Angelo Irawan - 1140003185
Deon Oxivar - 1140003254
Jonathan Nicholas - 1140002655
Teodorus Ernest - 1140002693
CASE STUDY 2:
BlitzMegaplex vs. 21Cineplex
The main issue of this case study talks about how BlitzMegaplex is trying to figure out new marketing strategies in order to get a balanced competition with the long-time market leader in cinemas industry, 21Cineplex.
First of all, let’s talk about what BlitzMegaplex has done so far to compete with 21Cineplex. As the new market challenger in the industry, BlitzMegaplex had to define its strategic objective and opponents. It is clear that their opponent is the ...view middle of the document...
* Bypass attack
BlitzMegaplex attempts to diversify into unrelated products, which is in this case, the business units like BlitzShoppe, BlitzgameSphere, Blitzbeat, Billyard, and karaoke, for which 21Cineplex did not have. Furthermore, they also leapfrogged into new technologies by introducing 3D RealD movies. BlitzMegaplex was the first cinema in Indonesia to play 3D movies, while 21Cineplex didn’t provide 3D technology at that time.
Besides those general attacks, BlitzMegaplex also offers specific attack strategy, such as implementing BlitzCard, a pre-paid card that can be used for booking tickets through the internet, choose your own seats, and enjoy all the entertainment on BlitzMegaplex.
On the other hand, 21Cineplex has to maintain its status as a long-term market leader and to stay number one in the industry. 21Cineplex found ways to expand total market demand and protect its current share through defensive and offensive actions.
* Expanding total market demand
21Cineplex made numerous improvements and innovations in order to compete with BlitzMegaplex. Some of the most notable innovations made to expand its market demand were the development of Cinema XXI and The Premiere aimed for the upper segment. Cinema XXI can be considered an upgraded and improve version of the classic 21 since it features numerous new extravagant facilities like lounges, clubs, and cafes. The Premiere can be considered as 21Cineplex’s most luxurious class of auditorium that offers maximum level of comfort and can be compared with Velvet Room and Dining Room on BlitzMegaplex. This movement attracts new customers and brings new ways to enjoy 21Cineplex.
* Protecting market share
21Cineplex has been very aggressive in protecting its market share by doing continuous improvements and numerous counteroffensive defense strategies. The development of Cinema XXI and The Premiere that has been explained before can also be considered an example of 21Cineplex’s counteroffensive defense. 21Cineplex also tries to compete with BlitzMegaplex’s Blitzcard by introducing a mobile ticketing system called M-Tix. Another notable counteroffensive defense by 21Cineplex would be the decision to lower the tickets price, especially the “Nomat” program every Monday, in which the prices are lowered by 75%-50% than usual.
Both 21Cineplex and BlitzMegaplex have executed their attack and strategies. And now with everything that has been going on between these two cinemas, BlitzMegaplex is hoping to have a balanced competition between competitor and customer orientation. However, we find BlitzMegaplex’s goal of a “balanced” competition pretty ambiguous and vague. There are some questions to answer because the solutions may vary, such as: 1) How does BlitzMegaplex define a balanced competition exactly? 2) Is BlitzMegaplex trying to win the market leader status over 21Cineplex, or is it merely trying to increase its competitive strategies and still remain the...