PVR Limited at a crossroads

Abstract

Learning outcomes The case study “PVR Limited at a Crossroads” has been designed with the requirements of strategic management. The learning objectives are as follows: • Situational analysis – understand the global and Indian media and entertainment industry PESTEL. • Strategic planning – internal and external environmental analysis – strength, weakness, opportunities and threats (SWOT) analysis helps in achieving the strategic plan. • Strategy development – to accomplish the turnaround plan, various alternatives are developed; choosing from the possible alternatives is a part of strategic planning. Case overview/synopsis PVR Limited (PVR) is the largest premium film exhibition company in India. In their annual report for 2019–2020, Chief Executive Officer Gautam Dutta acknowledged, “It was the first time in our more than two-decade history that we witnessed over 100 million patrons entering our premises in a year”. However, with the onset of Covid-19 pandemic in January 2020, things changed for the entertainment industry in India. There were fears of an eminent third wave and the detection of a new Covid-19 variant, Omicron, added to these fears. Being a major player in the game, PVR felt the impact. And even when the business started to reopen, social distancing remained a concern and ticket sales were impacted. Over-the-top viewership rose dramatically at the cost of the multiplex. The lockdown halted film productions worldwide, leading to a shortage of content. Other revenue streams, such as food and beverage, convenience fees and advertising, also came to a halt. Given the circumstances, Dutta was facing the twin dilemma of how to bring customers back to cinema in a post-pandemic world without in any way compromising the security of its patrons and keeping costs under control while investing in social distancing, safety measures and entertainment infrastructure to enhance the cinematic experience. Complexity academic level This case was written for use in Strategic Management classes at the undergraduate and MBA levels. It can be used in both management studies and executive development programs. It is suitable for courses on strategic management and strategic planning focusing on a turnaround strategy. Additionally, the case could be used in consumer behaviour courses in management as the focus of the case is well aligned with discussions related to change in consumer behaviour. Supplementary materials Teaching notes are available for educators only. Subject code CSS 11: Strategy.