October 21, 2020

OGL 355 – Leading Organizational Innovation

and Change
Dr. Brent Scholar

AMC Entertainment Inc.

Agenda
• Introduction to AMC Entertainment
• Organizational Structure
• Leadership
• Environmental Analysis
• SWOT Analysis
• Competitive Advantage
• Going Global
• Recommendations
• Conclusion
• References
Introduction

• AMC is the largest movie exhibition company in the U.S., Europe and
the world. AMC operates among the most productive theatres in the
United States, having the #1 or #2 market share positions in 22 of the
25 largest metropolitan areas of the U.S.
• Mission: “Making smiles possible”*
• Vision: “Providing the highest quality and the best movie-going
experience to its broad customers.”*

("AMC Theatres Fact Sheet", 2018)

 Organization Chart

SVP, Accounting
Director, Marketing

VP, Digital Marketing

HR Manager
EVP, Ops

VP, Brand Creative

CFO

Director, Benefits

CMO
Director, Recruiting
CEO

CHRO
 Leadership Team
Amanda Dennis
Chris Cox
VP, Digital Marketing
SVP, Accounting
Kevin Connor
Finance SVP, General Counsel Operations
Finance is responsible for
David Codding Operations manages the
management of AMC's cashflow
VP, Brand Creative inner workings of AMC to
and ensuring there are enough funds
ensure efficiency.
available to meet the day-to-day
operations.
Sean Goodman
Chief Financial Officer Stephen Colanero
Chief Marketing Officer

Adam Aron Carla Chavarri

Elizabeth Frank
CEO Chief Human Resources Officer
Chief Content Officer

Content & Marketing Human Resources

Content & marketing devise HR is responsible for hiring

Natalie Martinez
strategies based on AMC’s and training employees as
business objectives and customer Director, Recruiting well as employee relations
needs and promotes the business and managing their benefits
John McDonald
and mission of AMC. Pam Sandler Katrina Wilcott and compensation.
EVP, Operations
VP, Social Media & Content Director, Benefits

("Governance - Executive Officers & Board of Directors | AMC Theatres", 2020)

 Environmental Analysis
According to Porter’s Five Forces, used to analyze the industry in which AMC operates, the data shows that the market
conditions are not particularly favorable for certain growth or stability strategies, however, we believe a hybrid growth-stability
strategy has a higher chance of success than a renewable strategy.

Low
Low
High
High

High
High
Threat of New Entrants
With the COVID-19 pandemic causing
“shelter in place” mandates, the threat of
new entrants for the foreseeable future Bargaining Power of Buyers
is low.
Bargaining power of buyers is
extremely high in the current market
due to the COVID-19 pandemic and
the recent influx of streaming
services releasing content early.
High
High
Bargaining Power of Suppliers
Threats of substitution are also very
Due to a limited number of suppliers,
AMC’s dependency on them, and the
financial status of AMC, the supplier
bargaining power is high.
High
High
Threat of Industry Rivalry
Contrary to the previous several
years, the current threat of industry
Threat of Substitutes
rivalry is high as consumers seek a
higher quality experience and they
are willing to pay for it.
high as streaming services allow
viewers to abide by “shelter in
place” mandates, while still being
able to watch new movies.
 SWOT Analysis

STRENGTHS WEAKNESSES OPPORTUNITIES THREATS

• High Market Share • No R&D Division • Emerging Customer Data • Direct-to-Consumer

Technologies Streaming
• Brand Awareness • No AMC focused
advertising • Health-Conscious • Rival Theaters
• Early Adopter of
Consumers
Technology • Poor management • Dependent on
training program • Change in Content Unrestricted Free
• Partnerships &
Viewing Habits Movement of Society
Relationships • Centralized decision-
making process • Demand for Sustainable • Changing Trends in
Products Consumerism
• COVID-19
 Competitive Advantage

AMC Theaters 8043

Regal Entertainment 7178

Cinemark 4630

Cineplex 1695
Leading cinema
circuits in the United
Marcus Theaters 1106 States and in Canada
515
as of February 2020,
by number of screens
Harkin Theaters

B&B Theaters 418

410
CMX
363
Malco Theaters
362
National Amusements
Number of Theaters 1000 2000 3000 4000 5000 6000 7000 8000
 AMC’s Numbers
The charts below summarizes AMC’s revenue split by each of their three main revenue products from Q4 in 2019 throughout year-to-date 2020. To date, Q2 2020 has
generated the least overall revenue, with all three products combined, in the last 100 years (Duprey, 2020).

