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IMAX CASE STUDY - Essay Example

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It provides a wonderful movie watching experience because of its strength in high end 3D and DMR technologies. It has 400 theatres operating in 48…
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Download file to see previous pages... Large screen formats are a relatively new concept and it offers a wide range of exciting opportunities. There are very few players in this segment and it is primarily dominated by IMAX which is in this business for a long time now.
PESTEL analysis is done to understand the current situation. It has been established from PESTEL Analysis that technology is the most crucial factor for large screen formats. US is a tech savvy nation and hence this was the first market which was targeted by this industry. IMAX has developed superior technology in due course of time which provides a competitive advantage to it.
With the growing popularity of movies like Avatar and Alice In Wonderland new players are lining up to take advantage of the opportunity. Vertical Integration is a prime charecterstic of this industry and IMAX’s biggest buyers Regal and APC are coming up with their own large screen formats.
Next the report tries to identify the internal factors which affect IMAX. IMAX’s strength and weakness is established in this part. It is followed by understanding the opportunities and threats that IMAX has.
Political: The Federal Communications Commission has plans to implement a National Broadband Plan ensuring internet for all (Hanchard, 2010).This would mean that pay per views would increase which might affect box office sales.
Economical: America has been through the worst financial crisis. However it is on a recovery path with things getting back to normal. The per capita income of US in 2009 was $39,138$ (Bureau of Business & Economic Research, n.d.).
US has the highest number of movie audience per capita of population which stands at 5.3 films each year. Out of this if people who didn’t watch atleast a movie in one year, then the figure goes to 8.6 films.
Legal: Piracy is a major problem in US. Motion Picture Association of America estimated an annual loss of more than $3 billion because of piracy. The ...Download file to see next pagesRead More
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