From cinema success to distribution failure: addressing operational inefficiency at BT Group

Abstract

This thesis investigates a critical strategic paradox within BT Group where the organization achieves industry-leading operational excellence in its Exhibition division, evidenced by a 25.89% occupancy rate and 9.5% market share, yet suffers from chronic underperformance in its Distribution division, which holds only a 2% market share. Despite a booming domestic film market that grew at a CAGR of 15% from 2019 to 2024, BT’s distribution revenue has exhibited extreme volatility, collapsing from a peak of VND 25.48 billion in 2017 to near-zero levels during 2019–2021, with a sluggish recovery to VND 9.54 billion in 2024. Applying the Problem-Solving Oriented (PSO) methodology by van Aken and Berends, this research utilized a mixed-methods approach combining internal financial analysis and in-depth stakeholder interviews. The diagnosis identified the Main Problem as an "Inefficient Film Acquisition Decision-making Process." BT’s decision cycle averages 15–21 days, significantly slower than competitors’ 5–7 days. This latency is not a result of personnel incompetence but of a structural failure known as a "Capacity Mismatch" where the organization lacks the Information Processing Capacity to handle market complexity. The reliance on manual workflows and centralized CEO approval creates "Information Distortion" , leading to high forecasting errors of 60–67% MAPE and a "Trust Deficit" that systematically excludes BT from premium content opportunities. The financial consequence is an estimated annual opportunity cost of VND 84.1 billion. To resolve this crisis within the organization’s strict financial constraint of a VND 1.5 billion budget and temporal constraint of 6–9 months, this thesis recommends Solution 1: Excel-Based Statistical Forecasting & Process Standardization. Selected over a high-cost AI/CRM alternative, this solution prioritizes financial feasibility and user adoption. A detailed 6-Month Action Plan has been designed with a budget of VND 270 million, utilizing only roughly 18% of the available cap. Implementation is projected to reduce decision cycles to 9–12 days and forecast error to less than 50%. By resolving the "Information Bottleneck," this intervention serves as the foundational step to restoring market credibility and unlocking the strategic value of BT's vertical integration.