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Wednesdays at Cinemex
In April 2001, Matt Heyman, co-founder of Cinemex, the largest chain of movie theaters
in Mexico City, looked out the window of his office and pondered the future of his
company. In just seven years, Heyman and his partners had nurtured Cinemex from a
student idea into the largest theater chain in Mexico City, but they faced new challenges
every day. Many of these challenges came from competitors. For years competitors ran
old, poorly-maintained theaters, but in recent months they had begun to imitate
Cinemex’s top-of-the-line exhibition venues. Their latest tactic: offering two tickets for
the price of one on Wednesdays. Heyman wondered whether Cinemex should offer a
similar deal, or instead rely on the Cinemex brand and hold the line on price.