Vision: To be the largest vertically integrated theatre chain in the world; carving a unique space in mass access using

theatre infrastructure to deliver education, entertainment and information at affordable cost to all sections of society.

In context of: Indian Film Industry Film Entertainment Segment PSTL Flagship Project of PSTL

National economic growth rate: 9% Compound annual growth rate of media industry: 18% Traditionally,
Unorganised Fragmented

Managed through experience

Recently,
Corporatisation Legal processes involved Professionalism Information Technology Communications Technology

 Presently,

Rs. 437 billion By 2020, Rs. 1 trillion Various segments of the industry
Radio Television Films growth of 16% annually; potential segment OOH advertising

Live entertainment

STRATEGIC GROUPS

SIZE BASED ON REVENUE

The Value Chain consists of:

Production Distribution Retail Music Home video

Large companies => Rs. 1000 Cr.

Adlabs, Sahara, Percept,

YRF, UTV

Middle-rung companies Rs. 300-500 Cr.

Inox, PVR, Pyramid Saimira

Emerging companies Rs. 100-300 Cr.

Real Image, Red Ice and

Seven Entertainment

 Chennai

based Indias largest theatre

chain company 29 multiplexes, 371 screens in 2007

Concentrated Net

on theatre business

profit Rs. 158.82 Cr.

Mega digital theatre chain project with a total cost of Rs. 414.5 Cr.

 driven venture Chain of theatres for exhibition of films encrypted in digital medium One-stroke release and exhibition of films to reduce piracy Providing value-added services; shopping malls, exhibition spaces, other venues Revenues emanate from ticket sales Achieve economies of scale through volume sales
IT

Highlighting the factors relevant for Pyramid Saimiras Strategic Planning

Defines the strength of competition in the industry Based on:

No. of Competitors: INOX, PVR, Real Image,

Red Ice Quality Differences: IT-driven venture, on a digital platform Switching costs: Costs associated with changing from one value provider to another Costs of leaving the market

 Power

is also affected by the ability of people to enter your market Based on:
Time of Entry: Unorganised film industry Potential entrants: Adlabs, Sahara, Percept Specialist knowledge: operating in one area of the

value chain Cost Advantages: Could be comparatively low Technology Protection

 The

power of your customers to drive down your prices. Based on:

No. of customers: Large population has adapted

to the entertainment segment Difference between competitors: in terms of valueoffering and activity Ability to substitute Price Sensitive

Different goods that, at least partly, satisfy the same needs of the consumers and, therefore, can be used to replace one another. The ability of your customers to find a different way of doing what you do. Based on:

Substitute performance: Specific to one area (Live

entertainment, Music, Television) Cost of change to the consumer: ideally, would be minimal

 The

power of suppliers to drive up the prices of your inputs. Based on:

No. of suppliers: Size of Suppliers: Uniqueness of service: Your ability to substitute

in-house & external agencies for each of the equipment

Cost of changing

Highlighting the factors relevant for Pyramid Saimiras Strategic Planning

 Businesses

that sell similar products or

services to the same segment of the population are in a strategic group

Here, these could be all the companies in the film entertainment segment

E.g.

Inox Leisure, PVR, RGV, Adlabs, etc.

The examination of businesses that function within the same strategic group is called strategic group analysis

The goals of strategic group analysis vary depending on

several strategic group characteristics, including the size

of the market, the diversity of products offered, the geographical proximity of the competing companies, and

where the products are sold. Branding, marketing,

quality, and price also are factors that must be considered

High

Radio, Television, Live Entertainment, Home video Yash Raj, RGV

AVERAGE PRICE OF THE SERVICES

Adlabs, Sahara, Percept

Inox Leisure, PVR

PSTL
Real Image, Red Ice Low

Narrow

BREADTH OF SERVICES OFFERED

Broad

The subjective factor always functions within the framework of objective relationships and conditions

STRATEGIC STEPS ADOPTED

IMPACT OF FACTORS

IT-driven venture

Technologically advanced, strong and capable partners , first mover in the industry Eliminate piracy, established chain will work through satellite-communication, avoid costs of distribution & amenities

One-stroke release of films

STRATEGIC STEPS ADOPTED

IMPACT OF FACTORS

Value-added service providers i.e. shopping malls, exhibition spaces, education & training venues Distribution through a communication network

Attract a wider audience, cater to more than 1 segment

Eliminates involvement of middlemen, achieve economies of scale through volume sales

STRATEGIC STEPS ADOPTED

IMPACT OF FACTORS

Creating a franchise system

Sharing of initial high costs of realty by giving out digital distribution rights to franchisees Creating modes of entry into the foreign markets, working towards establishing its presence in domestic & international markets, acquiring foreign companies

Expansion plans in India & abroad

Saurabh Bansode M-03 Shrikant Jadhav M-15 Nupur Misal M-25 Khyati Patel M-28 Anitha Menon M-37 Sushant Karnik M-39 Sayali Rege M-44