Essay On External Environment

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What components in the external environment do you think might be most important to movie theater chains? General economic state – generally, how is the economy doing. Like the article states, back in 2011 during the economic downturn people were seeing less movies simply because they had less money to spend and needed to allocate it into different areas. Evolution of technology – with technology developing as fast as it is movie theater companies have to keep up and make sure they are not left behind. Smart phones have made it possibly to watch movies on the go which decreases the incentive to go to the movies. Netflix and YouTube have also made it much more possible for families to simply stay at home and watch movies rather than paying to go to the theater. Movie theaters are seeing customers now choose convenience over quality, which…show more content…
This trend is occurring, because there are many external elements that have begun to make the industry unstable. One example of an external environment that is causing the movie theater industry to be unstable is the trend of Americans choosing home movie watching vs. going to a movie theater. The American public has become accustomed to the idea of sitting at home watching Netflix and relaxing. Many individuals are choosing to pay a small premium a month to watch unlimited movies, rather than spending more than the cost of the small premium to view only one single film. Technology has started to grow rapidly around the world, causing complex uncertainty for the movie theater industry and how it will compete with the growing technology market. People can now have fantastic quality televisions, and other electronic devices that make watching a movie at home comparable to watching a movie at the theater. This causes a lack of an incentive for people to choose to go to the movie theater when they essentially have theater quality technology at

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