Entertainment Industry in China – Porter's Five Forces Strategy Analysis

  • ID: 585728
  • Report
  • Region: China
  • 20 pages
  • Aruvian's R'search
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The Chinese entertainment industry has been growing at an excellent pace in recent years, surpassing the pace of the overall economy as well. The industry is booming particularly aided by the rise in the disposable incomes of the Chinese middle class. The growth in the disposable income has meant that there has been enough extra money for people to spend on the entertainment sector, such as watching movies, internet, gaming, and other such sub-sectors of the industry.

Movies are very popular in China and there are approximately 15 movie studios in China, among the most famous are Shanghai studio, Beijing studio and Changchun studio. But the movies that are most popular are not produced by these studios, but come from foreign sources including the U.S. Despite a variety of administrative measures by the Chinese central government, imported films represent a major share of the Chinese market. It is estimated that revenue from ten imported films was responsible for 70% of the market with the remaining 30% for 100 or more domestic films.

The research analyzes the Entertainment Industry in China in Michael Porter’s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.
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A. Executive Summary

B. Introduction to the Industry
B.1 Industry Definition
B.2 Industry Profile
B.3 Future Outlook

C. Porter’s Five Forces Strategy Analysis
C.1 Bargaining Power of Buyers
C.2 Bargaining Power of Suppliers
C.3 Competitive Rivalry in the Industry
C.4 Threat of New Entrants
C.5 Threat of Substitutes

D. Conclusion

E. Glossary of Terms
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