Small movie theater-Industry analysis-Competitive analysis-SWOT Research Paper

Small movie theater-Industry analysis-Competitive analysis-SWOT analysis - Research Paper Example concerned to incur expenses differencing their products and services from those of their competitors as well as keeping their prices low in order to attract customers. This will eventually lead to a decrease in the amount of revenue that these businesses fetch. Their profit margins will also be lower. The existing movie theatre industries are likely to benefit from an increase in the barriers to entry. This means that new players to the industry will find it very difficult to enter the market place. Given the analysis, it is very clear that the idea of New Vision Movie Theatre is likely to fail. Being a new player in the market place and given the expected increase in the barriers to entry, it will be very challenging for it to survive. Losses are likely to be incurred as the research industry averages for profitability are very low for a new player in the market place. Growth risk is expected to be medium over the outlook period. It is predicted that the annual industry income is likely to increase by 1.3%. This predicted rise in the growth risk is very minimal and it will be extremely challenging for new players in the market place to keep up with it. The sensitivity risk on the other hand is expected to be low as compared to the previous year in which it was medium. It is expected that the per capita disposable income rise will decrease in the coming year (IBISWorld, 2015). This means that a small movie theatre industry would be a great business idea that is likely to flourish given this kind of prediction. This is because people will be in a position to spend more on leisure activities like going to watch movies in the movie theaters. The risk factor of external competition is however expected to remain constant. This shows that people will still prefer to view movies at their homes using the available entertainment products such as cables, sat ellite television and online streaming platforms. People would prefer to watch movies at the comfort of their homes