Independant choice Flicks 2.3 Competition and buying Patterns Currently in Ann Arbor there are two different types of competitors 1. The industry gorillas: This refers to Hollywood video and Blockbuster. For all intent and purposes these two are indistinguishable. Both are large and very corporate in the sense that every store is the same, just like a McDonalds. Both stores compete on location, there is little that differentiates them One guarantees that new releases will always by in stock but you only get them for a two day rental. the other does not guarantee them in stock but you get them for five days. For the gorillas, they concentrate the most energy on the new releases this is what their customers seem to want 2. Local video rentals: These stores are small, locally-owned companies that typically cater to a neighborhood. Generally, they do not specialize in any one thing they usually have a wide range of offerings and the bulk of their customers live within blocks of the store. Ann Arbor has several of these People make video rental decisions based on a few factors, typically selection and convenience. If hey want selection of the latest and most popular movies they go to the gorillas. If they do not rent movies that often and are more interested in convenience then they might visit the local video store 2.4 Services ICF will provide Ann Arbor with an alternative movie rental store, a service that is not yet offered in Ann Arbor. The current offerings of typical rental stores are based on popular, commercial releases. There is a market for alternative releases evidenced by the popularity of the monarch Arts Cinema which shows this exact genre of movies in a first run movie theatre format. In essence, ICF will be the home extension of the monarch 2.5 Keys to Success Creative selection Passionate employees Professionalism Customer centric business model 2.6 Critical issues ICF is still in the speculative stages as a retail establishment. Its critical issues are to continue to take a moderate fiscal approach; expand not for the sake of expansion but because it makes fiscal2.3 Competition and Buying Patterns Currently in Ann Arbor there are two different types of competitors: 1. The industry gorillas: This refers to Hollywood Video and Blockbuster. For all intent and purposes these two are indistinguishable. Both are large and very corporate in the sense that every store is the same, just like a McDonalds. Both stores compete on location, there is little that differentiates them. One guarantees that new releases will always by in stock, but you only get them for a two day rental. The other does not guarantee them in stock, but you get them for five days. For the gorillas, they concentrate the most energy on the new releases, this is what their customers seem to want. 2. Local video rentals: These stores are small, locally-owned companies that typically cater to a neighborhood. Generally, they do not specialize in any one thing, they usually have a wide range of offerings and the bulk of their customers live within blocks of the store. Ann Arbor has several of these. People make video rental decisions based on a few factors, typically selection and convenience. If they want selection of the latest and most popular movies they go to the gorillas. If they do not rent movies that often and are more interested in convenience then they might visit the local video store. 2.4 Services ICF will provide Ann Arbor with an alternative movie rental store, a service that is not yet offered in Ann Arbor. The current offerings of typical rental stores are based on popular, commercial releases. There is a market for alternative releases, evidenced by the popularity of the Monarch Arts Cinema which shows this exact genre of movies in a first run movie theatre format. In essence, ICF will be the home extension of the Monarch. 2.5 Keys to Success • Creative selection. • Passionate employees. • Professionalism. • Customer centric business model. 2.6 Critical Issues ICF is still in the speculative stages as a retail establishment. Its critical issues are to continue to take a moderate fiscal approach; expand not for the sake of expansion but because it makes fiscal sense to. Independant Choice Flicks Page 6