Demographic Forces

Opportunity

Demographic forces pose opportunities to the company. From the angle of location, certain places do not have cinema such as Kampar, Teluk Intan and Kuala Kangsar, thus this is an opportunity for TGV to set up new branches in these places.

From the angle of races, Malaysia is a multiracial country. Therefore, there are a lots of festivals throughout the year. This is an opportunities for TGV to introduce festival-related movies. For instance, TGV can introduce the movies that are related to Chinese New Year during the festival.

In addition, technology today becomes more advance. TGV can provide more realistic cinema-going experiences by improving the sound and projection system.

The trend of many youngsters likes to get out of the house and stick with their friends creates an opportunity to TGV. This is due to the trend provides greater demand for social support product such as movie.

Threat

Existence of competitors poses threat to TGV. There are a few companies compete with TGV in film exhibition industry such as Cathay Cineplex, MBO Cinemas, Golden Screen Cinemas( GSC) and Star Cineplex. GSC is the main competitor of TGV because before TGV was established, GSC already exists in the market and has more branches than TGV.

Our country is currently facing economy recession. This affects consumer buying power and spending patterns. Lesser people will spend money on watch movie in cinema because this activity is considered as luxury at that moment. Only customers from upper class will not be affected by economic recession.

Recently, the numbers of quality movies produced by Hollywood and Hong Kong are getting lesser and lesser. This will definitely leave an impact on ticket sales.

In addition, certain state governments such as Kelantan banned cinema activities in their state because they assume that cinema is against Islamic rules. Kelantan government believes cinema will lead to social problems.

Besides, government policy that filters out certain parts of the movie that contain aggressive, pornographic scene poses threat to ticket sales. Government's action affects the fluency and flowing of the movie, thus reduces the interesting part of the movie. This causes many customers stay away from cinema.