Cliftex Theater

Topics: Implementation, Theatre, Profit Pages: 2 (576 words) Published: May 8, 2013
Nelson Spencer

Case: Cliftex Theatre

Problem Statement:
Phyllis Gamble and her business partner Mechelle Slaughter must decide if they should update the projection system in their historic theatre to digital. Digital offered certain advantages that their current system did not have. Most theatres today have made or are making the switch. The biggest problem with the switch for the two ladies is the cost.

Symptoms of Problem:
The old system in the theatre is not as good as a digital system. The picture and sound of a digital system will come in much clearer for the audience. Since everyone has begun to make the change to digital it is only a matter of time before their current system become out dated and they will not have film to show.

Key Issues and Constraints:
The biggest issue for the owners is that they want the theatre to become a sustainable operation. The theatre does not operate with a profit. The goal of the owners was to purchase the old theatre renovate it, and then get it to operate as a profit so they can sell it to a local who can operate the theatre. With this system cost could be too great. It will cost the owners 75,000 just to install the system. Repairs are expected to be more with the system also. It will be hard to make the theatre become profitable by adding digital projection.

Key Assumptions:
The key assumption is that the patrons would benefit from a switch to digital. I believe this assumption is inaccurate. The people that use the theatre are locals. I do not see the quality of the picture increasing being a big deal for them. They are just happy to come to a theatre that has such a unique experience and is close to the. They would give up quality of the picture for quality of the experience.

Alternative Solutions:
(circle “best” solution)

The owners should not update their systems to digital. They should hold off as long as possible. The cost could potentially lower. The main...
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