Discuss about the International Business Information System for Movie Bazaar.
The main purpose of this assessment is to analyze the performance of a Movie Rental business which operates in Australia. The company which is taken into consideration for this assessment is Australia Movie Bazaar. The assessment will be analyzing the performance of the business and also determine the reason for the fall in the sales of the business in certain areas and also analyze the overall level of production which the business faces from other rental companies (Chopra and Veeraiyan 2017). In order to analyze the same, Porter’s Five Force Model is taken in consideration which will be discussed in the coming paragraphs (E. Dobbs 2014).
The assessment focuses on identifying the business conditions for Movie retail business considering Australian Movie Bazaar and also assessing the market for the same (Nugent 2015). The strengths and weakness of the business will be identified as well in later paragraphs along with the threats which the business faces. The assessment will be focusing the overall business performance of Australian Movie Bazaar.
Movie Bazaar is a movie rental company which operates in Australia and has three outlets which are situated in Victoria region of Australia which are namely Ringwood, Kew and Flemington. The business allows customers to rent videos for a few days on which rental charges are applicable. Ringwood store of the business has highest sales and contributes to the major part of the sales revenue of the company. The business has a variety of categories of videos which are available which include comedy, Horror, Action and similar other categories. On the basis of renting of such categories of movies the business earns profits.
As per the analysis of the revenues which is made by the business while operating in Ringwood store, the performance of the business in terms of total revenue of the business is given. The analysis which is shown in the appendix section clearly shows that the business has earned more revenues from the fourth quarter of 2016 and the same trend continues throughout all the quarter of 2017. In the third quarter of 2016, the total revenue which the business earned was shown to be $ 97,758.25 which has improved tremendously in the first quarter 2017 and the same is shown is to be $ 106,500. This is mainly due to the overall increase in the sales revenues which is generated from sales of comedy category of movies. The maximum sale is achieved by the business in the fourth quarter of 2017 which is shown to be $ 122,130 which is due to the improvement in the sale of adventure movies and comedy movies.
The product category comparison of business aims to shows that which category of product earns maximum revenue for the business. The analysis along with table is shown in the appendix section which shows that adventure movies sales have increased significantly and the same has grown by around 45.76% which shows the change in the taste and preference pattern of the consumers. In addition to this, there has been an increase in sales revenue of action movies and animation movies which have growth respectively by 12.59% and 5.48% in comparison to 2016 estimates. The total decline in sales is less than total in increase in sales in other categories and the net increase is shown as $ 41,653.38 in net sales of the business.
In a business environment, the competitive and Technological analysis plays a vital role in the development of the business and also on the overall performance of the business (Rothaermel 2015). In order to analyze the competitive and technological market of the Movie Bazaar, Porter five force model is applied which is shown in the following paragraphs:
This refers to the overall level of competition which is faced by the business in industry. As shown in the case study, the market in Australia is rather competitive in nature and it is only due to the changing environment that some of the business has either closed or scaled down the operations of the business (Dobrivojevic 2013). The major threat which the business faces is due to the increase in the competitiveness in the market with the advent of online movie rental system (Yunna and Yisheng 2014). This can be attributed as one of the main reasons for the fall in the sales of the business. The case study shows that the sales of Kew and Flemington has fallen sharply which is a matter of concern for the management of Movie Bazaar.
The business of Movie Bazaar is dependent on the different categories of movies which are provided on rent by the company. In the world of developing technology and advent of online movie sites have brought serious competitive pressure and also increased the risks of Substitution (Dälken 2014). Moreover, there is always a risk of piracy which have become quite common with the advent of Online movie sites. The possible substitute for products provided by Movie Bazaar are Netflix, Amazon Prime and Extratorrents.
The threats which are associated with new businesses entering movie rental industries are low at present which may be due to the declining significance of Movie rentals. But the major reason for the same is due to the existence of barriers to entry which are the startup costs which is significantly more as movie distributers are to be contacted, proper infrastructure has to be set up (Altunta? et al. 2014). Another barrier is related to the software costs which are required in a movie rental business in case the business is providing online renting.
The disruptive technology which can be identified in the case of Movie Bazaar is the introduction of online movie sales websites such as Torrents, Amazon Prime (Gertsen and Tollestrup 2017). This signifies that the introduction of online movie download system has affected the business of Movie rentals adversely.
Sustaining Technologies can have positive impact on the business environment of the Movie Bazaar and the management should formulate specific plans for the same. The business can provide better quality of movies along with subtitles for a reasonable range of prices depending on the popularity and demand of the movie.
The bargaining power of the customer is always a factor which can impact the total sales of the business. In case of Movie Bazaar, the movies which are offered on rent are easily available on various movie websites from where the customer can easily download the same (Takata 2016). This provide the customer immense power to bargain and thereby this affects the sales revenue which is generated by the business.
The Australian Movie rental industry has been impacted with the introduction of website for movie downloads. The case study itself shows that the overall sales of the businesses are declining and many of the business have closed down or scaled down the operations of the business. This is a reason due the management of Movie Bazaar needs to adapt to the changes in the environment in order to survive.
Conclusion
Thus, from the analysis of the business environment of Movie Bazaar, it is clear that the overall market of Movie rental has changed drastically and different business are finding it difficult to adapt to the changes in the rental industry. In the case of Movie Bazaar, the stores of kew and Flemington have experienced fall in sales and therefore, the overall profitability of the business has reduced.
Reference
Altunta?, G., Semerciöz, F., Mert, A. and Pehlivan, Ç., 2014. Industry forces, competitive and functional strategies and organizational performance: Evidence from restaurants in Istanbul, Turkey. Procedia-Social and Behavioral Sciences, 150, pp.300-309.
Chopra, S. and Veeraiyan, M., 2017. Movie Rental Business: Blockbuster, Netflix, and Redbox. Kellogg School of Management Cases, pp.1-21.
Dälken, F., 2014. Are porter’s five competitive forces still applicable? a critical examination concerning the relevance for today’s business (Bachelor’s thesis, University of Twente).
Dobrivojevic, G., 2013. Analysis of the competitive environment of tourist destinations aiming at attracting FDI by applying Porter’s Five Forces Model. British Journal of Economics, Management and Trade, 3(4), pp.359-371.
Dobbs, M., 2014. Guidelines for applying Porter’s five forces framework: a set of industry analysis templates. Competitiveness Review, 24(1), pp.32-45.
Gertsen, F. and Tollestrup, C., 2017, December. Towards a conceptual model of digital disruption. In ISPIM Innovation Symposium (pp. 1-8). The International Society for Professional Innovation Management (ISPIM).
Nugent, M., 2015. Video cassette revolution: the VCR in Australia.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
Takata, H., 2016. Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011. Journal of Business Research, 69(12), pp.5611-5619.
Yunna, W. and Yisheng, Y., 2014. The competition situation analysis of shale gas industry in China: Applying Porter’s five forces and scenario model. Renewable and Sustainable Energy Reviews, 40, pp.798-805.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download