Question

.Analyze IMAX's general and industry enviroments and identify the opportunities and challenges it faces.

Answer 1

Answer :

IMAX has a strong name in the market for excellent movie watching experience for the audience.

SWOT Internal and External Analysis

Strengths

Partnerships

IMAX has partnered strongly with partners in the movie market. This has helped to create great value for the parties and accounts as one of the biggest strengths. There is need to ensure high-quality standards and maintain it.

Unique experience

IMAX is well known for its incredible ability to provide high-quality cinematic experience. It captivates the audience and the screens have a bigger impact on the audience.

Weaknesses

Conversion Constraints

There is limited availability of IMAX formatted movie files to the public.

High cost and maintenance

There is the high cost attached to installing and maintaining IMAX and it becomes important to choose whether it is worth investing in IMAX screen for regions it is expanding into.

Opportunities Movie producer partnerships.

There is the opportunity to partner with foreign movie producers and this will help to increase revenues. There is a huge potential for success with the existence of commercially produced IMAX films. IMAX theatre chains

There is an opportunity to create theatre chain and increase the production of IMAX screens. This will be useful to bring more predictability. Threats Large format screens.

The introduction of large format screens is one of the biggest threats. This could be the popular alternative to IMAX. North American market.

There is the decrease in North American box office sales as there is the increase in the popularity of watching home entertainment devices induced movies.Porter’s Analysis

Supplier PowerThere is a strong position for IMAX for supplier power as the assistance amount that is required from the supplier is minimal. There is a strong grasp acquired by IMAX on the operations and it is strong with regards to supplier power.Buyer power- Medium

The customer base of IMAX is large and it decreases buyer power. There is no cost for switching to an alternative in the case of a buyer which will increase the power of the buyer for influencing prices.The threat of Rivalry- Medium-High

There is a medium-high threat of rivalry for two reasons. There are several competitors that exist against IMAX and the competitors gain the foundation on offering the cinematic experience that is premium. The experience of IMAX is unique and it has proprietary technology and they are not at risk.

A threat of Substitution- High. There are several alternatives to IMAX and the threat of substitution is high. There are cheaper alternatives that may not be immersive but deliver the movie. DVD home entertainment and illegal movie practice have become prevalent.New Entry Threat- lowThere is a low threat of new entry. The technology utilized by IMAX and the competitors are high on capital and knowledge intensive.