larger than life IMAX
1. Discuss IMAX’s business level strategy to date and proposed changes. (10 points)
Products differentiation
The large format movie system gives customers unique visual and audio movie watching experience that cannot be found in conventional movie theaters. IMAX is also differentiated by its library of films and locations. IMAX located itself in institutional environment and commercial multiplexes to target wider audiences include family, students, and tourists at different time during the day by screening its own movies and other studios’ movies. Speaking of the technologies, IMAX films printed on larger films, which require special designed camera, projector, and screen to display the IMAX features.
Cost leadership.
The company heavily invests financial and human resources in their R&D, because the technologies developed would lower the costs of producing and distributing films significantly. The newer service agreements and partnership with theater owners allow IMAX lower its capital requirements when new IMAX screens were opened in the traditional multiplexes. IMAX not only saves money on films making because they don’t have to pay a lots of money to the major stars as the Hollywood does, but also save money on the marketing. IMAX increased the number of Hollywood movies in order to ride on the coat- tails of marketing campaigns launched by the studios.
The proposed expanding strategies will bring more audience to IMAX, and save more production and distribution costs. By opening new IMAX screen in commercial multiplexes will give customers easy access to IMAX movie, and allow IMAX gain more market share, and increase box ticket revenue. Although the initial system installation and movie converting costs are big, over long term IMAX can achieve economies of scale by utilizing the IMAX system installed in traditional theaters.
2. Conduct an external analysis. (25 points)
a). PESTEL framework
Political factors
Concerns about violence, sex, and vulgar language
Products differentiation
The large format movie system gives customers unique visual and audio movie watching experience that cannot be found in conventional movie theaters. IMAX is also differentiated by its library of films and locations. IMAX located itself in institutional environment and commercial multiplexes to target wider audiences include family, students, and tourists at different time during the day by screening its own movies and other studios’ movies. Speaking of the technologies, IMAX films printed on larger films, which require special designed camera, projector, and screen to display the IMAX features.
Cost leadership.
The company heavily invests financial and human resources in their R&D, because the technologies developed would lower the costs of producing and distributing films significantly. The newer service agreements and partnership with theater owners allow IMAX lower its capital requirements when new IMAX screens were opened in the traditional multiplexes. IMAX not only saves money on films making because they don’t have to pay a lots of money to the major stars as the Hollywood does, but also save money on the marketing. IMAX increased the number of Hollywood movies in order to ride on the coat- tails of marketing campaigns launched by the studios.
The proposed expanding strategies will bring more audience to IMAX, and save more production and distribution costs. By opening new IMAX screen in commercial multiplexes will give customers easy access to IMAX movie, and allow IMAX gain more market share, and increase box ticket revenue. Although the initial system installation and movie converting costs are big, over long term IMAX can achieve economies of scale by utilizing the IMAX system installed in traditional theaters.
2. Conduct an external analysis. (25 points)
a). PESTEL framework
Political factors
Concerns about violence, sex, and vulgar language