October 10. Cinemark to acquire Century Theaters. Los Angeles Times. Retrievedhttp://articles.latimes.com/2006/aug/10/business/fi-century10Hitt, A. M., Hoskisson, E. R., Ireland, R. D. Strategic Management: Competitiveness & Globalization (2010). Florence, Kentucky: Cengage Learning.Hoovers, Inc. (2012). Industy profile: Movie theaters. Retrieved http://subscriber.hoovers.com.lasproxy.minlib.net/H/industry360/overview.html?industry Id=1429Hoovers, Inc. (2012). AMC Entertainment Inc. Retrieved http://subscriber.hoovers.com.lasproxy.minlib.net/H/company360/overview.html?compa nyId=11678000000000Hoovers, Inc. (2012). Cinemark Holdings Inc. Retrieved http://subscriber.hoovers.com.lasproxy.minlib.net/H/company360/overview.html?compa nyId=42037000000000Hoovers, Inc. (2012). Regal Entertainment Group. Retrieved http://subscriber.hoovers.com.lasproxy.minlib.net/H/company360/overview.html?compa nyId=105885000000000IMAX Corporation. (2012). Corporate overview. Retrieved http://www.imax.com/corporate/Lowe, K. (2012, February 4). Cinema’s digital takeover: The decline and fall of film as we know it. Deadline Hollywood. Retrieved http://www.deadline.com/2012/02/cinemas-digital- takeover-the-decline-and-fall-of-film-as-we-have-known-it/Martin, A. (2011, December 26). TV prices fall, squeezing most makers and sellers. The New York Times. Retrieved http://www.nytimes.com/2011/12/27/business/tv-prices-fall- squeezing-most-makers-and-sellers.html?pagewanted=allMondello, B. (2005, June 17). 100th Anniversary of first-ever U.S. Movie Theater. National Public Media, LLC. Retrieved http://www.npr.org/templates/story/story.php?storyId=4707873
44. 42Motion Picture Association of America. (2011). Theatrical Market Statistics 2010. Retrieved http://www.mpaa.org/Resources/93bbeb16-0e4d-4b7e-b085-3f41c459f9ac.pdfNational Association of Theater Owners. (2012). Theatrical release windows. Retrieved http://www.natoonline.org/windows.htmNeuman, W. (2011, April 1). Calorie-counting rule to leave out movie theaters. The New York Times. Retrieved http://www.nytimes.com/2011/04/02/business/02menu.htmlO’Donnell, J. (2011, January 4). Home theater gear is a booming business. USA Today. Retrieved http://www.usatoday.com/tech/products/2011-01-04-home-theater-gear_N.htmPaxman, A. (1999, January 12). Cinemark buys out Latin partner Conate. Variety. Retrieved http://www.variety.com/article/VR1117490168?refCatId=18Platt, E. (2011, December 13). The collapse of Best Buy in two simple charts. Business Insider. Retrieved http://articles.businessinsider.com/2011-12-13/markets/30510888_1_sales- tablet-market-difficult-comparisonsPuente, M. (2010, March 14). Movie theaters are tuning up the luxury with food, bars, seats. USA Today. Retrieved http://www.usatoday.com/life/movies/news/2010-03-12- 1Aluxtheaters12_CV_N.htmRegal Entertainment Group. (2012). Company Overview. Retrieved http://investor.regmovies.com/phoenix.zhtml?c=222211&p=irol-homeprofileSinger, M. (2008, January 16). Regal Cinemas to Acquire and Consolidated Theatres. BigScreen Journal. Retrieved http://www.bigscreen.com/journal.php?id=969The Economist Newspaper Limited.(2011, February 17). Hollywood goes global. The Economist. Retrieved http://www.economist.com/node/18178291Vanairsdale, S.T. (2010, September 15). What well lose when we lose Blockbuster. Esquire. Retrieved http://www.esquire.com/the-side/hollywood/blockbuster-going-out-of- business-091510Verrier, R. (2011, September 27). Flagship theaters’ Cinemark lawsuit a test for independent chains. The Los Angeles Times. Retrieved http://articles.latimes.com/2011/sep/27/entertainment/la-et-theater-battle-20110927
45. 43Vincent, J. (2010, June 18). Local movie theaters using technology and clever marketing to keep audiences in the seats. Press of Atlantic City. Retrieved http://www.pressofatlanticcity.com/life/article_bd64a3d0-9267-55ce-a716- cb0b172f2426.htmlWalker, D. (2008, January 2). Average TV size up to 60-inch by 2015 says Sharp. Tech Digest. Retireved http://www.techdigest.tv/2008/01/average_tv_size.htmlWaxman, S. (2011, April 3). AMC, Regal to launch new distribution company: Open Road. Wrap. Retrieved http://www.thewrap.com/movies/column-post/amc-regal-launch- new-distribution-company-open-road-25240Webb, L. (2009, January 22). America’s second largest export. The Christian Broadcast Network. Retrieved http://blogs.cbn.com/thewebblog/archive/2009/01/22/americas- second-largest-export.aspxYoung, J. (2011, March 10). Movie theaters fight to keep 1,460-calorie popcorn from rule. Businessweek. Retrieved http://www.businessweek.com/news/2011-03-10/movie- theaters-fight-to-keep-1-460-calorie-popcorn-from-rule.htmlZeitchik, S. (2011, March 21). Would a different ticket-pricing structure bring more people to movie theaters. The Los Angeles Times. Retrieved http://latimesblogs.latimes.com/movies/2011/03/box-office-slump-winner-limitless- lincoln-lawyer-bradley-cooper-ticket-prices-lower.html

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...N O R T H E R N T E R R I T O R Y D E PA R T M E N T O F H E A LT H Health Promotion Strategic Framework 2011 - 2015 www.healthynt.nt.gov.au NT Department of Health Health Promotion Strategic Framework 2011 - 2015 Background This framework provides a structure for describing the type of health promotion actions that are used across the Northern Territory. It enables a shared understanding of the actions that can be taken to improve health and wellbeing. It also provides guidance about embedding a health promotion approach into all planning processes, programs and service development across the NT. While this framework is intended to be used within the health sector, we strongly encourage other sectors and agencies outside of the health domain to use the framework. This framework should be used in conjunction with health promotion audit tools and other health promotion resources available in the NT, such as the Public Health Bush Books and the Quality Improvement Program Planning System (QIPPS). It is also designed to be used as a guide, together with other local, regional and national frameworks, policies, strategies and resources. Why Health Promotion? The World Health Organisation (WHO) acknowledges the growing evidence that health promotion and preventive health approaches are effective in improving overall health and wellbeing, reducing the burden of chronic disease and injury, addressing health inequities, facilitating the better use of resources and enhancing...

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