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What do ou understand by Business Environment
Business environment
Business environment
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Business Environment
INTRODUCTION
Cineplex Inc. is a Canadian Film Exhibitor company that operates only in Canada for the time being. It operates in the Entertainment industry, and pretty much has a monopoly over the movie theatre and film exhibition sector in most parts of Canada. However, the current data in Canada suggests that Video-On-Demand (VOD) popularity is experiencing a rather rapid increase, followed by an increase in sector’s development and revenue all around. Nowadays, all of the major Canadian broadcasting companies -- such as Rogers -- offer some sort of VOD service to their customers.2 Therefore, the net attendance of movie theatres, Cineplex Inc. in particular, inevitably go through a yearly drop. On the other hand, the industry is constantly growing and attempting to overcome its obstacles by introducing new features and services. Therefore, the profitability of the industry is constantly sustained.
INCOME AND RIVALRY
Despite the interference that VOD has created, Cineplex’s products and services are on another level compared to the broadcasting companies. Furthermore, the main income of the company comes from the services and the concession stands. Even though watching high quality movies and series is made possible because of VOD, the
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Plus, the company increases the dividends annually. So, investing in Cineplex Inc. sounds like a good investment using the “Buy and Hold” strategy. By analyzing the trend-lines and the charts, it could be expected for the stock to break through the resistance line fairly soon towards the middle of this quarter as well. Furthermore, considering the fact that this stock has a relatively low P/E ratio of 28.71, pays dividends, is a strong and recognizable brand, and has strong balance sheets and cash flows, it would be a really good choice for a value
Founded in 1966 and based in Calgary, Shaw Communications is a Canadian telecommunications company that provides telephone, Internet and television services as well as mass media related services. The Company operated through three principal business segments such as Cable, consisted of cable television, Internet, Digital Phone and Shaw Business operations. Satellite, consisted of direct-to-home (DTH) and Satellite Services. Lastly media consisted of television broadcasting. Shaw Media operates as conventional television networks in Canada, Global Television, and numerous specialty networks. It provides customers with entertainment, information and communications services, utilizing a variety of distribution
Gamble, J., & Thompson A. A. (2013). Redbox's Strategy in the Movie Rental Industry. In Essentials of strategic management: The quest for competitive advantage (pp. 295-303). New York, NY: McGraw-Hill/Irwin.
As can be seen in exhibit to solution 2, we have estimated the per-film value of each production company. MCA Universal, Warner Brothers and Walt Disney Co are the only production companies that provide a positive per film value, with values of 9.89, 1.92, 12.56 million respectively. This value is calculated by dividing the net present value of all the movies by the total number of movies. We also calculated the average value of each production company based upon their share of the total number of movies produced. The companies with positive values were MCA Universal, Warner Brothers and Walt Disney Co is also the only production companies that provide a positive per film value, with values of 1.40, 0.37, 1.40 million respectively. These values are based on the average value per film multiplied by the company's average share of the industry.
The market penetration of TiVo has been very poor. Fourteen months after its introduction only 0.04% penetration has been achieved out of the total of 102million TV watching population. This is also reflected in the poor revenue position of the company. Exhibit 3 shows that the company recorded a loss every quarter since the introduction of the product in September 1999 and has been getting worse.
The entertainment industry holds the immense potential for growth and development. The industry is constantly evolving and Walt Disney emerge as a global leader and recognized as the world’s second largest media conglomerate in the terms of revenue after Comcast. The Walt Disney Company is a multinational entertainment conglomerate headquartered at California, United States. The company integrated its products into five target segments are as follows: (1) Media Networks (2) Parks and Resorts (3) Walt Disney Studios (4) Disney Consumer Products (5) Disney Interactive. The company has strong diversified product portfolios and generate high returns and revenues from all the target segments but the media networks contributes
In this case study we will gain a better understanding of TiVo, Inc. and how it has struggled to find success in a market they are known to be the innovator. At this point there are very few television viewers in North American that do not know what TiVo does for TV viewing. However, most consumers do not know the history or struggles this company has been through since creating the product in the late 1990’s. After reading this case study it is clear the creators of the TiVo were visionaries but it is also clear they were not business people too. Sadly, this might be the eventual demise of the company that clearly had the market in the palm of their hand. We will examine some of their flaws and how TiVo might regain some of the momentum to become a profitable organization.
