CINEPLEX COMPANY INC. SWOT ANALYSIS

CINEPLEX COMPANY INC. SWOT ANALYSIS

            Cineplex, Inc. is currently among the largest entertainment companies based in Canada, operating various businesses which include but not limited to movie theatres, alternative programing, food services, digital solutions, media and home entertainment sales which are carried online via cineplexstore.com. The company has partnered with SCENE, which is the Canadas greatest loyalty program in entertainment sector.

Just like other companies, Cineplex has constantly analyzed its operations from different points of view. This has enabled the company establish hospitality programs that have enabled it work within the confines of its competitive industry. Cineplex SWOT analysis has taken an in-depth at the recent programs within the industry and mapped the key drivers that will lead to its success.

In all the projects the company has launched, the SWOT analysis identified the following underlining opportunities

Consolidation of various brands under one master brand strategy

This is one of the strategies adopted by many companies recorded in the history of globalization to have succeeded like Apple, Coca-Cola etc. Under this strategy; a company strives to capture customers from all walks of life by providing different services as well as brands instead of specializing in a single brand or service.

For instance, Cineplex has incorporated many other different services in addition to Movie cinema which it was initially founded to provide. At the moment it provides alternative programing, food services, digital solutions, media and home entertainment sales which are carried online via cineplexstore.com. It is therefore clear that it has widened its coverage. If a customer is not interested in movie cinema, that does not make him an exception as a Cineplex customer as he or she can land on alternative programming. As that is not enough, he or she can also be interested in digital solutions as well as home entertainment equipments. This increases the company revenue and profitability since customers will always be available.

Capitalizing on the boomer demographics, more pay for a better experience terms

Many businesses remain stagnant due to the fear of losing customers when they increase the cost of their services in order to provide quality services. They therefore opt for the cheaper services which are of low quality. This is a trend which no longer holds true in the current market. Although it is still rampant in the market, it does not determine the profitability of a company. Some companies have small number of customers but realize more revenues than others with more customers. All because of capitalizing on boomer demographics as in the case of Cineplex company.

Improvement of the overall movie theatre experience

In current market customers will always choose a service which meets their expected standards unlike the situation some years ago where they emphasized more on cheap services. Improving the overall theatre experience in Cineplex has acted as a golden opportunity to the company since it is likely to snatch customers from their competitors who might be offering poor movie experiences in terms of HD quality and Virtual reality. Snatching customers is a direct indication of increased revenue as well as profitability to the company and this will lead to expansion of both the company standards as well as its services.

Increased revenue per theatre visit

The trends in theatre visits in Cineplex have indicated a considerable increase in the population. In return, revenue is increasing in comparison to what has been the trend in the past few years. This has been facilitated by the improvement in services offered by the company as well as the additional businesses which have been incorporated to what used to be a movie cinema only. Increased revenue is an indication of high profits which the company will use to make more improvements in the facilities the company has at the moment and also incorporate more services which will attract more customers in future. Increased revenue has also led to improvement in employee services within the company and which will motivate them to work extra hard towards meeting the goals of Cineplex company.

Recommendation

Cineplex Company should invest in research based on what other companies (not necessarily under the same industry) are doing to maintain their competitive advantage. This will enable the company keep updated as far as its current opportunities are adopted by the rest in the company. For instance, other companies in the industry are slowly moving to HD movie cinema experience and other quality experiences. The company should also explore for some other opportunities before it is overtaken.

References

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Pickton, D. W., & Wright, S. (2014). What’s swot in strategic analysis?. Strategic change, 7(2),     101-109.

Helms, M. M., & Nixon, J. (2013). Exploring SWOT analysis–where are we now? A review of     academic research from the last decade. Journal of strategy and management, 3(3), 215-         251.

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