1. Studio A is producing a fast-paced action movie starring three of the hottest young actors of the moment targeted at 12- to 24-year-olds at a cost of $210 million. Studio B is producing a drama set in the 1960s starring two beloved, 60-something icons of the screen targeted at the 60+ market at a cost of $107 million. Use several factors in both the industry and general environment to analyze the potential for each project. Which do you think is the better investment? 

2. Traditionally, what were theaters’ core competencies, and how were they used to provide competitive advantage over other forms of entertainment, both inside and outside the home? 

3. Describe the competitive dynamics of the movie delivery business of today. To what degree do these competitors share common markets and similar resources?