Harvard Case - MoviePass
"MoviePass" Harvard business case study is written by Willy Shih. It deals with the challenges in the field of Strategy. The case study is 14 page(s) long and it was first published on : Feb 23, 2019
At Fern Fort University, we recommend that MoviePass, in its current state, should cease operations. The company's business model, predicated on unsustainable pricing and a lack of strategic alignment, has proven to be fundamentally flawed. We suggest a complete restructuring, focusing on a more sustainable, data-driven approach, potentially involving a pivot to a subscription-based model with tiered pricing and targeted offerings. This strategy would prioritize long-term viability over short-term growth, emphasizing value creation through data analytics, strategic partnerships, and a focus on customer segmentation.
2. Background
MoviePass, a start-up founded in 2011, disrupted the traditional movie theatre industry with its innovative subscription-based model. For a flat monthly fee, subscribers could watch an unlimited number of movies in theatres. This 'all-you-can-eat' approach, fueled by venture capital, initially attracted millions of subscribers, driving a surge in movie theatre attendance. However, MoviePass's aggressive pricing strategy, coupled with a lack of robust data analytics and strategic planning, led to significant financial losses and ultimately, its downfall.
The main protagonists in this case study are:
- Mitch Lowe: The CEO of MoviePass, a seasoned entrepreneur with experience in the entertainment industry.
- Ted Farnsworth: The founder of MoviePass, a visionary entrepreneur who initially spearheaded the company's disruptive approach.
- The Movie Theatre Industry: The traditional players, such as AMC Theatres and Regal Cinemas, who initially resisted MoviePass but eventually sought to adapt to the changing landscape.
3. Analysis of the Case Study
MoviePass's downfall can be attributed to a combination of strategic missteps and a lack of foresight. We can analyze these issues using Porter's Five Forces, the Ansoff Matrix, and the BCG Matrix:
Porter's Five Forces:
- Threat of New Entrants: High. The subscription model was relatively easy to replicate, leading to a surge in competitors.
- Bargaining Power of Buyers: High. Consumers had numerous choices, and the low price point gave them significant leverage.
- Bargaining Power of Suppliers: Low. MoviePass was not dependent on any single supplier, and the theatre chains were eager to attract customers.
- Threat of Substitutes: High. Streaming services like Netflix and Amazon Prime offered a convenient and cost-effective alternative to going to the cinema.
- Competitive Rivalry: High. The market was characterized by intense competition, with numerous players vying for market share.
Ansoff Matrix:
MoviePass initially pursued a Market Penetration strategy, aiming to capture a large share of the existing market with its low-cost subscription model. However, this strategy proved unsustainable, leading to a shift towards Market Development by expanding into new markets and diversifying its offerings. This expansion, however, lacked strategic planning and ultimately failed.
BCG Matrix:
MoviePass can be categorized as a Question Mark in the BCG Matrix. The company had high market growth potential but low market share, requiring significant investment to sustain its growth. However, its unsustainable pricing strategy and lack of data-driven decision making prevented it from achieving a dominant market position.
4. Recommendations
To ensure long-term viability, MoviePass needs to fundamentally restructure its business model and adopt a more sustainable approach. We recommend the following:
- Pivot to a Tiered Subscription Model: Offer different subscription levels with varying benefits, such as different movie viewing limits, discounts on concessions, or access to exclusive screenings. This would allow MoviePass to cater to different customer segments and generate revenue based on their willingness to pay.
- Data-Driven Pricing and Targeting: Utilize data analytics to understand customer preferences, viewing habits, and spending patterns. This will enable MoviePass to develop targeted pricing strategies, personalized offers, and customized content recommendations.
- Strategic Partnerships: Collaborate with movie studios, theatre chains, and other entertainment companies to offer exclusive content, discounts, and other value-added services. This will enhance the value proposition and attract new customers.
- Focus on Customer Segmentation: Identify distinct customer segments based on demographics, preferences, and spending habits. This will allow MoviePass to tailor its marketing efforts, pricing strategies, and content offerings to specific customer groups.
