SITUATION ANALYSIS

STRENGTH AND WEAKNESSES

STRENGTH
One of the primary strength of Gold Screen Cinema(GSC) is the technique to catch the
attention of customers to use credit card is when they started to apply a credit card. Besides
that,. GSC launched a customised co-branded credit card in 2009, the GSC-Hong Leong
Credit Card which is the first to offer discounts for movie tickets (for adult tickets),
concessions and F & B in-dining service. The discounts will be given to those customers who
purchase more tickets, which is more unique than other cinemas.
Moreover, GSC was the first in the industry to spearhead online ticketing in Malaysia
via GSC e-Payment ticketing which is available at 26 locations whereby customers can
choose to print their own tickets with 2D barcode to be validated at the entrance checkpoint.
This makes the customer more convenience with the on-line tickets purchase which is 24
hours service and customers are not restricted to time constraint.
Besides movies, GSC halls also cater for events like gala premieres, press conferences,
product launches and seminars. GSC cinemas provide comfortable seating with facilities such
as wide screen projection, Digital and LCD projector for full audio-visual presentation for
event organizers. Therefore, GSC is not only targeting at customer for the purpose of
entertainment but also for other customer bases such as business, education and etc.



WEAKNESSES
Weak in service encounter. From customer's point of view, they get the vivid
impression of service in the service encounter when they interact with the service firm. They
receive a snapshot of organization's service quality and each encounter will contribute to the
overall satisfaction. The first stage of service encounter, that is the ticket office, is the
particular stage for customer to determine the service quality of the Golden Screen Cinema.
Weak service encounter in the first stage will lead to negative overall evaluation and bring
bad reputation to Golden Screen Cinema (GSC). However, the frontline employees, the ticket
sellers usually are the untrained worker. The inexperience and improper behaviour of the
frontline workers will affect the image of the company.
Fail to build strong relationship between the company and the customer. Customer
relationship can be built through creating an intimate relation between the service provider
and the customer, in order to build up the customer's loyalty and retention. However, the
untrained, unprofessional, highly turnover frontline employees have no a good interaction
skill with the customer, and sometime the bad attitude even irritate the customer. The poor
service provider-customer relationship cannot help the Golden Screen Cinema to retain their
customer effectively.
Capacity is inflexible. When there is very high demand in the container of the cinema,
the insufficient of the capacity will result in the customer perceive the Golden Screen Cinema
as a firm which is lack of reliability. This will reduce the possibility of the customer to return
in the next time. Beside, broadcasting movie is a kind of perishable services, the space which
is not used or purchased cannot be reclaimed and used or resold at a later time. So, the
limitation of the capacity is a barrier to handle the problem of fluctuation in customers
demand.

OPPORTUNITIES
The cultural movie can be advocated in the Golden Screen Cinema. Malaysia is a
multi-racial country, is rich in different cultural custom and this bring superiority to the
industry. The golden cinema can grab this chance, broadcasting more about this kind of
cultural movie in order to fulfill the customer need and create more revenue. For an example,
the latest movie "The journey", which was produced by the local director, has brought a great
sympathetic respond from the local movie-viewer and create a lot of revenue to the industry.
Rapidly growing of the network gives the Golden Screen Cinema a good chance to
target a wider market, including the youngster, generation Y. The generation Y, a sizable
market, is the first generation that grew up with the internet. They are likely to share anything
in the social network like the facebook, and twitter. The Golden Screen Cinema established a
special webpage to communicate, updating the latest movie in the webpage, allowing them to
know the information within a few click. Furthermore, the growing of the network allow
them to communicate globally, this can further increase the world of mouth about the cinema.
The advanced technology makes more desirable improvements to the movie service in
the cinema. The three dimensions movie (3D movie), or even the four dimensions movie (4D
movie), are available in the cinema now. This kind of brand new enjoyment has attracted
substantial portion of the market to watch the movie in the cinema. This is because of this
kind of satisfaction cannot be duplicated easily by the customer themselves.




THREATS
Unlimited accessing of the webpage reduces the competency of the Golden Screen
Cinema. The multimedia spreads their marketing power rapidly via the internet. They offered
the potential customer to have an unlimited accessing permission under a fixed monthly
payment. The customer will perceive this offer has much more value because they can watch
unlimited movie at any time and at any place without extra charging, which the strategic has
been practising by the Golden Screen Cinema.
Fast pace developing of technology will indirectly result in low demand of watching
movie in the cinema. The high technology causing the multifunctional handset or tabs or i-
pad can be seen everywhere in the marketplace. This novel cell-phone allows the customer to
watch the movie at their favourite place at any time. This new trend has become a new threat
to the Golden Service Cinema because the time of broadcasting and the location of the
cinema cannot carter to everyone.
Enormous large DVD selling trend reduce the customers desire of watching movie in
the cinema. The perishable characteristic of the broadcasting movie service limits the
customer to have a collection after watching the movie. In contrast, the DVD, which has been
sold widely in the marketplace is more favourable to the customer.This is because, the DVD
is a tangible product and it can be returned or reclaimed if the transaction goes wrong.



COMPARING THE COMPANYS STRATEGY WITH COMPETITORS
Golden Screen Cinema has cooperated with the CIMB bank in order to offer the
customer a better and easy way to book the movie ticket in a more convenient way. The GSC
encourages the customer to buy the ticket via online by providing discount if the customer
pays the bill by using the CIMB credit card. The CIMB bank employees also will promote
this benefit to their potential customer so as to persuade their customer to choose their bank
card. This is a mutual-relationship for both of the GNS and CIMB bank. Other than that, the
customer will perceives this transaction is more worthy for them because of they can get an
extra benefit from choosing the GSC rather than to choose to buy the ticket from other
company. This win-win situation among these three parties has become a powerful strategy
for the Golden Screen Cinema to compete with other competitors.
Golden Screen Cinema raises the customer's expectation by renewing the latest and
hottest movie in the web page that they have established. The GSC has established a web
page on the network place and keep notifying the customers about the upcoming movie. In
order to better attract the customers, the GCS always broadcasting the movie trailer on their
web page. This can arouse the impulsive desire of purchasing the movie ticket via the online
service.






COMPETITORS ANALYSIS
The TGV cinemas has been publicly accepted as the largest competitor to the Golden
Screen Cinema in this industry. The biggest cinema is located at the Sunway Pyramid, with
12 screens and 2598 seats. The latest TGV cinema has been officially opened at 12 July 2012.
The biggest charateristic of the latest TGV cinema is, it consists of a three dimension (3D)
digital hall. The TGV cinema's main objective is to provide the moviegoers a luxury service
when watching their favourite movies. So, the TGV cinema achieved this objective by
launching the "bean bag hall" in several outlets, that is, all of the seats inside the movie hall
were been replaced my the bean bag cushion..