ESCUELA SUPERIOR POLITÉCNICA DEL LITORAL

Strategy Corporate

Movie Theater Industry

Grupo # C

Integrantes

Dagmar Victoria Chamba Zambrano

Julissa Nhasly Chávez Salavarria

Renata Contreras

Tutor:

Econ. Maria Cecilia Moreno

Pao 2022-2s
Contenido
Introduction...........................................................................................................3

Analysis Five Porter’s Force.................................................................................4

Competitors.......................................................................................................4

Buyers................................................................................................................4

Suppliers............................................................................................................5

New Entrants.....................................................................................................5

Substitutes..........................................................................................................6

Analysis the competitors.......................................................................................6

Cinemark...........................................................................................................7

Multicines:.........................................................................................................7

IMAX:...............................................................................................................8

Supercines:.........................................................................................................8
 Introduction

In the last time, the movies theaters have been seen affected for the arrived of

the television paid or the streaming app like Netflix, Disney Plus, Amazon Premium, Tv

Cable, Direct Tv enter other. In Ecuador, in Covid’s pandemic, more that 50 movies

theaters closed the doors for the public, your profit decreased and had waiting for month

because able to open again. (Cavolpiña, 2020)

Actuality, the streaming platform have more welcome for your plans, give a

unlimited content in return of one paid for subscription. However, the movies theaters

have one advantage, and this is that the movies theaters are projected first for this and

after the public could watch in the comfort of your home.

The movies theaters in Ecuador have a decreased in you demand because in the

2021 they only had around of 1 385 000 persons while in the 2020 and 2019 they had

was about the doubt and the triple respectively. This decrease had been starting since 10

years ago because the offer of the streaming platform has been increasing. (El Mercurio,

2021)

The movie theaters are not abandoned because the same people that usually have

a higher consume in the streaming platform, adore watching movies in this rooms.

Either the youngest people until the oldest fanatic, this people assist first to the movie

theater because the feeling watch your favorite movie in large screen fills then with

happiness and euphoria. (Zorrilla, 2018)

Analysis Five Porter’s Force

Competitors

Currently, this faculty is not a problem for the established cinema chain

companies in the sector. With the economic crisis, fewer people go to the movies, the

number of cinemagoers has decreased. No modern entrepreneur invests in the sector

because of the difficulties already mentioned, the entry barriers are high compared to

other sectors, also the material is very expensive such as projectors, screens. The

competitor’s power is low, and this does not represent a threat because don’t exist major

competition that provide the same experience as movie theaters.

Buyers

This force of this segment is low. Therefore, they can not influence the price

and quality of the service because the price, the meals and drinks are things controlled

for this industry and depend on quality serve that theater movies have. The theater

movies, in general, have the similar form to provide the service. Then, the people who

are willing to pay for this theater movies service are because they consider the movie

experience worthwhile.
 Suppliers

The suppliers have a medium power because cinematographic and productors

movies companies need the theater movies for show the movies at public. The actors

received your gains thought presenting them first in a cinema before a streaming

platform. Namely the cinematographic, the suppliers, need the theater movies for

survive and obtain more profits.

In some movie theaters, films are used as raw materials and the suppliers are the

film production companies, such as: Summit Entertainment, Paramount Pictures, 20th

Century Fox, Walt Disney Pictures, RKO Pictures, Metro-Goldwyn-Mayer, Sony

Pictures Entertainment, Universal Studios, Pixar, Aurum, etc. mainly through the main

film industry, Hollywood.

The products provided by the supplier are critical to the success of the cinemas,

successful movies are often associated with distinction either by the participation of a

group of famous actors, an acclaimed director, some screenwriters, etc.

New Entrants

The different chains compete in different ways, although currently almost all

theaters have the ability to watch movies in 3D and 2D. The differentiation in theaters is

found in the price and promotions made on weekdays or discounts applied for use of

specific cards, as well as the memberships offered in some cases.

In recent years, there have been no companies or individuals who want to enter

the movie theater industry; in other words, there are no new organizations that want to

enter the market because is so expensive, so that the threat is low.

Many choose to rent movies through video stores or download them directly,

for free and illegally, over the Internet and the streaming platform. Today, portals

showing unlicensed films are becoming increasingly common.

As a result, and due to the wide reach of the Internet, movie consumers can

reduce the influence of movie theaters, so we can click and watch any movie we want

online, even new releases. Or we can download them to burn them ourselves to DVD

and watch them whenever we want.

Although, this industry has an advantage because the fanatic people prefer to

watch your favorite movies in a cinema because this industry is the first place in

streaming the movies films, the most famous movies like the MARVEL's movies, DC's

movies and other similar. So that, the threat is medium level.

Analysis the competitors

In the world there are differences film industries such as Universal studios,

Paramount, DreamWorks, Miramax, Walt Disney, Buena Vista, Touchtone compete to

take a little more from the industry and in some of them they have greater strength,

currently there are platforms that also they are invading the industry like Netflix, HBO,

Apple Tv among others.

All movie theaters have access to the films of each of these cinematographic

companies except for the streaming like Netflix and the others. The competitors, here in

Ecuador, are enough. Ecuador have 48 cinemas in all the country among them are

Supercines, IMAX, Multicines, Cinemark, Cinemas, and others. This movies theater

offers the same service, a good movie with a good service, but exist some that offer
more quality in the service like Cinemark. The ticket price, in average, is equality. They

don’t have different so higher in your price.

Cinemark

Strategy:

- Differentiation

Competitive advantage:

- Quality in the service movies

- Comfortable environment

This movies theater has VIP rooms, screen with the last innovation, the best

sound experience for the users.

Multicines:

Strategy:

- Differentiation

Competitive advantage:
- Quality in the service movies

- Comfortable environment

This movies theater has VIP rooms, screen with the last innovation.

IMAX:

Strategy:

- Differentiation

Competitive advantage:

- Quality in the service movies

- Comfortable environment

This movies theater has VIP rooms, screen with the last innovation.

Supercines:

Strategy:

- Cost Leadership

Competitive Advantage:
- Low price

- Average services