Competitive Rivalry in the Movie Theater Industry (Essay Sample)

Student's name Professor's name Subject details Date Competitive Rivalry in the Movie Theater Industry Introduction As new technological advancements continue to prevail across the movie industry, various investors feel the importance of engaging their investments in the movie industry. The current world population has had a great fascination with films and movies hence prompting a number of movie stores to sprout across America and other regions (Hudson, 3). Although many viewers are satisfied with the presence of several movie exhibition and theatres across the globe, many investors face the challenge of competitive rivalry hence not getting the lion's share of the market. Besides, increase in the creation of new movies in the market leads to new quality each time a new movie gets to the customers. In as much as competitive rivalry might negatively affect the movie industry, there are a number of benefits that have been attributed to competition in the movie and theatre industry. This paper primarily aims at carrying out a comprehensive research on some of the ways through which competitive rivalry has affected the movie industry (Mullins, 20). Methods used to gain competitive advantage Given the size of the market in the movie and theatre industry, it takes an excellent marketing strategy to develop a robust competitive advantage platform that will help the company in achieving the best out of its products. Movie studios should also strive to ensure that they use various techniques in making proficient and sure predictions on what the viewers might have in their taste and preference list. Thus, it is of great significance to initiate various tools of prediction such as Proctor to help in making market predictions and analysis before coming up with a new movie (Hudson, p.4). Competitive production schedules Hollywood being one of the most renown movie producers in the world has not put much stock in their store but uses various research analyses to determine which kind of movies to release to the market. In addition, Hollywood has always believed in the fact that the movie and theatre industry needs fresh movies and ideas every other time. As a result, Hollywood has achieved a significant level of competitive advantage against its competitors. From the perspective of new ideas, competitive rivalry has appeared to be among most positive ways of achieving quality. In order to counter the techniques used by Hollywood, other firms have come up with numerous movie studios from where the audience can get the latest releases before they are officially sent to the stores for sale. Besides, many movie theatres have used psychological marketing skills that involve pushing back the release dates in order to quell the audiences'anxiety as a new movie gets into the market. Competitive rivalry is, therefore, achieved through such methods so as to ensure that the attention of the audience id caught before another company releases a new film (Mullins, p.22). Additionally, to counter competitors in the movie industry, some studios ensure that they include a stronger player to enable the movie sell more than those of other competitors. Moreover, many researchers have found that seasonal featuring of movie stars is one of the best ways of keeping the attention of the audience to ensure that they do not wander to other movie theatres. Competitive rivalry in the movie industry has been one of the major drivers that lead to the production of high definition 3D movies theatres and improved video quality in the movie market (IBSIWorld, p.20). Factors controlling competitive rivalry According to Hudson (p.5), the primary positive factors that control competitive rivalry in the movie industry include the many barriers to entry of new firms. Currently, the actual cost of acquiring a digital technology screen is relatively high hence creating a financial barrier to entry of new firms. Hudson (p.6) asserts that the use of DVDs in the movie industry is one of the common methods through which movie theatres store their films. Evidently, the actual price of...