Swot for Major

Topics: Movie theater, Film, Time Pages: 5 (1348 words) Published: February 9, 2012
SWOT Analysis
* Number of branches
Major Cineplex has highest number of branches among their competitors so they can reach more customers. There are up to 43branches for Major Cineplex, 6 for EGV, 3 for IMAX, 2 for Esplanade Cineplex, 1 for Paradise Cineplex, and 1 for Paragon Cineplex. The more number of branches, screens, and seats, the more they can provide service to customers. * Location

Major Cineplex Group located its product and service in the most convenient area. The location of each branch is reachable. It covers all regions, mainly in city and also other provinces. Therefore, it can attract a large number of customers throughout Thailand and gain a lot profit. * Oligopoly business

Major Cineplex Group gain 80% of the market share. Since they are in the Oligopoly, there are only few competitors in the market, they lead the market. Moreover, it is the leader of the market so they have high bargaining power over both supplies and buyers. For supplier, they have high bargaining power over domestic and international film producers and also sponsors. For buyer, they can bargain by increasing the ticket price. * Variety sources of revenue

Major Cineplex has many service and operation; they get revenue from many groups of customers. Not only film distribution and admission fee, Major Cineplex gains a lot of profit from advertising, concession, bowling and karaoke, and rental income which also can increase value-added. * The Economy of Scale

The Economy of Scale increase their competitive advantages by having lower cost of production compare to their competitors. They have large number of customer data from M-Gen card, the membership card. So they can analyze the customer behavior to create suitable promotion program to attract each customer group. This membership program generates more sales and increase customer loyalty.

* Nature of business
Major is a Stand Alone Complex that provides only movie services. It will lose their competitive with the one stop entertainment. Moreover, Major Cineplex has to provide service in a specific of time or in schedule. Even though, they can sell a few tickets, they still have to provide the services. Besides, the sales of movie tickets depend highly on the attractiveness of the movies in those periods. If the movies are not popular or attractive, the revenue will reduce on that period. And in some areas, Major Cineplex doesn’t provide some movies for customers. * Too high ticket price and long commercial

First, Major has to face an increase in social resistance trend about taking advantage of customers. For example, some groups of customers feel dissatisfied about too long advertising before watching movies. Also, they cannot accept very high price of product offered in front of the theaters. These all make customers feel that Major never cares of them. Finally, there is a resistance in facebook from some group of customers. * High fixed cost

Major has a lot of fixed cost due to the heavily invest in the movie theater. The heavy investment implies that Major Cineplex needs to try very hard to compete with other firms to gain the profitability. In order to have a movie theater, the fixed cost and capital requirement is very high for example, theater, seats and so on. * Licenses cost

Major has to pay a lot of copyright cost in each year for movies. It will make Major has high operating cost which will result in lower profitability. * Sharing information to public
Major is a registered company at the stock exchange so they have to disclose the company information to the public. It will benefit to the competitors to use this information to adjust the suitable strategies.

Opportunities are presented by the environment within which our organization operates. These arise when an...

References: http://m.thairath.co.th/content/eco/215181
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