Ima Corporation Swot Analysis
Case introduction and background[1]
The IMAX corporation has been at the forefront of groundbreaking movie technology since the 1960s. Their expertise in multi-screen, large-format filmmaking that creates an immersive experience has suffered relatively few competitors over the years. Distinctive brand identity has added to IMAX’s market differentiation. Initially, IMAX opened theatres in institutions such as museums and aquariums, and created documentary style films with high educational value. This has given IMAX a strong image as a trusted provider of quality “edutainment” movies suitable for family audiences.
Much of IMAX’s business relies not on the production and screening of their signature movies, but on the sale of their patented equipment. In order to remain leaders in large-format movie technology, IMAX invests heavily in research and development (R&D). Between 2004 and 2007, the company spent over $12.6 million in R&D, in addition to receiving related funding grants from the Ontario government. Recent technological developments include 3D filming technology, 3D directional sound, and digital cameras and projectors. IMAX has traditionally sold their equipment directly to theatres, and provided necessary servicing. Recent agreements with theatre chains require IMAX to pay for system installation. In return, IMAX receives a cut of box-office revenue from screenings of reformatted IMAX films.
Despite its favourable reputation and considerable technological achievements, IMAX has experienced financial difficulties since the late 1990s. During the theatre overbuilding crisis of the 1990s, many commercial theatres screening IMAX format films filed for bankruptcy. Unable to collect receivables from failed theatres, IMAX plunged deeply into debt. Their credit rating suffered and was considerably downgraded. IMAX did take measures to reduce their debt load, but have yet to dig themselves out completely. Additionally, developments of
The IMAX corporation has been at the forefront of groundbreaking movie technology since the 1960s. Their expertise in multi-screen, large-format filmmaking that creates an immersive experience has suffered relatively few competitors over the years. Distinctive brand identity has added to IMAX’s market differentiation. Initially, IMAX opened theatres in institutions such as museums and aquariums, and created documentary style films with high educational value. This has given IMAX a strong image as a trusted provider of quality “edutainment” movies suitable for family audiences.
Much of IMAX’s business relies not on the production and screening of their signature movies, but on the sale of their patented equipment. In order to remain leaders in large-format movie technology, IMAX invests heavily in research and development (R&D). Between 2004 and 2007, the company spent over $12.6 million in R&D, in addition to receiving related funding grants from the Ontario government. Recent technological developments include 3D filming technology, 3D directional sound, and digital cameras and projectors. IMAX has traditionally sold their equipment directly to theatres, and provided necessary servicing. Recent agreements with theatre chains require IMAX to pay for system installation. In return, IMAX receives a cut of box-office revenue from screenings of reformatted IMAX films.
Despite its favourable reputation and considerable technological achievements, IMAX has experienced financial difficulties since the late 1990s. During the theatre overbuilding crisis of the 1990s, many commercial theatres screening IMAX format films filed for bankruptcy. Unable to collect receivables from failed theatres, IMAX plunged deeply into debt. Their credit rating suffered and was considerably downgraded. IMAX did take measures to reduce their debt load, but have yet to dig themselves out completely. Additionally, developments of