*Strategic Management: An Integrated Approch (8th edition) by Charles Hill and Gareth Jones. *Startegic Management : Creating Competitive Advantage (5th edition) by Gregory Dess, G.T Lumpkin and Alan Eisner *Strategic Management (6th edition) by John Pearce and Richard Robinsons Environmental Analysis
IMAX as a global firm interacts with multiple environments. Company takes inputs and distributes its output. Like every organization, IMAX has its internal and external environment which affects its outputs. Internal Environment
IMAX’s internal environment includes procedures and inputs which are used to achieve its strategic goal. Company had successfully developed 3D cameras and other equipment to produce nearly realistic 3D images. Images screened by IMAX are brighter and sharper than those found in conventional movie theater. The company had also invented new techniques of 3D directional sound, offering its customers audio clarity and depth. One of the main focuses of IMAX Corp. is Research and Development, as it wants to present movies using newest technological methods and systems available on the market. Quite big chunk of its revenue is redistributed towards R & D part of its business. Worth mentioning is the fact that as a part of lease, IMAX is advising its customers on theater design, supervising the installation of their systems, training entire theater staff and is maintaining the installed system. External Environment
Increase in the demand of Hollywood productions,
High popularity of watching IMAX format movies,
Joint ventures with other studios,
Opening more IMAX theatres within existing Multiplexes or converting existing multiplex screens into IMAX format, Opening up IMAX theatres in emerging developing countries (e.g. BRIC), Lack of competitors converting movies into large format,
Special significance given by Motion Picture Association of America to documentary movies segment. Threats:
Piracy of movies ,
High quality DVD’s and BluRay Disks,
Home theatre entertainment systems,
Joint partnerships (AMC with its own big screen theatres),
Change of Taste of consumers.
There are multiple external factors and forces that affect IMAX’s performance. For example customers represent potential uncertainty to the IMAX. It is due to their taste changes. Knowing that fact, IMAX should create more educational and entertainment movies and show them in full screen format. Demand for animated and technological base movies is growing and IMAX should consider merging with some larger players in the industry (e.g. Pixar) to be able to fulfill the needs of consumers. Despite the fact that IMAX had developed the knowledge, skills and capabilities to design and assemble the complicated 3D movie systems, most of the components included in the equipment were purchased from the contracted suppliers with whom IMAX had maintained long term relationships. Presently IMAX faces taugh competition from digital cable, satellite, DVDs and the internet. All these media offer customers a much broader choice than only few years ago. One should also remember about socio-cultural, political/legal, demographic and technological environments that indirectly affect the IMAX’s overall performance. Movies presented in IMAX theatres should represent the high socio-cultural content, due to the fact it is mostly viewed by university educated or college audience. Most of the IMAX customers falls in the age range between 19 and 65, and IMAX’s current and future projects should fulfill desires of that group. IMAX Current strategy
IMAX is into vertical integration as it is into processing, distribution and exhibition of its own films. IMAX initially was focused on large format films that were educational yet entertaining and the theatres were located in institutions, museums, aquariums and national parks. IMAX forward integration...