abhishreshthaa
Abhijeet S
Pest Analysis On AMC Theatres (American Multi-Cinema) : AMC Theatres (American Multi-Cinema), officially known as AMC Entertainment, Inc., is the second largest movie theater chain in North America with 5,325 screens[1] and one of the United States's four national cinema chains (Regal Entertainment Group, National Amusements, Inc. and Cinemark Theaters being the others) of the 12 largest on the continent that did not go bankrupt during the 2001-2002 recession,[2] due in part to the fact that its theatres often dominate lists of the top 50 most profitable theatres in North America.[3] Its mascot is the animated filmstrip Clip who has starred in the pre-show policy trailers from 1991 until a brief hiatus for most of 2009 until the autumn of 2009. While it also has locations in Canada, within the United Kingdom, France, and Hong Kong the chain is known as AMC Cinemas.[4][5][6] Within Spain the chain is known as AMC Cines.
AMC Theatres’stargeting is quite limited. Unlike B2C, in B2B there is very rarely a mass market and Boeing is no exception to the rule. The companies targeting is aimed mainly at its existing clients and its profit margins are squeezed by these well knowledgeable clients mainly because they themselves are professionals and know the cost of production for airplanes. Boeing has therefore been forced to offer certain trade discounts and other measurable benefits to its clients with whom it has a strong relationship albeit their clients only have two main suppliers.
AMC Theatres’sexisting targeting strategy as aforementioned is aimed at its existing clients. These clients have been discussed in the segmentation section of this report. They are AMC Theatres’scorporate clients and they include commercial airline companies, governments and governmental agencies and other non governmental organisations (N.G.O’s) such as private companies. AMC Theatres’smost valuable target is the commercial airline companies it serves.
There are many types of commercial airplane buyers but the main two are essentially strictly organised short distance low capacity airlines such as RyanAir and all of the “others”. The reason for this uneven division is because although there are more of the “others” operating worldwide a lot of AMC Theatres’srecent revenue has come from the short distance low capacity airlines due to their profitability. AMC Theatres’stargeting is now familiarised with a couple of repeat customers that continue to boost AMC Theatres’srevenue. Boeing targets its low capacity short distance clients through major financial and aviation trade publications with its 737 family mainly and uses clever advertising like its recent 737 advertisement which read “The most comfortable planes in the world are those that leave the gate on time .” This type of advertising appeals immensely to low cost operators as the longer they have they’re plane stationed on the ground the more costly it is for them. Leaving the gate on time is part of the low cost strategy. Other targeting has come through informative advertising using facts about how the more Boeing planes your company has the higher it ranks in profitability and customer satisfaction. The advertisement read; “The most profitable airlines in the world really know their numbers ” and below the text were the numbers of many of AMC Theatres’slow capacity short distance designed planes such as its 737 family.
AMC Theatres’stargeting for its “others” segment is done through advertising also and is devised in a more general manner which can appeal to many different airline companies. Since the “others” segment is quite differential and includes many different clients that range from state owned airlines to niche operators or to package travel operators the advertising has to appeal to all and therefore cant be as specific as the company’s short distance low capacity advertising. One advertisement read “The
quietist, most reliable, most efficient and most comfortable airplanes in the world all take off from the same place ”.
In small print below the main picture of the Boeing planes taking off from a runway there is an interesting small text which reads “That’s why no matter what the criteria, you’ll always find Boeing aircraft at the head of their class”. The implied connotation being that no matter what your airlines buying criteria are and no matter which sector of airline travel you’re involved in Boeing planes will be the best in their class. This type of targeting is indeed broadly based.
We believe that AMC Theatres’stargeting will continue in an identical manner to its existing for the foreseeable future. AMC Theatres’scurrent targeting is aimed at a broad segment and its more profitable segment which is the low capacity short distance segment, the assumption we have is that the current demand will remain in the airline industry. The driving factors of today in airline travel are international trade and lower fares as well as airline network improvements such as increased frequencies and more direct service; we believe these driving factors will remain. The only future change that we can envisage is that the company may begin to target geographically as opposed to targeting its existing clients based on their individual buying criteria as according to some of AMC Theatres’seconomic models air travel is highly correlated to economic growth measured as GDP.
