Competitive Rivalry Exhibited in the Movie Theater Industry (Research Paper Sample)

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Competitive Rivalry exhibited in the Movie Theater Industry
Numerous researches have been carried out to ascertain the competitive rivalry that has in the past and presently depicted in the movie theater industry. The ongoing technological advancement across the movie industry has immensely impelled various investors to intensively engage in grand investments in movie production. Thus, most of the movie stores in United States have been provoked to shoot up to answer this demanding call. Thus, this paper explores a comprehensive research carried out to establish the impact of competitive rivalry affecting the movie theater industry. In this research, four published informative articles will be used to justify the trends that competitive rivalry in the movie industry has caused to the overall growth of the movie theater industry.
The movie theater industry is flooded with many companies that mainly carry out film exhibition. For instance, most of the movie industries in United States perform drive-in movie theaters, cinemas and alfresco movie theaters. However, greater challenge is endorsed to the movie theater industry as the technology continues to grow day by day. Hudson is left in dilemma "whether the evolvement of online content streaming will lead to closure of outdoor movie theaters and cinemas as nowadays most people regard watching these movies at their conform in their homes than staying out in the open-air”.
In spite of having high viewers’ satisfaction and fascination, the movie theater industry has greater challenge in who should have market dominance hence resolving to competitive rivalry. As a result, other dependant market factors and risks become a big problem. Though, there are still a number of encouraging benefits due to this competitive rivalry hence giving this research an upper-hand in establishing the "extent of impact that the competitive rivalry has to movie theater industry" (Latham 2014).
It is very important that the movie theater industry establishes an excellent and robust platform that gives each competing rivalry movie studio an advantage to thrive in the market place despite its size and population. From the four supportive researches on this competitive rivalry in movie theater industry, there are several factors that "give a clear understanding on the essence of this competitive rivalry" as depited in IBISworld website report.
Declining life cycle stage: The projected total revenue in 2012 showed a 2.3% decline than the previous year hence concluding a deteriorating life cycle stage in movie theater industry. Therefore, "this negative effect should be dwelt with before the industry faces its final curtain" (Glover 2014).
High barrier of entry: The only positive factor that can help a movie studio to have greater lion share in the market place in high barrier of entry. The digital screen technology is only affordable by the operators who enjoy high economies of scale in the market hence forcing the new entrants to migrate to the outdated technology. Also it is very costly to establish multi-screen theater house thus forcing the operators to renovate or acquire older theater buildings.
Quality of the product: The internal competitions rely on the quality of the films and ticket prices. This is what mostly attracts the target audiences. There must be discount and combined offers in order to create more curiosity to the target audience on the movie theaters which also give additional challenge to the operators prior to the movie production unit.
Per capita disposable income: This is the most important factor impacting the industry. Its increase leads to people spending more on discretionary services hence ticket sales raise up. In the contrary, the later may be true leading to decrease in the sensitivity risk the coming year.
External competi...