Cineplex Odeon: Back to the Future - Essay Example

They were, therefore, taking advantage of the specialized market and fulfilling the needs of the audience. This type of market was latent and hence the business boomed as soon as people realized its existence. With their multiplex chain of small screens showing the different specialized movies, their theaters began to fill and people even were drawn away from the popular Hollywood movies being shown in the large theaters and began to flock in these small multiplex theatres. The success of this generic strategy was overwhelming as more people discovered them and they even expanded their market from the one shopping center in Toronto to other places across Canada and even moving borders into the United States popular Los Angeles location.

The success was also drawn from their technology of advanced projection which enabled them to screen several films at once thereby taking care of the people without causing congestion and this also reduced the advertisement costs as they could make use of one advertisement for all the films that they were planning to show as they would all stream at once. 2. What was Cineplex Odeon’s second (Blockbuster) generic strategy? Did it reduce the effects of the 5 Forces? The second generic strategy undertaken by Cineplex Odeon under Drabinsky’s leadership was a focus strategy which involved the redesigning and renovation of the theatres to provide a different atmosphere from seeing a movie from home using the videotape.

This led to the theatres being redecorated with different colors, changing of the theatre seats, having even real buttered popcorn and fresh cappuccino and even installation of attractive artwork between the entrance and the screen meant to change the feeling of the real world making the customers increase their anticipation. The snacks were a way of making the movie viewers stay longer after the movie enjoying the snacks and discussing the movie while being unconscious that they are spending more money.

This strategy even though cost the company more money proved to be successful and outdid the competition from other theatres. The effect of Porter’s five forces analysis was not reduced. On the contrary, Cineplex Odeon followed this analysis and this is what led to its ultimate success. An example of this is on the bargaining power of the customers were after the redecoration, they increased the price of the movie ticket but they reduced the amount for tickets of movies on Tuesdays. This, therefore, ensured that the fully was fully booked on Tuesdays as more people took advantage of this and the movie theater enjoyed this increased profits.

There was also threat to substitute products or services whereby they substituted the cardboard boxes of popcorn for popcorn bags which cut costs by about $1 million. Cineplex Odeon also drove their biggest competitor out of business using a strategy by Drabinsky of selling his shares of the entrance of the theater, therefore, denying entrance of the big players (Schwarzinger 19). 3. Compare the leadership styles of Drabinsky and Karp. Drabinsky was a risk taker and an authoritarian leader who made all the decisions regarding the company on his own without consultation (Kippenberger 2).