Most importantly AMC Theatres’scurrent targeting is measurable upon the company’s existing customer orders, substantial with a great deal of potential through increased point to point route demand, accessible through the companies procurement on EXOSTAR, stable since the airline industry is now built upon relationships and is becoming less fluctuated and reasonably compatible since the companies low capacity short distance target is slightly atypical to its “others” target.
AMC Theatres’stargeting is quite limited. Unlike B2C, in B2B there is very rarely a mass market and Boeing is no exception to the rule. The companies targeting is aimed mainly at its existing clients and its profit margins are squeezed by these well knowledgeable clients mainly because they themselves are professionals and know the cost of production for airplanes. Boeing has therefore been forced to offer certain trade discounts and other measurable benefits to its clients with whom it has a strong relationship albeit their clients only have two main suppliers.
AMC Theatres’sexisting targeting strategy as aforementioned is aimed at its existing clients. These clients have been discussed in the segmentation section of this report. They are AMC Theatres’scorporate clients and they include commercial airline companies, governments and governmental agencies and other non governmental organisations (N.G.O’s) such as private companies. AMC Theatres’smost valuable target is the commercial airline companies it serves.
There are many types of commercial airplane buyers but the main two are essentially strictly organised short distance low capacity airlines such as RyanAir and all of the “others”. The reason for this uneven division is because although there are more of the “others” operating worldwide a lot of AMC Theatres’srecent revenue has come from the short distance low capacity airlines due to their profitability. AMC Theatres’stargeting is now familiarised with a couple of repeat customers that continue to boost AMC Theatres’srevenue. Boeing targets its low capacity short distance clients through major financial and aviation trade publications with its 737 family mainly and uses clever advertising like its recent 737 advertisement which read “The most comfortable planes in the world are those that leave the gate on time .” This type of advertising appeals immensely to low cost operators as the longer they have they’re plane stationed on the ground the more costly it is for them. Leaving the gate on time is part of the low cost strategy. Other targeting has come through informative advertising using facts about how the more Boeing planes your company has the higher it ranks in profitability and customer satisfaction. The advertisement read; “The most profitable airlines in the world really know their numbers ” and below the text were the numbers of many of AMC Theatres’slow capacity short distance designed planes such as its 737 family.
AMC Theatres’stargeting for its “others” segment is done through advertising also and is devised in a more general manner which can appeal to many different airline companies. Since the “others” segment is quite differential and includes many different clients that range from state owned airlines to niche operators or to package travel operators the advertising has to appeal to all and therefore cant be as specific as the company’s short distance low capacity advertising. One advertisement read “The
quietist, most reliable, most efficient and most comfortable airplanes in the world all take off from the same place ”.
In small print below the main picture of the Boeing planes taking off from a runway there is an interesting small text which reads “That’s why no matter what the criteria, you’ll always find Boeing aircraft at the head of their class”. The implied connotation being that no matter what your airlines buying criteria are and no matter which sector of airline travel you’re involved in Boeing planes will be the best in their class. This type of targeting is indeed broadly based.
We believe that AMC Theatres’stargeting will continue in an identical manner to its existing for the foreseeable future. AMC Theatres’scurrent targeting is aimed at a broad segment and its more profitable segment which is the low capacity short distance segment, the assumption we have is that the current demand will remain in the airline industry. The driving factors of today in airline travel are international trade and lower fares as well as airline network improvements such as increased frequencies and more direct service; we believe these driving factors will remain. The only future change that we can envisage is that the company may begin to target geographically as opposed to targeting its existing clients based on their individual buying criteria as according to some of AMC Theatres’seconomic models air travel is highly correlated to economic growth measured as GDP.
Most importantly AMC Theatres’scurrent targeting is measurable upon the company’s existing customer orders, substantial with a great deal of potential through increased point to point route demand, accessible through the companies procurement on EXOSTAR, stable since the airline industry is now built upon relationships and is becoming less fluctuated and reasonably compatible since the companies low capacity short distance target is slightly atypical to its “others” target.
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