- Embrace Technology and Analytics: Invest in advanced technology and data analytics platforms to optimize operations, personalize customer experiences, and gain valuable insights into market trends.
5. Basis of Recommendations
These recommendations are based on a comprehensive analysis of MoviePass's current situation, considering its core competencies, external customers, competitors, and the overall attractiveness of the market.
- Core Competencies and Consistency with Mission: MoviePass's core competency lies in its ability to leverage technology to disrupt traditional business models. This recommendation aligns with its mission by focusing on data-driven decision making and innovative product offerings.
- External Customers and Internal Clients: The tiered subscription model caters to the diverse needs of customers, offering a range of options based on their preferences and spending habits.
- Competitors: By embracing data analytics and strategic partnerships, MoviePass can differentiate itself from competitors and create a unique value proposition.
- Attractiveness: The tiered subscription model, coupled with data-driven targeting, has the potential to generate sustainable revenue streams and achieve profitability.
6. Conclusion
MoviePass's initial success was driven by its disruptive innovation and aggressive pricing strategy. However, this unsustainable approach led to its downfall. By restructuring its business model, embracing data analytics, and focusing on a more strategic approach, MoviePass can potentially achieve long-term viability and become a sustainable player in the evolving entertainment industry.
7. Discussion
Other alternatives not selected include:
- Continuing the current model: This is not recommended due to its inherent unsustainability.
- Selling the company: This could be a viable option, but it would require a buyer willing to invest in a turnaround strategy.
The key risks associated with the recommended approach include:
- Competition: The market is highly competitive, and new entrants could emerge.
- Customer adoption: Customers may not be receptive to the tiered subscription model.
- Data privacy concerns: The use of data analytics could raise privacy concerns.
8. Next Steps
To implement the recommended strategy, MoviePass should follow these steps:
- Phase 1 (0-6 months): Conduct a comprehensive market analysis, develop a tiered subscription model, and finalize data analytics strategies.
- Phase 2 (6-12 months): Launch the tiered subscription model, implement data-driven pricing and targeting, and establish strategic partnerships.
- Phase 3 (12-18 months): Monitor performance, refine strategies based on data insights, and expand into new markets.
By taking these steps, MoviePass can transform itself from a disruptive force to a sustainable and profitable player in the evolving entertainment industry.
Hire an expert to write custom solution for HBR Strategy case study - MoviePass
- Movie Rental Business Blockbuster Netflix Redbox Case Study Solution
- Blockbuster Video Case Study Solution
- Amc Entertainment Creating Spectacular Moviegoing Experience Case Study Solution
- Cineplex Entertainment Loyalty Program Case Study Solution
- Hollywood Rules Case Study Solution
- Netflix Inc Disruptor Faces Disruption Case Study Solution
- Netflix Building House Cards Case Study Solution
- Netflix Customer Strikes Back Case Study Solution
- Bed Bath Beyond New Strategy Drive Shareholder Value Case Study Solution
- Glitz Investments Predicting Blockbuster Case Study Solution
- Videostreaming Wars Can Disney Catch Netflix Case Study Solution
- Disney Delivering Content Ways Case Study Solution
Case Description
Mitch Lowe, the CEO of MoviePass, was having trouble convincing people of the viability of the company's business model. The company was building a multi-sided platform, and was planning to extract value from increasing traffic to movie theaters through a number of mechanisms. It also appeared to making assumptions around its flat-rate pricing model. By making some assumptions, this case affords an opportunity for students to practice with discovery-driven planning.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Write my custom case study solution for Harvard HBR case - MoviePass
Hire an expert to write custom solution for HBR Strategy case study - MoviePass
MoviePass FAQ
What are the qualifications of the writers handling the "MoviePass" case study?
Our writers hold advanced degrees in their respective fields, including MBAs and PhDs from top universities. They have extensive experience in writing and analyzing complex case studies such as " MoviePass ", ensuring high-quality, academically rigorous solutions.
How do you ensure confidentiality and security in handling client information?
We prioritize confidentiality by using secure data encryption, access controls, and strict privacy policies. Apart from an email, we don't collect any information from the client. So there is almost zero risk of breach at our end. Our financial transactions are done by Paypal on their website so all your information is very secure.
