Cinépolis S.A. de C.V. and KLIC: Rising to the Streaming Challenge
(7 pages of text)
AWARD-WINNING CASE - Latin American Business Cases Category, 2019 European Foundation for Management Development (EFMD) Case Writing Competition. Cinépolis S.A. de C.V. (Cinépolis), an innovative private Mexican firm—and one of the largest movie theatre companies in the world—had developed an over-the-top (OTT) streaming product, KLIC, and launched it in Mexico. But by late 2017, the Mexican OTT market had become competitive and crowded, with Netflix, Claro Video, Blim, Amazon Prime Video, iTunes, and others in the space. KLIC initially faced challenges with finding a proper niche and had not yet achieved profitability. Cinépolis wanted to make the product successful and hoped that interesting synergies between its movie theatre business and the new streaming unit could be found.
This case can be used in an undergraduate-level marketing or strategy course. Working through the case and assignment questions will give students the opportunity to do the following:
- Understand the importance of finding a niche in a new market, especially when competing as a new entrant against established giants.
- Consider the basic pros and cons of vertical integration in the content-delivery market.
- Develop an awareness of both the difficulties with and the opportunities for brand extension.
- Develop an awareness of how customer expectations can make product differentiation difficult.
Information, Media & Telecommunications
Mexico, Large, 2017
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