Free Essays IMAX operated at three different industries, and it had done successful in some portion of its concern, while there were besides some failing for its development. This assignment is traveling to measure the current state of affairs of IMAX, including analyzing the nature and beginning of its competitory advantage, its sustainable competitory advantage, and future development.
Introduction Harberber and Rieple define strategy as a set of intentional or inadvertent set of actions through which an organization develops the required set of resources, efficiently target valuable customers, meet 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 when business partners Gelfond and Wechsler decided to purchase the organisation 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. 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 Haberber and Rieple 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 know how required to enter into the equipment distribution, production and distribution industry.
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Also, with respect to distribution channels, IMAX has been able to establish partnerships with cinemas globally Firn and Alpeyev, ; MarketWatch, to showcase its films.
In addition IMAX has either partly or fully owns e. David Keighley Productions companies specialising in the pre and post-production aspects of its business.
However, the proliferation of cheaper digital film production and 3D equipment technology may significantly reduce that threat in coming years. In relation to substitutes to IMAX, the analysis focuses on possible alternatives such as: MPAA reveals that in theme parks were observed to be the largest substitute threat to the movie industry.
With the advent of the recession and the volatile financial environment, customers are becoming increasingly sensitive to price changes. IMAX is not immune to this change. It would also increase their bargaining power if they intend to renegotiate their existing contracts on the basis that they can now provide competitive quality on their large format and in house 3D formats.
The largest threat however is the nature of competitive rivalry. Its buyers are vertically integrating to build their own large format screens, and it is possible for them to start selling it to competitors Pacher, The success rate of movies in the market also makes it increasingly difficult to turn a significant profit on every movie featured in IMAX screens.
However, the industry is experiencing growth. According to Georgiadesthe recent growth of the movie industry has been driven by the introduction of new technology, particularly large format screens and 3D, through which viewers can have a new immersive movie experience.
MPAA Pachner stated that the movie industry was increasingly becoming matured and declining, as a number of cinema attendants would prefer to wait for DVD releases, however this has changed with 3D technology.
The recent success of the movie Avatar is a testament to the increased demand for new technologies such as CGI and 3D Firn and Alpeyev, These are increasingly becoming evident in IMAX with reference to competitors, buyers and moviegoers.
Following the analysis of the business environment in which IMAX operates the following key factors for success have been identified:IMAX has its technology resource, brand image and organizational resource better than other film companies, which can conclude its core competence, therefore it is easy to get IMAX’ s competitive advantages from its core competence.
In today’s competitive environment it is important for companies to identify their fit in an industry and capitalise on its competitive advantages. IMAX’s current resources are strategically positioned to achieve the key industrial success factors.
IMAX has its engineering resource, trade name image and organisational resource better than other movie companies, which can reason its nucleus competency, therefore it is easy to acquire IMAX ‘ s competitory advantages from its nucleus competency. 1) What competitive advantages underline the success of IMAX?
Are these advantages sustainable? 2) What motivated IMAX to expand internationally into emerging economies such as the BRIC countries? IMAX has its technology tool, brand image and organizational reference much better than other film companies, which can conclude its main competence, therefore it is not hard to get IMAX' s competitive advantages from its central competence.
IMAX is relatively small when it comes to rival studios and theatres but in itself IMAX is the leader in the industry when it comes to producing image in large format. IMAX not only played its films in its own theatres but gives its films to other theatres so that they would further promote them. Essay: Imax Competitive Advantages 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. In today’s competitive environment it is important for companies to identify their fit in an industry and capitalise on its competitive advantages. IMAX’s current resources are strategically positioned to achieve the key industrial success factors.
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.