2045 Words Dec 16th, 2011 9 Pages
1. Introduction
Harberber and Rieple (2008) define strategy as a set of intentional or inadvertent set of actions through which an organization develops the required set of resources, efficiently target valuable customers, meet financial targets and competes effectively. These strategic decisions drive the long-term direction of the organization, the scope of its activities, help gain advantage over competitors, and address changes in the business environment.
The case of IMAX begins in 1994 when business partners Gelfond and Wechsler decided to purchase the organisation from its original owners and take the company public. IMAX operates in a people oriented business, operating within the entertainment industry. Through the years the
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The largest threat however is the nature of competitive rivalry. Movie production studios are releasing more movies in 3D format, which could pose a threat to IMAX’s inhouse collection of large format 3D documentaries (Georgiades, 2010a). Its buyers are vertically integrating to build their own large format screens, and it is possible for them to start selling it to competitors (Pacher, 2009). The success rate of movies in the market also makes it increasingly difficult to turn a significant profit on every movie featured in IMAX screens.
However, the industry is experiencing growth. Though it is increasingly becoming mature in US/Canada, Worldwide box office revenue has increased steadily in recent years (as seen in figure 1). Growth was experienced in all regions of the world, especially Asia Pacific and Latin America (MPAA, 2009). According to Georgiades (2010), the recent growth of the movie industry has been driven by the introduction of new technology, particularly large format screens and 3D, through which viewers can have a new immersive movie experience.
Figure 1: Worldwide Box Office ($ Billion). Source: MPAA (2009)
Pachner (2009) stated that the movie industry was increasingly becoming matured and declining, as a number of cinema attendants would prefer to wait for DVD releases, however this has changed with 3D technology. The recent success of the movie Avatar is a testament to the increased demand for new technologies such as CGI and 3D (Firn and
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