Strategic Management Essay Imax's
Subject: Strategic Management Source: Strategic Management Essay: IMAX Richard | October 20, 2011 Name: Tarek Abdel Salam Yousef
1.
Introduction
Adrian Haberberg and Alison Rieple (2008) define strategy as a set of intentional or inadvertent set of actions through which an organization develops the required set of resources, efficiently targets valuable customers, meets financial targets and competes effectively. These strategic decisions drive the long -term direction of the organization, the scope of its activities, help gain advantage over competitors, and address changes in the business environment.
The case of IMAX begins in 1994 when business partners Gelfond and Wechsler decided to purchase the organization from its original owners and take the company public. IMAX operates in a people oriented business, operating within the entertainment industry. Through the years the owners have made strategic efforts in the direction of reaching new audiences. 2. IMAX’s business environment Michael Porter (1979) have developed several frameworks for understanding and analyzing the effect that an organization’s external environment could have on its competitiveness and profitability. These frameworks identify the following as notable forces: Threat of new entrants; Threat of substitutes; bargaining power of suppliers; Bargaining power of buyers; and Intensity of rivals. This model has updated by Haberberg and Rieple (2008) to include Complementary forces, identifying industries that indirectly affect one another. Applying these 6 forces to IMAX, it becomes evident that the greatest threat to new entrants is the high capital investment and technical knowhow required to enter into the equipment distribution industry. Also, with respect to distribution channels, IMAX has been able to establish partnerships with cinemas globally (Firn and Alpeyev, 2010; MarketWatch, 2010) to showcase its films. In addition IMAX has either partly or fully owns (e.g. David Keighley
1.
Introduction
Adrian Haberberg and Alison Rieple (2008) define strategy as a set of intentional or inadvertent set of actions through which an organization develops the required set of resources, efficiently targets valuable customers, meets financial targets and competes effectively. These strategic decisions drive the long -term direction of the organization, the scope of its activities, help gain advantage over competitors, and address changes in the business environment.
The case of IMAX begins in 1994 when business partners Gelfond and Wechsler decided to purchase the organization from its original owners and take the company public. IMAX operates in a people oriented business, operating within the entertainment industry. Through the years the owners have made strategic efforts in the direction of reaching new audiences. 2. IMAX’s business environment Michael Porter (1979) have developed several frameworks for understanding and analyzing the effect that an organization’s external environment could have on its competitiveness and profitability. These frameworks identify the following as notable forces: Threat of new entrants; Threat of substitutes; bargaining power of suppliers; Bargaining power of buyers; and Intensity of rivals. This model has updated by Haberberg and Rieple (2008) to include Complementary forces, identifying industries that indirectly affect one another. Applying these 6 forces to IMAX, it becomes evident that the greatest threat to new entrants is the high capital investment and technical knowhow required to enter into the equipment distribution industry. Also, with respect to distribution channels, IMAX has been able to establish partnerships with cinemas globally (Firn and Alpeyev, 2010; MarketWatch, 2010) to showcase its films. In addition IMAX has either partly or fully owns (e.g. David Keighley