In the Assignment Section you find a file with the positioning map of a movie in
ID: 413916 • Letter: I
Question
In the Assignment Section you find a file with the positioning map of a movie industry market. A detailed description is included. Analyze the situation on the positioning map and evaluate whether there is a space for a new player to enter to the market.
The schema shows the situation on the cinema market in a middle-size European city (around 500 000 inhabitants). The two-dimensional positioning map applies two criteria - tickets prices (low vs. high) and product type (wide-audience movies vs. specialized-audience movies). There are eight players on the market with distinctive characteristics and different positions in view of the two given criteria. Analyze the situation in each of the four quadrants of the positioning map. Then evaluate the schema as a whole. In your opinion, is there a potential on a given market for the entrance of a new player? If yes, which quadrant would you suggest to consider? If no, explain why do you think so. In any case, argue your conclusions. Wide-audience movies Multiplex A Multiplex B Cinema C Cinema D Cinema E Low price High price Cinema Club Art Cinema Cinema Club Cinema Travel Specialized-audience moviesExplanation / Answer
Quadrants are divided based on Type of movies vs Price.
Quadrant 1 - Wide-audience movies at high price which means the cinema theatres are sophisticated and pricey with a number of facilities focused at urban audience who have disposable income to spend.
Quadrant 2 - Wide-audience movies at low price where the cinema theatres play commercial movies at lower ticket prices as the facilities are average. These are aimed at mass audience who cannot afford high ticket rates.
Quadrant 3 - Specialized audience movies(art movies) played in cinema theatres at lower prices.
Quadrant 4 - Specialized audience movies played in theatres at high ticket prices.
As Qudrant 4 doesn't have any player, it is an unexplored category. By concentrating solely on specialized audience who can afford high ticket prices, multiplexes can enter the market. The facilities should be best in-class to ensure the audience not only enjoy the movies but also the exprience. The multiplex should also have stores for shopping to attract more audience.