Case | HBS Case Collection | 1999 (Revised from original 1997 version)

Cinemex

Abstract

The founders of Cinemex, the largest capitalized venture start-up in Mexican history, are debating several issues concerning the operations of their new chain of motion picture theatres in Mexico City. The first concerns whether some seats should be left unsold to improve customer service. The second involves limits on advertising to be shown at each presentation. Others include possible investment in an expanded ticketing service and live entertainment.

Keywords: Business Startups; Service Operations; Debates; Venture Capital; Customer Satisfaction; Advertising; Investment; Theater Entertainment; Entertainment and Recreation Industry; Mexico City;

Language: English

Format: Print

29 pages

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Citation:

Heskett, James L. "Cinemex." Harvard Business School Case 898-108, December 1999. (Revised from original November 1997 version.)

This is the fourth in a 35-year series of HBS cases on an organization that has changed the rules of the game globally for an entire industry by offering both differentiated and low-price service. The focus of the case is on whether Southwest Airlines should buy gates and slots to initiate service to New York's LaGuardia airport, which does not fit the airline's profile for cost, ease of service, and other factors. The bigger issue is how the organization should deal with competition that has successfully emulated more and more of what it does in an operating environment that has changed significantly. Hence the subtitle, which was suggested by Herb Kelleher, Southwest's Chairman and CEO, Emeritus.

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