Analysis of Modern Theaters Strategy: System Dynamics and Resourced-based View

In recent 30 years, Taiwan modern theaters pop up rapidly. However, most of these theaters have encountered a lot of operating difficulties and have lacked some managerial methods to improve their situations. This research combines the system dynamics and resourced-based view to analyze the industry of modern theaters. This research also provides some penetrating insights about the industrial whole picture with system dynamics model, which helps users find out what their theater’s core competencies and core resources are. Through cultivating those competencies and resources, theaters can enjoy the competitive advantages in modern-theater industry in the long run. This research makes four conclusions, 1.System dynamics help users plan and form their strategies thoroughly. 2.Core competencies have profound impacts on the effectiveness of ads and effectiveness of word of mouth. 3.The more evocative the drama scripts are, the richer the core competency will be. 4.The effectiveness of word of mouth is worth focusing and manipulating.