Question

What is the Strategy Recommendations of Cinemark's and how you Evaluate Current Strategies and Identifying Major Strategic Issues? Please explain in details?

Answer 1

Cinemark’s Strategy Recommendations

Earlier Cinemark’s focus was on operations, advancement of theaters and extending their brands positioning. While presently Cinemark with its growth strategy is moving towards digitization and up gradation of technology (one of such technology is the use of XD technology in the theaters). In order to acquire a strong position in the U.S market it is continuously utilizing its growth strategy in constructing new theaters. Also Cinemark is moving towards digitization of both domestic and international theaters. Although, these improvements are time consuming and costly but they are very beneficial for Cinemark’s growth in the theater industry.

Evaluation of Current Strategies

As discussed above Cinemark is continuously using its growth strategy to gain a strong market position. It is also focusing on providing better technology services to its customers, assuring high security and safety of the customers, technological up gradation and proper training and development programs for the Staff.

As per the SWOT analysis Cinemark’s circuit is the third largest in the U.S among other competitors due to its huge diversification, innovative technologies, increased geographical locations and strong reputation of the brand among customers.

Major Strategic Issues

Despite these positive aspects there are also some threats involved which can obstruct the growth of Cinemark. These consist of increased cost of upgraded technologies, Pirating of movies, entry of new competitors in the market and decline in the number of customers as a result of increased cost of tickets. Thus, these are some of the Cinemark’s strategic issues which need to be checked with proper strategic planning.