An overview of the organisation
The Cineworld group was founded in 1995 as a private company for entertainment. In 2006, the group was registered as a public company and on 2007 it entered the London stock exchange. It is a leading Cinema entertainment group not only in the UK but also in Europe. In 2012, the name changed from Cineworld and added the cinemas; this was after the acquisition of the 21 cinemas chains from picture house that was a cinema entertainment company. In 2014, Cineworld Cinemas acquired cinema city, and this made the entertainment company to grow in terms of profit and size significantly Company overview (2015).
Evaluate the organisation’s marketing environment in the entertainment and technology sector using BCG matrix
Marketing environment is the forces in business that affect its stability in its services delivery Mason & Harris, (2006). The environment is classified into three levels; the first is the microenvironment, the second is the meso environment, and the last one in the macro environment Dopfer, Foster, & Potts, (2004). Technological aspect refers to the level of technology application in the business.
The BCG matrix evaluates using four aspects that are the dogs, which are a business with little market share and hence low growth rate. Such business is up for a divestiture option. Question market, they grow rapidly hence uses a lot of cash but have low market share, it only prosper when the market grows or vice versa and becomes a dog Hax & Majluf, (1983). Stars have a large market share despite their rapid growth and, for this reason; it becomes a cash cow even when the market decline Seeger, (1984). Cash cows, It leads in a mature market and give more returns than it consumes in service production. Cineworld was a dog before the acquisition of the cinemas chains from picture house that was probably a question mark. Later it acquired cinema city and became a start, the whole group have grown into cash cow since it’s the leader in cinema entertainment business over 1800 screens across Europe.
In conclusion and in terms of technology, it utilizes the best 3D screens, and high definition sound systems and not forgetting the couch and the crunchy snacks. This makes Cineworld cinemas the largest market share holder in its industry.
Company overview. (2015, September 1). Retrieved October 15, 2015, from http://www.cineworldplc.com/about-us/company-overview.aspx
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Hax, A. C., & Majluf, N. S. (1983). The use of the growth-share matrix in strategic planning. Interfaces, 13(1), 46-60.
Mason, K. J., & Harris, L. C. (2006). Market orientation emphases: an exploration of macro, meso and micro drivers. Marketing Intelligence & Planning, 24(6), 552-571.
Seeger, J. A. (1984). Research note and communication. Reversing the images of BCG’s growth/share matrix. Strategic Management Journal, 5(1), 93-97.