A strategic analysis of a service company in the film and television industry in Canada

EP Canada Limited Partnership, a wholly owned subsidiary of Rainmaker Income Fund, is the leading ‘full service’ provider of payroll and employer-of-record services to the film and television industry in Canada. The size of the payroll volume outsourced in the film and television industry in Canada is directly correlated to the level of production activity in Canada. After several consecutive years of growth, the production of feature films and television programs, in Canada, is in decline. The strength of the Canadian dollar, in comparison with the US dollar, and tax credit competition from filming locations worldwide is contributing to the decline. The purpose of this paper is to analyze the current competitive advantage and business operations and make recommendations to help EP Canada Limited Partnership diversify its business in accordance with parent company objectives and better manage employee turnover.