(1) Michel G. Rukstad, David Collis; The Walt Disney Company: The Entertainment King; Harvard Business School; 9-701-035; Rev. January 5, 2009
As advance technology of fiber-optic developed and is on the rise, everyday there is another story about entertaining movies on demand and streaming online is with ease. Those developments which let movie’s viewers sit in the comfort of their home or anywhere with access to the internet can stream instance movies with a push of a bottom. They no longer need to make a trip to the movie’s stores for movies rental and return, so that is why movie shops fail and filed for bankruptcy bring a symbolic close to the “let’s go rent a movie” era. Blockbuster LLC, formerly Blockbuster Entertainment Inc., both owned and franchised American-based giant provider of home movie and video game rental services through video rental stores, later adding movies by mail, streaming online and video on demand. Due to the peak of fiber-optic and competition from companies such as Netflix, Redbox, and GameFly, Blockbuster became the victim of digital media and filed for bankruptcy on September 23, 2010 due to significant lost in revenue.[3]
In today’s technology boom, the new waves of doing business have transformed the way people shop and live. The same happened the way people access personal entertainment. With Internet, people can stream movie online without have to go theater, or the rental movie box.
be affected by the increased use of new technology such as televisions. now being attached to DVD?s and VCR?S, downloading, buying illegal. products. The.. Processes? the need to cut costs, speed up production and compete.
From its inception, Netflix has become a business based on superior customer service and has subscribed its business to the market marketing management philosophy. The main purpose behind Hasting’s idea of a better way to rent and enjoy movies was how to provide that service to their clients and not have any late fees. In other words, their customers could enjoy their rentals from Netflix for as long as they wanted, and they would never have to worry about late fees again, so long big movie rental chains! This aspect alone of Netflix’s marketing plan indicates that Netflix has based their marketing plan on market orientation, “a philosophy that assumes that a sale does not depend on an aggressive sales force but rather on a customer’s decision to purchase a product,” (Lamb, 2009, p.7). Many companies that take on this philosophy are said to implementing the market concept. The marketing concept states: “The idea that social and economic justification for an organization’s existence is the satisfaction of customer wants and needs while meeting orga...
Reed Hastings, co-founder of Netflix headquartered in Los Gatos, CA, began the company’s operations in 1997 after receiving an enormous late charge from a movie rental he returned long overdue. However, Hastings had the desire to be different than traditional movie outlets; whereas, customers had to drive to the location, pay a certain amount for each movie they rented, and were given a deadline in which to return the movie. Instead of using a method established by other video markets “to attract customers to a retail location, Netflix offered home delivery of DVDs through the mail” which eventually led to a booming business towards streaming forms of entertainment (Shih, Kaufman, & Spinola, 2009, p. 3). Today, Netflix exists along with several competitors; however, offers the most streaming content available for viewing, and continues to grow its subscriber base both domestically and globally. Although, direct and indirect competitors, acquisition costs, and several barriers present a financial threat for Netflix, the company has managed to grow with the acclamation of partnerships, expand to international territories, and vastly increase its price in shares of stock.
The company is also having the plan in creating systems as well as retaining of employees to assuring they will continue to provide excellent performance to all consumers. This appropriate move will also ensure that all employees are contented and stay with the company and avoid moving to different competitors of the company, for example, entertainment platforms due to the pressure from ever-changing demographics. The company has also had in placed provisions in creating of workforce planning systems in which it will offer a series of planning in regards to the best talents in the company. Thirdly, the plan that the company has in the making of strategic decisions to address these trends towards the global viewers in thinking of more digitally (Taylor, 2016). This will also implement a placement concerning digital projection, which accommodates in increasingly 3 Dimension films while adapting to a theater in handling the new trend of movies.
Movie theaters are focusing on moving from film projection systems to digital and 3D systems. With these added technological changes, ticket prices typically rise creating revenue gains for the industry. These changes are drawing more consumers into the theaters because the in-theater experience is something that they cannot get from online streaming at
A movie theater has its advantages and disadvantages. One advantage is that people can see the showing of different movies that have been newly released. The disadvantage is that, that is all there is to it and nothing more. At home, you can control the variety and ways to watch a movie. People buy many movies to watch at home and it can be anything at any time even at any place. The only bad thing about it is that they cannot see any of the newest released movies that recently came out in theaters. There are two types of ways people watch movies at their homes. One way is people already own DVDs or have bought many of them and start watching them in their DVD players. The other ways are streaming a movie through the internet. For this to happen, people would mainly buy the monthly subscriptions such as Netflix, Hulu, or Amazon Prime. Through this subscription people do not only watch movies in their homes but they also watch television shows. The only downside is there is a very limited number of movies added onto these