IMAX: Larger than Life
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to like this
No Downloads

Views

Total Views
14,687
On Slideshare
14,681
From Embeds
6
Number of Embeds
1

Actions

Shares
Downloads
363
Comments
1
Likes
0

Embeds 6

http://www.casequiz.com 6

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1.
  • 2.
  • 3.
  • 4. Overview
    Background, Industry
    Central Issues
    PEST Analysis
    Porter’s 5 Forces
    SWOT Analysis
    VRIO Analysis
    TOWS Framework
    Our Evaluation
    Questions?
  • 5. Company Background
    Idea for IMAX originated in 1967
    First film premiere was in 1970 at the Fuji Pavilion in Osaka, Japan
    About 471 theatres in 45 different countries
    50% located in museums, aquariums, zoos, and other institutions
    By the end of 2007 there were approximately 226 films
  • 6. Film Industry
    Highly competitive industry
    Very few/limited large format film companies
    Theaters became very diluted in the 90’s
    Ticket sales influenced by economy and consumer wallets
  • 7. Industry Facts
    Movie Theater Attendance:
    1.47 Billion
    Average Ticket Price:
    $7.50
    Source: National Association of Theater Owners (NATO), www.natoonline.org; Bureau of Economic Analysis, www.bea.gov; and Bureau of Labor Statistics, www.bls.gov.
  • 8. Central Issues
    How does IMAX resolve its long-term debt issues from the 90’s theater industry crisis?
    Could IMAX thrive as a niche player that made large format films and systems?
    High Competition, High Substitution, Piracy
    Would increasing the number of Hollywood movies released in IMAX format save the firm or dilute the IMAX brand?
    Will IMAX lose its differentiation?
  • 9. PEST Analysis
    Political
    • Influential politicians and family promoted limiting violence, sex, and vulgar language
    Economic
    • Greatly affected by fluctuation of the economic status of consumers
    Social
    • Age of consumers
    • 10. Family
    Technology
    • Vastly changing in industry
    • 11. New film technologies (HD, 3D, Blu-ray, etc)
  • Porter’s 5 Forces
    Photographic Equipment and Supplies (SIC 3861)
    Motion Picture and Video Tape Production (SIC 7812)
    Motion Picture and Video Distribution (SIC 7822)
  • 12. Porter’s 5 Forces
    Photographic Equipment and Supplies (SIC 3861)
    Motion Picture and Video Tape Production (SIC 7812)
    Motion Picture and Video Distribution (SIC 7822)
  • 13. Competitive Rivalry
    Competition with Pixar/Dreamworks for animated, high quality kid’s films.
    Iwerks is the only rival for large format films, and they focus on ride simulations. IMAX has a strong competitive advantage in technology with their patents.
    Entrants into the film industry value chain are rare.
    Porter’s 5 Forces
    Photographic Equipment and Supplies (SIC 3861)
    Motion Picture and Video Tape Production (SIC 7812)
    Motion Picture and Video Distribution (SIC 7822)
  • 14. SWOT Analysis
  • 15. VRIO Framework
    Core Competency: Technology & Patents
    Sustained Competitive Advantage?Yes.
  • 16. TOWS Analysis
  • 17. Our Evaluation
    Why was IMAX changing its corporate and business strategies? Could IMAX thrive as a niche player that only made large format films and systems?
    Digitally-remastered conversion for Hollywood films
    Revenue-sharing partnerships with theater chains
    These strategic moves were made by IMAX to lower its long-term debt. IMAX has strong branding, film industry leverage, and a technological competitive advantage.
  • 18. Our Evaluation
    How would you evaluate the changes? Could increasing the number of Hollywood movies released in IMAX format dilute the IMAX brand?
     
    IMAX made the right strategic business decisions to overcome its debt problem and return to profitability. Increasing the number of Hollywood movies should not dilute the IMAX brand. Today the IMAX brand is more associated with 3D technology and large screen film.1
    1The claim mentioned in the case that the brand’s trustworthiness is tied to institutional settings (educational entertainment) was done in 2000.
  • 19. Questions?