Implement Strategic Service Vision

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Date:January 26, 2013

To:Professor Aase

From:Abby Wilson

Subject:The Alamo Drafthouse Case Analysis

The Alamo Drafthouse is an excellent example of how a business implements their strategic service vision well. This business recognizes the needs and wants of the consumer, and is able to provide services and goods using low-cost methods, creating value for both the consumer and themselves. They use an overall low-cost leadership competitive service strategy.

Alamo Drafthouse Strategic Service Vision

Target Market Segments: For the 2nd run features programming the 25-40 year old consumer, who has a sophisticated taste in film is the target. The special events are geared toward 18-30 year old, male, who regularly consumes alcohol. The targeted location is downtown Austin.

Service Concept: They are a single-screen movie theater, and offer food, snacks, alcohol and other beverages. The seating is comfortable and convenient. The services and goods are offered at a low-price.

Operating Strategy: The consumer receives a high value for the low price. The service is convenient and enjoyable for the consumer as well as for the employee. The Alamo Drafthouse promotes through local newspaper, as well as free publicity.

Service Delivery System: They use a less formal method of serving customers, requiring minimal communication. There are more restricted seating capabilities, compared to most theaters.

Alamo Drafthouse Winning Customers

Qualifiers: Cleanliness of theater, food properly/safely prepared, film quality

Service Winner: price, scheduled programming, food and beverage options

Service Loser: Because the genres are so limited, the films are not appealing to all audiences. Bad service, film interruptions/quality issues

Where can improvements be made?

The owners, Tim and Carrie, could increase profitability by expanding their target market. They would have to provide the genres of film that would appeal...