Amc - New Market Entry

AMC Entertainment-

Country Profile Report 

Team BARL:

Reina Aparicio, Erin Bulkeley, Wayne Lawton, Earnest Robinson, & Alan Trivedi

August 8, 2010

Introduction

AMC Entertainment (AMCE) is planning to expand their operations by opening a movie theatre in either Brazil or India. This expansion will be the pilot for more movie theatres to come in either one of these two countries. The first part of the planning phase is to make a decision on which country to enter into by way of research and comparison. Many vital factors and data points must be examined as part of this important decision. Our team focused on five essential factors to help AMCE make the best, most successful decision possible. Our research focused on Brazil and India’s population and people, telecommunications, the business environment, the economy, and the infrastructure. We discussed the implications of the five listed factors and how they affect AMCE decision making process.

Population and People

When looking to expand internationally, AMCE must examine and take into consideration the population of both Brazil and India. Brazil’s total population is around 200 million people (Brazil at a Glance, 2010), while there is over 1 billion people in India (Central Intelligence Agency, 2010b). From a pure numbers standpoint, AMCE in India would be able to identify the market and meet the social needs of a larger group of people (Kotler & Keller, 2009, p 2).

Brazil occupies nearly 50% of the South American continent with 81% being urban and 19% rural (Brazil at a Glance, 2010). By stark contrast, India’s urban population only makes up 29% of India. But once again, by the sheer numbers “most Indian cities are very densely populated” (Urban Life, n.d.). Both of these countries present a large business opportunity for AMC Entertainment.

Managing globally can be challenging especially with cultural differences (Dessler, 2007, p 364). AMCE is an equal opportunity employer...