Phase 1: Strategy Formulation Draft Instructions Prepare a draft document for review by your professor that includes the fo

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Cinemark Holdings

Student’s Name:

Date:

Table of Contents

Introduction……………………………………………………………………………………3

Internal Strengths………………………………………………………………………………4

Internal weakness………………………………………………………………………………4

External Opportunities………………………………………………………………..……….5

External Threats……………………………………………………………………………….5

Conclusion……………………………………………………………………………………..6

References……………………………………………………………………………………..7 

Introduction

Cinemark Holdings is a company that became well known under the wing of Lee Roy Mitchell. The company mainly majors in the movie theater. People can go with their families and loved ones to view different movies from well-known movie production agencies such as Hollywood production, which is one of the leading in entertainment, particularly in movie production. Cinemark currently operates using different brands such as Century Theatre, well-known in many states in America, and Rave motion pictures, presently known as Rave cinemas in Dallas, Texas. As of January 2022, the company's net worth had risen to 1.91 billion united states dollars.

The company made strides in the movie culture in June 2014, whereby it opened a 4D theater that augmented the already trending 3D experience. This meant that the movie speakers could watch movies in an environment that seemed more futuristic based on the idea that the theater had artificial wind, scents, and even fog that brought a more intense and entertaining experience to the movie watcher. This was in line with its mission which is to make each movie experience more memorable, "one guest at a time' and its vision to provide what is termed as exceptional entertainment to their client.

In its objective to stay futuristic, the company has come up with several exciting theater ideas. They involve streaming video game competitions, including the riots game league of championships held in South Korea, yet were streamed in its theaters in Washington, Texas (Birkinbine, 2019). As a strategy, the company sought to employ some of the most successful people in the entertainment industry, with its most recent employment of Mark Zoradi. He served as president of the Walt Disney Motion Pictures group. Such strategizing has helped ensure that Cinemark holdings have maintained an ever-growing market share.

Internal Strengths

Good leadership is the only way companies that have served for a long while as Cinemark can stay in business; this is because the company has recognized the importance of a leader with direction. This aspect started with its first leaders, with Lee Roy Mitchell being a well-known strategist (Dzaramba et al., 2014). Such an individual could be termed a strength since he made strategically keen decisions such as which areas to build theaters and what movies to offer. Therefore, the company was able to thrive under him.

It is also worth noting that as an internal strength, the company had a stable financial ground that allowed it to purchase theaters owned by other companies. Through income made, Cinemark could buy 32 Rave cinemas theaters at 240 million dollars in 2012. This purchase boosted the company's sales while at the same time increasing its competitive advantage and market share. Therefore, it is adequate to conclude that its financial foundation was and still is one of its greatest internal strengths.

Internal Weakness

While Cinemark has been able to stay afloat in the market, it has faced some significant issues due to weaknesses. The first is that the company has been the subject of lawsuits, dramatically bringing bad publicity. One such event would be a case against the company whereby individuals claimed that the company's theaters were not pro disability. This was based on the idea that Cinemark's architectures did not at the point come up with designs that were considerate of those with a disability, especially in the notion of access. Additionally, it is arguable that the company lacks behind in marketing itself as an entertainment platform. While still active today, the company has not employed enough modern or otherwise competitive and forward-thinking aspects of promoting its brand.

External Opportunities

As of the end of 2021, many countries reopen their entertainment business, which could be seen as a possibility of profit for increasing the number of theaters through buying from other companies who the COVID19 pandemic has overweighed. This is because, given the lockdown and complete shutdown of businesses during the pandemic, there is a high influx of people who are ready to use their newly found freedom to access theaters and such sites for the sake of getting the movie experience out of their homes as was previously the case due to the ensuing COVID infections (Zahra, 2021). It is also worth considering that as an opportunity, the company could merge with some of the most extensive food and beverage companies, such as MacDonald's chicken. This would enable it to develop a more exciting setting where people can get to watch trendy movies and still enjoy food from popular take-out companies under one roof(Mazur et al., 2021). People will generally feel inclined to go where more is offered in terms of quality.

External Threats

Platforms such as Netflix have significantly disadvantaged Cinemark based on the idea that the platforms have been able to personalize movies so that people access what they want when they want, irrespective of what other people prefer (Burroughs, 2019). This has solved the problem of watching movies in theaters because theaters typically put up movies that many people prefer watching. Not only that, theaters will always keep time in the film being offered to people in the notion that the most recent movies will be aired since each movie is only showcased for a while, after which others are introduced. This creates a threat of irrelevance of theaters.

Conclusion.

Cinemark has enjoyed a broad and successful outreach into different markets owing to the idea that it can exercise strategic decision making, having had exemplary leadership and a uniquely efficient financial pool from which to source funds for expansion. It is, however, clear that the company would stand to gain if it were to use a better strategy because other companies such as Netflix pose destabilizers in terms of the company's competitiveness within the same market.

References

Birkinbine, B. (2019). Movie theaters and money: integration and consolidation in film exhibition. In Political Economy of Media Industries (pp. 22-40). Routledge.