Essay: Imax Competitive Advantages

Topics: Film, Hollywood, Los Angeles, California, Theatre Pages: 2 (423 words) Published: May 16, 2012
IMAX: Competitive advantages support for Strategic Decisions IMAX’s core purpose as creating a unique movie-going experience. This purpose is preserved in the recommended strategy since it aims to bring large-format screens and enhanced visual and audio systems to multiplexes. Such an experience is certainly independent of the film being shown. However, in order to achieve the higher margins built into IMAXs business strategy, IMAX must concentrate on distribution of their own films rather than Hollywood movies. In addition to better margins, avoiding Hollywood films will reduce the concern of potential content regulation. Generally, there is less vulgarity and violence in IMAX films, and they offer a more educational perspective. Focusing on IMAX films exploits the growing demand for edutainment, and provides incentive to multiplex operators to install IMAX systems. The edutainment market may attract new customers, but the more powerful incentive is that theatres can add more value to the movie-going experience. This serves to drive attendance, and is a more sustainable way to generate revenues than raising ticket prices. The projection system supplies industry is very attractive, but the motion picture production industry is less appealing. The recommended strategy reduces the threat of substitutes by adding more value for theatre-goers at a much lower price than substitute activities. Supplier power is much lower for IMAX films, as big-budget actors and directors are not needed for production. IMAX’s trusted brand image and edutainment focus create a differentiated position that mitigates intense rivalry and threat of entry. Differentiation from competitors is lacking in the current strategy. Competitor advantages

1. For consumers
* show different types of films (documentary, Hollywood, scientific) * entertainment at the expense of unique technologies
* The long period of demonstrations, up to 2 years
* recognizable brand
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