What is Fern Fort Univeristy's process for quality control and proofreading in case study solutions?
The MoviePass case study solution undergoes a rigorous quality control process, including multiple rounds of proofreading and editing by experts. We ensure that the content is accurate, well-structured, and free from errors before delivery.
Where can I find free case studies solution for Harvard HBR Strategy Case Studies?
At Fern Fort University provides free case studies solutions for a variety of Harvard HBR case studies. The free solutions are written to build "Wikipedia of case studies on internet". Custom solution services are written based on specific requirements. If free solution helps you with your task then feel free to donate a cup of coffee.
I’m looking for Harvard Business Case Studies Solution for MoviePass. Where can I get it?
You can find the case study solution of the HBR case study "MoviePass" at Fern Fort University.
Can I Buy Case Study Solution for MoviePass & Seek Case Study Help at Fern Fort University?
Yes, you can order your custom case study solution for the Harvard business case - "MoviePass" at Fern Fort University. You can get a comprehensive solution tailored to your requirements.
Can I hire someone only to analyze my MoviePass solution? I have written it, and I want an expert to go through it.
🎓 Struggling with term papers, essays, or Harvard case studies? Look no further! Fern Fort University offers top-quality, custom-written solutions tailored to your needs. Boost your grades and save time with expertly crafted content. Order now and experience academic excellence! 🌟📚 #MBA #HarvardCaseStudies #CustomEssays #AcademicSuccess #StudySmart Pay an expert to write my HBR study solution for the case study - MoviePass
Where can I find a case analysis for Harvard Business School or HBR Cases?
You can find the case study solution of the HBR case study "MoviePass" at Fern Fort University.
Which are some of the all-time best Harvard Review Case Studies?
Some of our all time favorite case studies are -
Can I Pay Someone To Solve My Case Study - "MoviePass"?
Yes, you can pay experts at Fern Fort University to write a custom case study solution that meets all your professional and academic needs.
Do I have to upload case material for the case study MoviePass to buy a custom case study solution?
We recommend to upload your case study because Harvard HBR case studies are updated regularly. So for custom solutions it helps to refer to the same document. The uploading of specific case materials for MoviePass ensures that the custom solution is aligned precisely with your needs. This helps our experts to deliver the most accurate, latest, and relevant solution.
What is a Case Research Method? How can it be applied to the MoviePass case study?
The Case Research Method involves in-depth analysis of a situation, identifying key issues, and proposing strategic solutions. For "MoviePass" case study, this method would be applied by examining the case’s context, challenges, and opportunities to provide a robust solution that aligns with academic rigor.
"I’m Seeking Help with Case Studies,” How can Fern Fort University help me with my case study assignments?
Fern Fort University offers comprehensive case study solutions, including writing, analysis, and consulting services. Whether you need help with strategy formulation, problem-solving, or academic compliance, their experts are equipped to assist with your assignments.
Achieve academic excellence with Fern Fort University! 🌟 We offer custom essays, term papers, and Harvard HBR business case studies solutions crafted by top-tier experts. Experience tailored solutions, uncompromised quality, and timely delivery. Elevate your academic performance with our trusted and confidential services. Visit Fern Fort University today! #AcademicSuccess #CustomEssays #MBA #CaseStudies
How do you handle tight deadlines for case study solutions?
We are adept at managing tight deadlines by allocating sufficient resources and prioritizing urgent projects. Our team works efficiently without compromising quality, ensuring that even last-minute requests are delivered on time
What if I need revisions or edits after receiving the case study solution?
We offer free revisions to ensure complete client satisfaction. If any adjustments are needed, our team will work closely with you to refine the solution until it meets your expectations.
How do you ensure that the case study solution is plagiarism-free?
All our case study solutions are crafted from scratch and thoroughly checked using advanced plagiarism detection software. We guarantee 100% originality in every solution delivered
How do you handle references and citations in the case study solutions?
We follow strict academic standards for references and citations, ensuring that all sources are properly credited according to the required citation style (APA, MLA, Chicago, etc.).