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American Multi-Cinema, Inc. Analysis

Introduction

American Multi-Cinema, Inc. (AMC) is the US-based movie theatre chain that was founded in 1920. With time, AMC acquired different other cinema theatres and became the largest organization in this industry. Today, AMC involves more than 2800 screens in more than 350 theatres in Europe, while these numbers are 2-3 times higher in the US (AMC Entertainment Holdings, Inc., 2020). The main advantage of AMC is focusing on innovation and technology to remain a leader in the entertainment industry.

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Core Competences

Core competences refer to a set of advantages that is used by a company to distinguish itself from its competitors. For AMC, core competences are delivering convenience and entertainment to customers and ensuring premium quality of services. The company is committed to innovation, which allows it to implement such technologies as IMAX, Dolby, BigD, and so on (About us, 2021). In addition, AMC introduced Dine-In Theatres that offer the best food and beverage options. The leadership of these movie theatres follows the idea of constant improvement not only to meet but also exceed customer expectations by providing them with great experiences.

VRIO Analysis

The VRIO analysis includes four factors, such as value, rarity, imitability, and organization. AMC cinema provides improved concession opportunities, which is rare among its rivals. Since it is the largest theatre chain in the US and worldwide, these benefits indicate value and high-quality organization. The factor of value is also complemented by paying attention to innovations and constant enhancement of the services offered. As for rarity, AMC provides excellent food and beverage options, while its competitors often focus on traditional drinks and popcorn only. Technologies can be difficult to imitate, and the size of the AMC chain is another benefit that limits other companies from adopting similar strategies (AMC Entertainment Holdings, Inc., 2020). The physical features of cinemas and the possibility of reserved seating point to a proper organization. In other words, the entire organization of AMC is designed to capture value from its competitive advantages to present them to customers.

Strengths and Weaknesses

Continuous and ambitious theatre advancement is the first strength of AMC cinemas. This chain clearly understands that movie theatres cannot compete with home settings, which motivates them to renovate customers’ experience. For example, AMC’s in-theater experience was recently improved by premium format screens and mobile ticketing options (About us, 2021). Considering that more and more people use social media daily, the last option seems to be especially important. Communication with customers through social media is another strength that allows for receiving feedback from customers and timely responding to their requests.

However, the reliance on Hollywood should be noted as a weakness of AMC movie theatres, which means that they primarily offer popular films. It attracts many customers to watch famous Marvel universe movies, but customer shortages may occur in a lack of new releases. Also, the rapidly changing customer preferences is another weakness that can be expressed in lowering interest to visit cinemas. Therefore, the company should pay attention to some other areas to invest, such as programming or streaming services.

Conclusion

To conclude, AMC is the largest chain of movie theatres that offers a combination of high-quality services. Its customers receive high-quality seating organization, screens, as well as beverage and food options. The VRIO analysis shows that AMC has unique values, and such rare strategies as continuous development allow attracting and retaining more customers. Technology investment and implementation serve as the key competitive advantage, while the company’s weaknesses are reliance on Hollywood and changing customer preferences.

References

About us. (2021). Web.

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AMC Entertainment Holdings, Inc. (2020). Web.

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StudyCorgi. (2022, October 29). American Multi-Cinema, Inc. Analysis. Retrieved from https://studycorgi.com/american-multi-cinema-inc-analysis/

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StudyCorgi. 2022. "American Multi-Cinema, Inc. Analysis." October 29, 2022. https://studycorgi.com/american-multi-cinema-inc-analysis/.

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StudyCorgi. (2022) 'American Multi-Cinema, Inc. Analysis'. 29 October.

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