IMAX+-+Analysis+Methods+Notes+(Semhal)

Critical questions that IMAX is faced with currently:

- Would IMAX lose it’s differentiation if it exhibited too many Hollywood movies? ( losing it’s brand identitiy as being educational, as it moves into non-educational entertainment films). Brand erosion etc

- Should IMAX be sold to a larger studio such as Sony, Disney or Time-Warner? Is it too small to survive on it’s own? (“ripe for acquisition”)

Analysis Methods =

What is IMAX’s mission? Was educational services part of it’s initial strategy? Would these changes be incorporated into it’s new mission, or will it keep the same framework and just tweak it.

Objective: To grow by securing it’s position as a small firm that is competing with much larger firms, by utitlizing it’s “niche” advantages to the fullest. To tap into the overseas market more, as it’s a HUGE market, and grow with the market. Increased DVD usage/purchasing, more distribution rights? (high quality vs low quality objectives)

External analysis - Critical threats/opportunities. Questions: how has competition in this market evolved over recent years, what are the prospects? How will these effect the firms standing?

- threats: Piracy, new entrants into market (independent film makers), DVD purchases/DVR/Internet/Pay-per-view, competitors are larger firms, THREATS ARE ACTUALLY HIGH!!!!!  - opps: the 12-24 yr old market, integration with DVR distribution firms, IMAX experience at home?, overseas market, IMAX box office revenue’s rising dependant on the movie ( so perhaps more R&D into movies that are better suited on IMAX vs those that are not. Using the Matrix example, that movie goers went and saw it again on IMAX even tho 90% had already seen it. Implying that if it’s a movie that is worth seeing on IMAX, then they’ll watch it as such. A possible opp here could be maybe partnering with Pixar-Disney, because they make a huge array of movies that benefit from huge marketing (celeb voices etc..), but are also geared to the 12-24 market as well as younger, and some may fall under category of “edutainment”), page 7 (educational by day, entertainment by night concept), Internal analysis - Organizational strengths and weaknesses Questions: What can be changed internally increase advantages

strengths: the corporation has grown significantly in the over period of ‘04 to ‘07, it’s been able to cut operational costs so may be able to pass this on to the consumer?, the industry that it operates within, has seen attendance rise significantly and in 07 was the largest activity compared to theme parks, NBA, NFL, MLB etc...and the cheapest too, benefited from first mover advantages, rarity, large-format film was a unique feature of IMAX, (page 5 more advantages), hiring based on a project-to-project basis etc... Managed to developed skills and expertise to design and assemble critical elements, purchased main components from vendors with whom they maintained long term good relationships, Hollywood movies increased their releases of movies in IMAX format marketing was done by studios..cost savings, IMAX experience was exclusive and could not be replicated at home. -

weakness: small firm and dependant upon it’s suppliers/producers (those of critical components etc), so highly dependant on them ( seller power?), higher seller power, lack of capital to enable growth and to survive in a competitive market at a faster pace, high cost of R&D, high costs of printing, marketing & distribution of IMAX films, Debt due to alliances with commercial movie theater owners resulted in employee layoffs.