The Research On The Promotion Of Core Competitiveness Of Shanghai United Cinema Circuit Liabi Lity Company

The year 2002 witnessed a revolution of China’s film distribution and exhibition. The revolution emerged China’s cinema circuit system, which brought vitality to Chinese film market and took the industry all the way from the bottom to rejuvenation. Shanghai United Cinema Circuit Liability Company(SUC) is an epitome and typical example within the 12-year history of China’s cinema circuit system. It, along with the nation’s film industry, has experienced both depression and rejuvenation, and has stepped out of the bottom to a brand new glory. SUC has kept being among the top three circuits in China.By studying the case of SUC, we can not only learn the 12-year glory, but also discover some inevitable difficulties and problems that Chinese circuits are facing now. Comparisons between different business models of both domestic and foreign circuits can help us find a corporate strategy for SUC and some tactics to strengthen its core competitiveness. Through the study, we will find it clear that core competitiveness for SUC is the economy of scale. To be precise, the scale here refers to a figurative index related to quality and quantity of SUC’s cinemas within China, which is the total box-office revenue of SUC’s cinemas. The Box-office result in rating, which brings market influence and attracts more cinemas to join SUC and more possibilities of different business models with more collaborators.To strengthen SUC’s competitiveness is to find an effective way to increase SUC’s scale. Some possible ways are to build more cinemas, to make more investment in contract cinemas, and to improve the width and depth of business. Certainly, diversified capital operation is also worth of trying. By make its equity available for co-operators with the most recourses, SUC may merge other cinema circuits or cinema management companies to achieve a fast incensement in scale.Considering the risk from unique revenue source for cinema circuits, this paper also try to explore some possibilities of diversified business models beside the economy of scale which brings stable corporate profit.