Imax´s Analysis

IMAX´S ANALYSIS To consider the attractiveness of IMAX´s industry it has been taken into account an analysis of the general and industry environment using Porter's 5 forces model. The implications of this analysis are as follows: Rivalry: Movie production is one of highly risky business. IMAX has already faced other studios such as Pixar/Disney in the production of family and children films. Onthe other hand, in the large format film, only Iwerks remains as a major rival to IMAX. Note that Iwerks has been awarded with two academy awards; thereby its rivalry cannot be underestimated. Additionally, is well known that companies are often to offer customers the best quality experience. Threat of entrants: IMAX has already been subjected to this strong force when new technologies introducedhigh definition cheaper camcorders and distribution channels such as satellite, internet and cable to enter the market. One example is Pixar, which came up with blockbuster award winning animated films through advanced technology. Yet, IMAX can take advantage of the fact that it has already established itself in all aspects of film industry value chain and fight for the protection of itscopyrights. Threat of substitutes: This might be quoted as moderate since, even if the customers can be easily choose to use another theater, however, IMAX´s unique experience seems to create loyal customers. Power of buyers: The concentration and size of the customers remain to be the most important factors to determine buyer power. IMAX has already experience in considering this low (for IMAX) force. Forexample when IMAX took into account the consumption in educational and entertainment products differentiated of others ones, or also when IMAX introduced its successful 3D system to be assured of the presence of real customers lying in appropriate age groups. As such, the viewers seem willing to pay extraprice for IMAX experience while they could opt for a cheaper option. Power of suppliers: Thisforce usually indicates the potential power of the buyers. IMAX seems to be able to have the suppliers do what they want, because of any other industry is ready to offer what IMAX offers today. IMAX´s unique and competitive character To analyze these features the coherence test has been used. According to this, the consideration about investing in IMAX is favorable at this point because thecoherence of IMAX seems demonstrated since it is aligned around the following aspects: Way to play: The staff seems to understand the way that the company creates value for customers. Fact favored no doubt by a relatively low number of employees and a very high share of personnel involved in R & D.

Capabilities system: It offers at least five capabilities so that the company can sustain its valueproposition, as they are: a. Diversification of revenue sources through three different industries, R & D and the introduction of the digital format which has allowed it to reduce operating costs in relation to the rest of the companies in the sector. IMAX´s marketing costs significantly lower than those of the film industry Dominance of large format film distribution rights Ability to developpartnerships to introduce technology, as for example performed with AMC and Regal Cinemas in multiplexes using its technology MPS. Development of patented digital re-mastering (DMR) technology DMR that allows it to convert traditional 35 mm films such as Harry Potter into the large screen format and even develop 3D versions of such movies.

b. c. d.

e.

Product and service fit: All products andservices leverage the same capabilities system. The main reason in my opinion is that IMAX has been able to create a unique Brand image that facilitates the adjustment of the products and services. Future of IMAX´s business IMAX has already faced in their development critical aspects that have allowed it to grow despite slightly losing its Brand identity to deal with different experiences to the...