Imax case study for Strategic Management course - Essay Example

and Strength-Weaknesses-Opportunity-Threat models, this study will analyze the environmental factors that could affect IMAX’s performance in domestic and foreign markets. Using a crystal clear image which is almost ten times bigger than what a traditional 35mm movie theatre can offer, IMAX is known for its ability to offer exciting film formal around the world. With IMAX’s 3D screen using state-of-the-art 3 dimensional glasses combine with its 15,000 watt digital surround sound system, IMAX was easily able to capture the market.

As a sign of success, IMAX was able to generate a total of $59.12 million revenue from IMAX system sales of which $36.57 came from films and $16.58 million from theatre operations (p. 3). Despite the success of IMAX in terms of capturing a larger part of its target audiences by introducing the state-of-the-art technology in the U.S. market, the company had to face business challenges because of its past growth strategy. With the purpose of capturing a wider scope of audiences, expanding the business by entering in alliances with commercial movie theatre owners like AMC, Cinemark, and Regal was not a good idea.

Although IMAX was able to install the IMAX system in the multiplexes of AMC, Cinemark, and Regal was cheaper as compared to the case when IMAX would invest on building their own cinemas, the crisis that hit the theatre industry back in the late 1990s made the growth strategy of IMAX a failure (p. 6). As a result of financial difficulty on the part of the theatre owners, many were left out with no choice but to file bankruptcy. This left IMAX with a long list of financial debts. To enable IMAX to success in the global theatre industry, the company had to make a clear judgement and careful decision on how IMAX will be able to compete with its rivals without having the need to experience the same business failure that took place back in the 1990s.

Upon analyzing the IMAX’s general and industry environment specifically by