Cineplex First Generic Strategy - Assignment Example

The basic purpose of the existence of Cineplex was not to compete with the large theaters but to develop a new market that to some extent does not exist. All the screens in the Cineplex presented a compelling picture of profit margins that show the success of the newly developed idea.

CINEPLEX ODEON’S SECOND (BLOCKBUSTER) STRATEGY:

After the comeback from the verge of bankruptcy, Drabinsky has possession of one of North America’s major theater chains. The market was diversifying at that time and TV channels were eating the market share by showing the movies with the comfort of home. Drabinsky was concerned with this situation and decided to change the perception of moviegoers by enhancing the movie-going experience in theaters. The enhancements were brought regarding the renovation of theaters. At first, the uniformly drab design of Cineplex was abandoned which was common in most theater chains, introduced the artwork in the lobbies, lush woolen carpet spread over the marble floors of theater, and also incurred some other changes in the physical structure of theater. The screening auditorium featured scientifically countered seats, digital background music, and state-of-the-art projection systems. One more new idea was introduced; it was real buttered popcorn in the concession stands and cafes that offered freshly brewed cappuccino. With the introduction of such changes in its theaters, Drabinsky changed the face of film exhibitions. This stand gave a sustained competitive advantage for a long time to the Cineplex.

LEADERSHIP STYLES OF DRABINSKY AND ALLEN KARP:

“Drabinsky”

Drabinsky continuously focused on innovations and new ideas implemented in the business structure. He was always looking to increase the power of the company by consistent increase in the market share, new market development or market expansion, etc. Continuously increasing market share was his main concern. Drabinsky had a little focus on the increasing cost and expenses of the company. The designing of high-tech featured theaters and hiring of several employees just for the convenience of customers had given a considerable impact on the cost of the company.

“Allen Karp”

Allen Karp was hired by Drabinsky as a senior executive vice president of the Cineplex. Karp faced a highly pressurized situation when the companies hate gong through form the phase of financial instability. The company’s high cost was the main concern the Karp, and he directly started to reduce the cost of production from the different parts of the business. So many screens were sold, many employees were fired, and some other downsizing decisions were taken by the Karp. Karp served as a cost-effective manager at the time of financial instability, and he had succeeded in his target.