JAZZMANB
Striker
Game and Hmv became slow victims of a change in how we bought that product ie online business they didnt struggle because other shops were better.The very first move a business should be considering is its profit margin, and working from there.
Many businesses facing competition from new media or models, as with the cinema, however begin with maintaining how much they pay themselves at the top to to begin with, and then scrape around and put together whatever shitty service they can provide at the lower levels.
That's exactly what happened with the likes of Game, HMV et al. Pretend competition doesn't exist, charge a premium like they always did in spite of the fact that the competition can provide it far cheaper, continue to award yourself a massive salary, and make up the shortfall in cutting staff and quality lower down. That would appear to be exactly the same rulebook cinemas like this are taking pages from, despite the rise of Netflix etc.
I take it your 1st paragraph is an example of a bad business because no right minded manager at any level would combat new competition with a worse customer experience?Most middle and top management live in a culture of do well or you're on your way with nothing thought of replacing you at any point.So looking after number 1 and letting the business suffer will come back around very quickly