Cineplex is one of Canada’s leading entertainment companies. They serve metropolitan cities and midsize markets through their nine theater brand offerings. Susan Mandryk and her team are considering two options to combat the continued reduction in theatrical release windows that Cineplex is experiencing. The first is to extend Cineplex’s core business with premium offerings. The second is to vertically integrate into the digital movie download market. Cineplex has partnered with SCENE Entertainment Rewards Program to offer a customer loyalty card program. 75% of customers who enrolled in the SCENE program reported they were very satisfied. Mandryk wants to continue creating value for members while increasing the returns from the program as well.
Industry Analysis
See Appendix A and B for Five Forces Framework and PEST Analysis
When looking at the industry that Cineplex is in, it is important to consider the rivalries that exist as well as the factors that have the potential to affect demand in movie attendance. In Canada, …show more content…
They wanted to be able to create recognizable brands to differentiate the in-theater experience from other competitors as well as from the at-home experience. Some of Cineplex’s brands targeted urban and downtown areas, gaming and teens, adults, and suburban and small towns. Cineplex focused on the having gaming opportunities available in their theaters and also on providing consumers a wide range of concession with good quality. Cineplex “zoned” their concessions in order to make the concessions experience more enjoyable for the consumer and alleviate the possibilities of long lines and wait times. Before a movie began, consumers waited forty minutes for the pre-show and previews to play—20 minutes each. Eighty-five percent of Cineplex theaters were in free zones, and their size generally gave them access to more desired films from