The following appeared as part of a business plan developed by the manager of the Rialto Theater.

“Despite its downtown location, the Rialto Movie Theater, a local institution for five decades, must make big changes or close its doors forever. It should follow the example of the new Apex Theater in the mall outside of town. When the Apex opened last year, it featured a video arcade, plush carpeting and seats, and a state-of-the-art sound system. Furthermore, in a recent survey, over 85 percent of respondents reported that the high price of newly released movies prevents them from going to the movies more than five times per year. Thus, if the Rialto intends to hold on to its share of a decreasing pool of moviegoers, it must offer the same features as Apex.”

The manager of Rialto Movie Theater expresses a mandatory need to either make big changes in the theater or to shut it down forever, as a part of a business plan. In addition, he strongly recommends bringing changes in the theater as is done by the newly opened Apex Theater in the mall outside the town.

The argument however appears to be full of flaws from start to end. First of all, there is no substantial reason given by the manager for either making changes or closing the theater for good. The reason for giving such a statement itself is not clear. The measures suggested can be taken up in case the business of Rialto Theatre is incurring financial loss as compared to the previous years or in comparison to other theaters. However, no such point is mentioned by the manager.

Further, there are no details of feedback from the common people over the preference of theater. No dissatisfaction over the present setup of Rialto Theater is expressed by the moviegoers. Not only this, but also there is no favoritism shown towards Apex Theater for its grand interiors and a state-of-the-art sound system. This rejects any need to imitate Apex Theater in terms of its video arcade, plush carpeting and seats etc.

Moreover, such changes made will only add up to the expense of the owners and will most likely end up burdening the movie goers by hike in ticket prices. This will lead to a decrease in the number of people going to Rialto Theater. Subsequently, instead of increasing the returns, these changes may result in financial loss. By raising the price of tickets and emulating the newly built Apex Theater, there is also a risk of Rialto Theater losing its popularity, earned in five decades.

Reports from the recent survey conducted suggest that eighty five percent of respondents are prevented from going frequently to the theaters due to high price of tickets of newly released movies. This indicates a general decline in the number of moviegoers. Moreover, one can not really point out if Apex Theater is running more successfully, as there is no information about the theater drawing more crowds. Similarly, the likelihood of Rialto Theater being visited more frequently can not be ruled out.

More significantly, Rialto Theater has the advantage of its location and a sound history. It is situated in the city center for almost about five decades. There is a strong probability of Apex Theater being at a disadvantage, as it is situated in a mall outside the town. This may be the reason behind its lavish interior decors in order to attract more crowds. Making the most of the privilege of its suitable location, Rialto Theater should lookout for other modes to attract moviegoers, instead of aping the other theaters and spending unnecessarily.

Conclusively, the argument given by the manager to bring about drastic changes in Rialto Theater is not acceptable due to lack of any sound reasoning.