SWOT ANALYSIS

1. STRENGTH:
 First mover advantage in multiplex business in India
 Develop and operate state-of-the-art multiplexes to create superior quality ambiance
 Usage of technologically updated systems like Dolby stereo sound system, Digital
Cinema technology, Xenon technology etc.
 Gained exclusive rights to screen blockbusters from major distributors mainly Warner
brothers, 20th century fox etc.
 Largest multiplex operators in the world with more than 1500 screens under operation
 Very strong brand equity and Blend of retail and entertainment

2. WEAKNESS:
 Ticket sales at higher prices
 Customer retention over longer terms
 Parking problems
 Lack of customer feedback for improvement of services
3. OPPORTUNITIES:
 Extend relationship with village road shows
 Growing family spending on entertainment
 Large film industry with more than 200 films released each year
 More offers to retain PVR Loyalists

 Venture into business of film distribution

4. THREATS:
 Blooming competition from similar multiplexes
 Government’s interference with entertainment tax
 Consumer resorting to other ways of entertainment
 Piracy and economic slowdown may affect industry

PESTLE ANALYSIS
POLITICAL FACTORS
 Delhi Government allowed the theatres to follow flexible pricing, which resulted in
fixing different prices during weekdays and weekends.
 The Government amended the Import policy, allowing the theatres to screen the latest
Hollywood films within a week, which earlier took years.

ECONOMICAL FACTORS
 Increase in the disposable income of the general public led to an increase in moviegoers.
 Revenue to Government increased due to tax collected from the multiplex, as
entertainment tax was imposed on them.

SOCIAL FACTORS
 Changing lifestyles of people made movie going fashionable.
 Improved standard of living led to accepting the price hikes.
 Westernization helped to change the perception of multiplexes and accepting western
foods offered in theatres.

TECHNOLOGICAL FACTORS
 The changes in the technology from single screen to multiple screen projection have
significant effect on Anupum PVR.
 The new sound systems like DOLBY ATMOS are forcing ANUPUM PVR to adapt.
 The new projection techniques have triggered Anupum PVR to go with it in order to
establish a core-competency over its competitors.

LEGAL FACTORS
 Complaints were filed by local residents but there was no response.
 There were complaints about robbery due to weak security system.
 Anti-piracy rights should have been strictly taken care as people still steal the movies.

ENVIRONMENTAL FACTORS
 Noise pollution was caused due to constant movies and traffic which were causing
disturbance to the local residents.
 Air pollution due to large number vehicles getting parked in and around PVR.
 They could have come up with paperless tickets.
 Lot of eatables and drinks were introduced with plastic packaging.
Factors inhibiting sustainable growth for Anupum PVR complex

The Compound Annual Growth Rate (CAGR) in revenues of PVR between 2001 and 2005
was 35%. The unconsolidated total income was Rs. 706.66 million and Rs. 805.9 million in
fiscal 2005 and for the nine-month period ended December 31 2005, respectively. Around 4.8
million movie goers visited PVR multiplexes in 2004-05, and an occupancy rate of 41.1% was
registered (Refer Exhibit VIII for Performance Indicators for PVR Ltd.).Though these figures
were impressive, the impending competition had the potential to spoil the party for PVR. The
urban population in India in the age group 15-34, the most frequent movie-goers in the country,
was expected to grow from 107 million in 2001 to 138 million in 2011.Moreover, the retail
boom in the country coupled with increasing disposable income among the ever-expanding
Indian middle class was expected to fuel the growth of multiplexes all across the country. In
2005, the number of footfalls at multiplexes increased by 40-50% over the previous year
indicating the growth in the business.