Designed to illustrate the complexity of buyer-seller arrangements in established industries. When negotiations with the studio theater operators to show new films, the cost of a studio to make films in the main sink. In addition, costs for theaters showing films also sank. Thus, both sides exchange have high bargaining power and are vulnerable to observation. Allows students to determine the consequences for the structure of the industry. In particular, in the case highlights the recent trend of multiplexes and small screen sizes. "Hide
by Anita M. McGahan, Geoffrey Verter Source: Harvard Business School 21 pages. Publication Date: July 10, 1996. Prod. #: 797011-PDF-ENG
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