$1.44B $941M $18.9M $119.5M

2019 Q 4 Revenue 2020 Q 1 Revenue 2020 Q 2 Revenue 2020 Q 3 Revenue

Admissions $877M Admissions $568M Admissions $900K Admissions $62.9M

Concessions $438M Concessions $288M Concessions $400K Concessions $29.1M

Other $132M Other $85M Other $17.6M Other $27.5M

("Financial Performance - Quarterly Results | AMC Theatres",

 Frequent Moviegoer Market Segmentation
Based on 2019 data

01 02 03 04 05

Ages

• 12-17: 5.3 • Cauc.: 22 • $100K>: 21% • U.S. – $11.4B • None: 1%

• $50-99K: 16% • China - $9B
• 18-24: 5.4 • Hisp./Lat: 10.4 • Japan - $2.4B • 1 - 2: 11%
• <$50K: 12%
• 25-39: 10.7 • S. Korea -$1.6B
• Afr. Amer.:3.8 • UK - $1.6B • 3: 15%
• 40-49: 6.3 • France – $1.6B
• Asian: 2.9 • 4 - 6: 73%
• 50-59: 4.2 • India - $1.6B
• 60+: 5.5 • Other: 1.2

By Age By Ethnicity By Income By Country By Tech Savvy

(number of devices owned)
(in millions) (in millions) (% of moviegoers with one or (revenue)
more visits per month)

(Motion Picture Association, 2020)

 Target Market

From mid-20s to mid-40s, evenly male and

Selective and cost-conscious, open to try
female, middle to upper-middle class income
new brands but satisfaction leads to loyalty
level, Caucasian and Hispanic couples and
and frequent usage.
families.

Geographic Psychographic

Demographic Behavioral

Day-to-day routines mostly driven by

Urban regions in the U.S. with a population of 2
sense of belonging. Open minded and
million or more.
crave new technology.
 Emerging market is a term that investors use to describe a developing
country where an investment would be expected to achieve higher returns
but be accompanied by greater risk.

Features of Emerging Markets

Going Global Economies making a transition
Rapid industrialization
Have potential to become developed country

Faster long-term economic growth than most

developed economies
Many inhabitants still in poverty
Business struggles to access global markets
 Emerging Market Growth
(based on annual GPD growth from 2016-2019)

Russia
33%

Poland
12.5%

China
27%
Mexico
India
11%
25%

Brazil Indon.
2.4% 20%

S. Africa
18%
 Kashmir

1.8%
Hindu

Hindu population in India

administered Kashmir

Muslim
97.1%
Muslim population in
India administered
Kashmir
 India Market Expansion

66%
Locations
Measured
Favorable
Conditions

35 50 15 40 15 45

85 85

65
60
55
A B C 50
Economic Political Cultural
Considerations Considerations Considerations
• Business Freedom • BJP Gov’t • Power Distance
Reform • China • Collectivism
• Growing • Pakistan • Conservatism
• US Relations Economy Politics Culture Inclusion Mode of Attitudes
Infrastructure • Gender Roles Entry
• Regional Volatility
• Capitalist Economy
Recommendations
• We need some ideas for recommendations for AMC to grow/survive.
Feel free to add anything you think would be good here and we can
either come up with a list or use one idea from everyone. It’s your
call. I have one recommendation on the next couple slides just to help
get some ideas going.
AMC Focused Advertising Creating an AMC focused ad
campaign will drive more
viewers to the theater, which
prompts more businesses to
invest in AMC on-screen
Increased Buyer
advertising for deeper market
Reinvest in More penetration, allowing AMC to
Awareness Marketing w/ AMC
scale ad pricing resulting in
higher ad revenue that can
offset the AMC ad campaign
costs.

Budget
Higher Marketing
Penetration
Higher Market
Push to Outlets

Ad Revenue
AMC Client
Increase In
Marketing Marketing

Generate Ad
Increase Client
Campaigns
Base
 Rating
Customer
Top Theaters by Alamo Drafthouse
76%

Harkins
68%

Marcus
Marcus
64%
Voice of the Customer

Landmark
60%

("Alamo Drafthouse Is Consumers’ Favorite Movie Theater, According to New Market Force Information Study", Cinemark
59%

Studio Movie Grill

59%

Regal Entertainment
Regal
56%

Your Neighborhood Theater

Your Neighborhood Theater
54%

AMC Theaters
53%

Regency
Regency Theaters
52%

Cineplex
Cineplex
44%
Voice of the Customer
Conclusion

("AMC Theatres Fact Sheet", 2018)

Thank you