Contemporary Canadian Business - Cineplex Case Study

Questions: 1.Identify and discuss Cineplex's current business-level strategy. Is it working why or why not?2.Explain what types of diversification are seen in this case? How did Cineplex diversify?3.Which management philosophy do you think would work best for Cineplex? Explain with examples. Answers: 1. Cineplex is using a differentiation business level strategy to meet the needs of its customers amid high competition level in the entertainment market. The company focuses on superior quality and outstanding customer services. Conversely, the company focuses on developing diversified ways of reaching its customers, offering unique services, presenting itself as an exclusive and a prestigious image to the market. Through the differentiation strategy, the company has managed to decrease the competition rivalry in the market. Since 2012, many smaller theatres have been forced to close their doors amid high competition in the market from Cineplex (Kenny, 2009). 2. The company has applied three types of diversification strategies in its operations namely horizontal, concentric and heterogeneous diversifications. Cineplex used the horizontal diversification by digitalising all its current products to appeal to its current customers as well introducing new packages to them (Kenny, 2009). Through concentric diversification, the company has introduced new services by allowing its customers to download movies and watch them at their convenience, contracting big names such as Sony, Universal, Paramount, and Warner Bros to avail a downloaded version of its products. The movies come in different types that allow the customers to watch using either tablets, desktops or smartphones. Lastly, the company applies heterogeneous diversification by acquiring smaller theatres that used to offer different services on its own with the aim of diversifying its portfolio (Wang, 2016). 3. "Focus on market diversification but keep up with the pace!!" The company has used diversification of its service portfolio to maintain customer loyalty and attract the new once. However, the company should be ready to offer new services to keep up with the customers' preference (Wang, 2016). References Kenny, G. (2009). Diversification Strategy: How to Grow a Business by Diversifying Successfully. New York: Kogan Page. Wang, J. (2016). The Wanda Way: The Managerial Philosophy and Values of One of China's Largest Companies. Tokyo, Japan: Lid Publishing.