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Nature and Nurture of Evaluation of Sensory

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| A Horror Show at the Cinemaples Tonya ShearnDr. Talil H. AbrhiemBUS 499 Strategic Management Concepts and CasesNovember 27, 2011 | |

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A Horror Show at the Cinemaplex
Cinemaplex is a movie theater that has experienced changes due to technology advancements. The change has negatively affected the the attendance at the theater. Revenues have increased but only due to the inflated prices of tickets, concessions, and advertising revenues. Some of the technological advancements that have Cinemaplex concerned are; home theater systems, quick movie to DVD releases, video on demand, and internet streamlining.
Perform a comprehensive analysis of the five competitive forces, Discuss what level of competition can be anticipated amongst industry rivals. Threat of New Entrants The threat of new entrants is low. The cost of entering the box office industry is substantial. More theaters have seen a decrease of almost 15.5% from 2000 – 2007. Also, the number of movie goers has significantly decreased, as well as a decline in the number of hours annually spent at a movie theater – 12. Bargaining Power of Suppliers The bargaining power of suppliers is high. A movie theater must use the distributor to get movie releases from the studios. Substitute suppliers are not available. It is critical to the exhibitor receive the goods of the supplier. Without the movies there would be no movie patrons, no concession or advertising sales.
Bargaining Power of Buyers The bargaining power of buyers is mixed. Movie theaters do not have 50% off or buy one get one free sales. If fewer movie tickets are sold, consumers cannot drive prices down. But they do purchase the majority of the exhibitor’s product. They also could easily switch back and forth between venues in larger populated areas.
Threat of Substitute Products The

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