Research On The Competence Of Theater Chain In The Second-tier Cities

Against the background that the Chinese film industry develops rapidly, the development of the theater chains appears a tendency of the intense competition in the first-tier cities and the expansion towards the second-tier cities. The paper considers that the film market of the second-tier is obvious different from the market of the first-tier cities, mainly in the three aspects of the percentage of the TOP100theaters, the market share of the box office, and the ability to develop the TOP10theater chains. For better research, the paper takes Jinan which is a typical second-tier city as the case.In2011, Jinan’s Box Office is150million Yuan, which is only11%of the movie box office for Beijing. There are two homegrown theater chains and four exotic theater chains in Jinan. In such a situation that the Box Office is so disappointing, is the movie market in Jinan full of potential? And how is the competence of the theater chains? In view of these thinking, the paper analyzes the competitive power of LUXIN Cinema, aiming to reflect the competence of theater chains in second-tier cities.This paper is divided into five parts. Part One defines the first-tier cities and second-tier cities, and probes into the movie market and theater chains in the first-tier cities and second-tier cities. Then, the paper introduces the LUXIN Cinema which is one of the theater chains in second-tier cities, emphasizing that the process from theaters to theater chain enhances the strength of LUXIN Cinema. In addition, this paper analyzes the macro-environment of LUXIN Cinema from four aspects—political environment, economic environment, social environment and technological environment. Part Three describes the basic information of these theaters in Jinan, and simply researches the competitors. Part Four discusses the core competition resource from the aspects of brand, product and serving ways. The Last part tells competence strategy for LUXIN Cinema based on SWOT analysis. And the paper argues that under the favorable macro background, LUXIN Cinema can take the advantage of the abundant fund, the cooperative relationship with INZONE CO., eliminating the demerits without clear market positioning and unique characteristics. Combined with the strategy theory of Michael Porter, it is better to choose the differentiation strategy. Therefore, the author considers that to improve the power, LUXIN Cinema should create LUXIN Brand--"The Classic Brand, Audio-Visual Frontier", build a Reasonable Fare System to develop the Faithful Audience, and use a variety of marketing means including carrying out the activities and increasing the propaganda.