The major strength of the studios is that they are now being managed by large corporations and manage as profit center to increase their incomes and retained earnings. Weaknesses
The main weakness of the Studio production is the cost of bringing films into the market. The average cost of releasing a film is more than $100 million. This cost in producing and releasing the films into the market has dramatically gone up the last five years around 25%. Exhibition Cinemas
During the global financial crisis in 2008, when the gas prices was going up, stock market decline, and there were significant layoffs, there wasn’t any more one could for $10 or for families under $30. Park amusements cost was an average of $141, and pro-football $261. There was so much going on during that time that the theater was an escape of reality and a form of entertainment relaxation. When in crisis scenarios and people feel they want to come out of their houses one of their first options is going to be the cinemas. Weaknesses:
The number of theaters decreased more than 15 percent between 2000 and 2007. The competition between theaters often comes down to the total distance away from home, convenience of parking, and if the location is close to restaurants. Logistics is a weakness, because many of the customers will decide between one or the other base on just their logistics, since now a days most of the theaters show the same movies, and show them at a variety of times. Another weakness in competing in the theater industry is that no one really can be innovative because the competition will adopt your methods and even match ticket prices. The prices in concession stands are very high compare to the real cost of the in other stores. The prices in the concessions are not high and made up by the managers but rather by market researchers using profit maximization. Some of the weaknesses that people complain about is...
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