This analysis lays out the basic concepts, key issues, Internal, and external analysis. It also includes my strategic recommendations on the possible direction that could be taken based on the case study. Basic Concepts
The IMAX strategy is two pronged. The 1st prong is to expand beyond institutional environments by opening IMAX theatres within multiplexes or convert existing multiplex screens. 2nd the launch of more Hollywood films in IMAX format. Key Issues
1.) Could IMAX thrive as a niche player that made large format films and systems? 2.) Would increasing the number of Hollywood movies released to IMAX format save the firm or just dilute the IMAX brand? 3.) Should Hollywood movies be releases simultaneously with traditional theatre releases? Internal Analysis
As of September 30, 2010, there were 470 IMAX theatres (348 commercial, 122 institutional) in 45 countries. IMAX theatres are located in commercial multiplexes as well as some of the most prestigious educational institutions and destination entertainment centers around the globe. Some of the products offered by IMAX are cameras, projectors, audio equipment, 3D conversions, clip licensing, and film production and distribution. Since the 1st movie release in 1970 in Japan, there have been some critical successes that factor to maintain IMAX to its current stability and market status. After being purchased in 1994 for $ 100 million and becoming publicly traded on NASDAQ later that year the financial roller coaster began. The market value for IMAX in 1997 was $ 196 million and then in 2008 it had plummeted to $125 million. This down turn can be understood a little more by looking at the revenue breakdown. The main revenue came from theatre system leases and maintenance agreements, film production and distribution, and theatre operations. All of the categories look like a great way to maintain a diversified income for the company, but we have to take into consideration the “Great...
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