1. Analyze IMAX’s general and industry environments and identify the opportunities and challenges it faces.
Imax can be considered as a part of 3 different industries : photographic equipment, video and picture production and also video distribution If we had to consider only the video production and distribution, one may say that IMAX is evolving in a very competitive environment. In fact, the rivalry between competitors is really harsh, mainly because of the presence of big integrated actors such as Columbia studios, pixar etc : Moreover, the business within this particular industry is risky since a film production needs a huge investment, so the return on investment of a movie is rarely important
Threat of new entrants: I think that the barriers are really high, because the industry requires high investment, huge expertise and effort in term of R&D, so the threat of new entrants is pretty much low
Substitutes : Dvd release, internet can be serious subsititutes to the theater release Some figures may indicates that dvd purchasers are also frequent movies goers, because it cheaper for a family to dowload a movie and watch it at home rather than pay for every member a ticket, the internet may be a serious substitutes to consider
Bargaining power of buyer : Since IMAX had decided to open it’s own theater, the bargaining power is constraint. However, the price that the consumer is willing to pay will always have to be aligned with the competition Bargaining power of supplier : the bargaining power of supplier is low since IMAX is producing it’s own material (camera and films) to produce high quality and differiented videos
Challenges : dealing with the technological evolution and the development of internet and high quality records, dealing with the piracy risks, offering differiented products, survive in the industry which means not being acquired by a firm
2. Discuss IMAX’s business strategy and...