Achieving a Sustainable Service Advantage

Abstract

Forbes magazine had dubbed Carmike Cinemas “the Wal‐Mart of theater chains.” Founded in 1982, the Columbus GA‐based chain of 1,400 screens pursues a strategy strikingly similar to that of Wal‐Mart Stores, Inc. The company buys or builds theaters in small to mid‐sized cities (populations of 200,000 or less) where purchase prices are low and competition is scarce. This unusual approach to the movie retailing business has led to phenomenal growth and strong profitability at a time when other chains are scrambling to sell off theaters and repay debts.

Citation

Coyne, K.P. (1993), "Achieving a Sustainable Service Advantage", Journal of Business Strategy, Vol. 14 No. 1, pp. 3-10. https://doi.org/10.1108/eb039531