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Globalizing The Cost Of Capital And Capital Budgeting At Aes Pestel Analysis Case Study Help

Political/Legal Factors:

Globalizing The Cost Of Capital And Capital Budgeting At Aes Pestel Analysis Pestel Analysis Case Study HelpAs far as the political and legal factors are worried, the entire film market is affected by the hazard of piracy which might potentially produce a negative impact on the general income of the film industry. Having said that, copyright laws use security to the movie industry in terms of preventing piracy.

While the political and legal environment offers protection to movie makers, globalization and improvement of technological factors have actually increased legal challenges such as ease of piracy and violating intellectual property rights.

Economic Factors:

It must be noted that movies belong to the entertainment industry while expense on any kind of home entertainment is essentially an optional cost which is more or a high-end instead of a need. We look at the comparison of the GDP pattern with the trend in need for films, we can see that the 2 are not directly proportional suggesting that any change in GDP growth does not necessarily bring about a modification in this specific home entertainment.

Social Factors:

As far as the social-cultural elements are worried, it must be kept in mind that the 70% of IMAX audiences are in between the ages of 19 and 56 which allows a lot of diversity when it pertains to going with a specific segment. Furthermore with bulk of the viewers being college or university students with a typical family income of $70,000, the acquiring power of the target market shows possibilities of increasing viewership.

With factors such as 'parents showing an interest in their kids's option of entertainment' and 'higher purchasing power in homes' due to both moms and dads contributing towards the home income, we can see that the home entertainment company has a great deal of potential for market gamers.

Technological Factors:

While technological aspects have actually contributed towards lowering the cost of home entertainment with the intro of multimedia, truth based home entertainment, home theatres, cable television networks, the pressure on theatres has actually increased in regard to making the theatre experience richer for customers in order to make it more attractive than enjoying motion pictures in the house. Furthermore, while developments have actually contributed towards the risk of 'piracy' they have actually also contributed towards ease of storing and distributing movies.