PYRAMID SAIMIRA THEATRE LIMITED

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.

BRIEFING THE CASEIn context of:• Indian Film Industry• Film Entertainment Segment• PSTL• Flagship Project of PSTL

INDIAN FILM INDUSTRY

Introduction 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

FILM ENTERTAINMENT SEGMENT

Entertainment Industry 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

Film Industry - Categorisation

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

PYRAMID SAIMIRA THEATRE LIMITED

Brief

Chennai based – India’s largest

theatre chain company – 29

multiplexes, 371 screens in 2007

Concentrated on theatre business

Net profit – Rs. 158.82 Cr.

FLAGSHIP PROJECT OF PSTL

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

Brief IT – 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

PORTER’S FIVE-FORCES ANALYSIS FOR

INDIAN FILM INDUSTRYHighlighting the factors relevant for Pyramid Saimira’s Strategic Planning

PORTER’S FIVE FORCE MODEL

INDUSTRY COMPETITORS 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

POTENTIAL NEW ENTRANT 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

BUYERS 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 value-offering and activity

• Ability to substitute• Price Sensitive

SUBSTITUTES  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

SUPPLIERS The power of suppliers to drive up

the prices of your inputs. Based on:

• No. of suppliers: in-house & external

• Size of Suppliers: agencies for each of

• Uniqueness of service: the equipment• Your ability to substitute• Cost of changing

STRATEGIC GROUP ANALYSIS

Highlighting the factors relevant for Pyramid Saimira’s Strategic Planning

STRATEGIC GROUPS

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.

STRATEGIC GROUP ANALYSIS

 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

STRATEGIC GROUP ANALYSIS

 

BREADTH OF SERVICES OFFERED

AVERAGE PRICE OF THE SERVICES

Narrow Broad

High

Low

Radio, Television, Live Entertainment, Home video

Yash Raj, RGV

Adlabs, Sahara, Percept

Inox Leisure, PVR

PSTL

Real Image, Red Ice

IMPACT OF SUBJECTIVE FACTORS

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

IMPACT OF SUBJECTIVE FACTORSSTRATEGIC STEPS ADOPTED IMPACT OF FACTORS

IT-driven venture

One-stroke release of

films

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

IMPACT OF SUBJECTIVE FACTORSSTRATEGIC 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

IMPACT OF SUBJECTIVE FACTORSSTRATEGIC STEPS ADOPTED IMPACT OF FACTORS

Creating a franchise

system

Expansion plans in India & abroad

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

Presented by: 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

THANK YOU !!!