The global presence of the AMC was the driving factor in the acquisition of the process. It was observed that the acquisition process would be beneficial for Wanda’s global cinema presence to reach in 20% of the world movie theatres by the year 2020 (Cesarani 2014). It was further stated by the CEO of AMC Mr. Lopez stated that both the industries were dedicated in providing a continuous support to the customers and a premier experience to its customers. It was further observed that both the companies were involved in providing an augmented support for the amenities and the state of art facilities to the share corporate are seen as the major motivating factors for the overall innovation process (Vagadia 2012). It was further stated by the CEO of AMC Mr. Lopez that the joint collaboration for both the company would be able to significantly contribution to the expansion process of both the companies and keeping the “cost” factor to a lower level of Yip model of the globalization factor (Nordensvärd 2013).
The main factor in terms of Yip’s “competitive” driver was seen in form of Wanda benefitting in the expertise of the home market of the AMC operating on a market five times of the Chinese annual box office sales. The reputable brand of AMC would further provide the necessary amenities to Wanda Cinema Line Corp. in maintain a reputable brand among the entertainment industries (Robertson 2012). As per the expansion program formulated by the YIP, the deals main driving factors was also seen in form of the expansion of the industry in form of the major expansion programs. Hence as per the policies framed in the program it was evident that the deal will be able to bring about major amount of the changes in terms of the taking over of 100% stake in AMC and bearing of the debts and making of the further investment opportunities with $ 500 at AMC. Hence, the acquisition of the major amount of the stake in the AMC is seen as the main factor behind the overall acquisition process (Nordensvärd 2013). As per the given case study, it has been further observed that AMC is considered as the second biggest cinema chain in the Northern America and has the highest ticket sales with, with sales of the ticket amounting to more than $ 10 billion. As AMC owns more than 5000, screen and has presence in more than 346 movie theatres, is another contributing factor to the acquisition process. It was further observed that AMC also owned several 3D screens such as IMAX (Vagadia 2012). It was further observed that although the deal was smaller in terms of the rest of the availability of the property at Dalian Wanda Group Corp. Ltd, which includes assets of over $35 billion. Mr Wang Jianlin, the Founder, Chairman and President of Dalian Wanda has significant amount of knowledge in tackling political situation and acquisition of local property. This is directly related to the industry globalisation factor of Government. This will be in turn helpful in US entry in contributing to the licensing and distributing of the properties in the US market.
Cesarani, M., 2014. Competitive Dimension of Outsourcing Relations in Global Networks. Journal of Management, 2(4), pp.97-112.
Vagadia, B., 2012. Globalisation and Convergence: Drivers and Strategic Outsourcing. In Strategic Outsourcing (pp. 7-19). Springer Berlin Heidelberg.
Nordensvärd, J., 2013. The weak human and the saving grace of the welfare state: German pupils’ perception of future social change and drivers of change. Futures, 49, pp.22-34.
Robertson, R., 2012. Globalisation or glocalisation?. Journal of International Communication, 18(2), pp.191-208.