Movie Picture

Exhibition

Movie Picture
Exhibition- PVR
Industry Analysis
Story line

• Industry Attractiveness
• Competitive Positioning
• Climax- Our analysis on the
overall industry
Industry Analysis-Five forces

Threat of substitutes
Barriers to Entry, Government
actions
Bargaining power of the Buyers
Bargaining power of suppliers
Rivalry
 Barriers to
Entry
(LOW)

Competitive Substitute
Rivalry Products
(MEDIUM)
Porter’s (LOW)

Five
Forces

Bargaining Bargaining
power of power of
Buyers Suppliers
(MEDIUM) (LOW)
 Industry Analysis
Threat of Bargaining Power Bargaining Power
Substitutes of Buyers of Suppliers
• OTT/ On Demand TVs • Online ticketing platforms • Increased globalization
• Sport events like World Cup, making it easier to for • No. of suppliers is very
FIFA Etc. buyers to compare high which leads to low
• Online Video watching • Low Customer Loyalty bargaining power with
platforms due to Low Internet • Low Switching Cost them
cost
• Piracy

Barriers to Entry Competitive Rivalry

• High Sunk Cost involved
• High Capital requirements
• Access to distributors is difficult
• Obtaining license
• Highly fragmented industry and
no single enterprise to influence
the entire sector
• High Fixed Costs
• Highly perishable products
Analysis of the Attractiveness of
the Industry
Threat of substitutes- Analyzing the availability of close substitutes like online streaming platforms, TV channels
which are still in the building scale offer the movie experience at a much cheaper cost than a theatre costs.
Additionally with factors like Piracy, lower costs of internet, the overall score of the threat of substitutes is at 3.
Bargaining power of Buyers- With the categories of buyers restricted to direct customers and online ticketing
platforms the switching costs are very less considering the limitations. Also in terms of backward integration
and forward integration is less making the industry highly attractive. The overall score is at 3.
Barriers to Entry- This is a highly capital intensive industry with the end product requiring a very common
technology and very limited product differentiation in terms of quality limiting very low attractiveness.
However in terms of the access to the distribution channels and Economies of scale with the Movie theatres
playing as monopolists, the attractiveness is very high.