Company: Movie Theater Describe the broad, overall market. Describe any other fa

Question

Company: Movie Theater

Describe the broad, overall market. Describe any other factors that you may need
to consider in order to evaluate your market options and other external factors. Describe
each of the macro-environmental factors facing the company and its market. Describe at
least two trends or issues in each of the macro-environments: economy, natural resources,
politics, technology, culture, and demographics. Describe how this may relate to your
company or industry.   
            Economic Environment
Describe at least two trends or issues in the economic environment.  
            Natural Environment  
Describe at least two trends or issues in the natural environment.  
Political Environment
Describe at least two trends or issues in the political environment.
Technological environment
Describe at least two trends or issues in the technological environment.
Cultural environment
Describe at least two trends or issues in the cultural environment.
Demographic environment
Describe at least two trends or issues in the demographic environment

Explanation / Answer

Movie theaters have become less and less relevant now that their target market can watch the same movies on 50-inch HD TVs, computers, and iPods.

Many theaters and cineplexes are still toast. But some in the industry are responding in the way they should--by trying to make going to a theater an experience that can't be replicated on a small screen.

Recent modifications include:

In order to evaluate the market we need to consider :

1. Households income levels

2. Consumer preference towardsmovie thatres over other modes

3. Entertainment and creation expenditure of the households

4. Regulations followed by the censor boards

Trends in economic environment :

1. Cost of setting up movie theatres is high. In case of less liquidity in the economy it is difficult to set up cineplexes or multiplexes.

2. Increasing real estate prices- Increasing real estate prices have forced movie theatre owners to increase the number of screens in the same theatres

Natural Environment Trends

1. People have become more consicous about the impact of movies on their children.

2. Increased use of computers : Households have become more connected with internet and have brought affordable computers, through which they can see movies easily

3. Online streaming of movies have increased

Political Environment:

1. The censor boards have become more particular about the content being showcased through movie theatres

2. The Political parties are effected by what is shown in movies through theatres and their advertisement campaigns

Technological Trends ;

1.  Investment in laser technologies: Movie theatres are under a constant pressure to invest in better technologies. The companies have increased their investment in laser projection technoogies to show 2D and 3D movies in better and brighter colors.

2. Increased number of CDs, DVDs, online channels have changed buying behaviours.

Cultural Environment Trend

1. Release of foreign movies : Movies from different cultures are now released across screens and owners need to be well connected with international distributors

2. Owners have to be careful about the culutral interests in the target market, and need to choose their content wisely

Demographic Trends:

1. People from all age groups have become more fond of moives. Smaller families and increased incomes give peple more time for recreation

2. Increased diversity across the globe due to higher migration levels have led to releasing content which is more globally acceptable

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