Changed Economy Example: AMC Movies

This article from the New York Times is a great example of the blurring lines of industries and the forces driving whole scale change in industries.   AMC, a movie chain, has recently hired a CEO from Starwood (hotels) to run its business and now will begin thinking more like a restaurant.   As obvious as these changes seem to us are consumers of AMC’s service (I myself much prefer to wait for movies to come out so I can watch them at home with my kids), imagine how radical they are for people who have always been in the theater business?   Imagine how hard it was to get buy-in from the board of directors to invest $700M in theater upgrades to implement the strategy.    Think about the outcome wheel and what all must be going on behind the scenes.   Also, what type of business is AMC now?   Are they not competing against:  cable and satellite businesses?   HBO, Showtime, Starz?  Restaurants?   Bars?  Mobile devices?


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