Business Strategy: IMAX: Business And Corporate Level Strategy

Business and Corporate Level Strategies IMAX has a very distinct and successful strategy for their business. It generally involves building revenue through gaining long-term theater system lease and maintenance agreements, film production and distribution, and theater operations. Providing value to the customer and allowing them to experience a movie production like nowhere else is essential within their business level strategy. Aspects of their business, such as rapid technological innovation and image management has allowed IMAX to sustain a competitive advantage using differentiated services and products, rather than by the lowest price. One of IMAX’s key competitive advantages within their strategy is their technology resource capability,

Within this strategy, providing a diversity of services is essential in sustaining their competitive advantage. IMAX may be smaller in comparison to its rivals, making it extremely hard to sustain a cost advantage, but with their ability to provide continuous improvements within their technology sector, consumers have become loyal to their brand. People will pay a premium price for premium entertainment, and that is what IMAX is all about. The company has spent about $12.6 million in research and development costs in the past three years, identifying how important continuous improvement plays in their overall corporate strategy. Maintaining long-term relationships with their vendors has allowed IMAX to develop the skills, knowledge and capabilities to design the critical elements involved in entertaining their consumers, ensuring that they always maintain their most important strategic strategy, which is

Americans have the highest per capita movie attendance in the world, with over 1.4 billion movie theater attendances in the United States in 2007, and this number is increasing exponentially every year. This identifies an extremely healthy market in the United States for the entertainment service sector. Furthermore, movies are now increasingly becoming a global industry as well, with 5000 films released worldwide in 2007. Motion picture production and distribution was part of the service sector of the economy, including firms such as Disney/Pixar, MGM, Regal Entertainment, Lions Gate and Carmike.
Social- Depending on the demographics of an area and the multiple social trends that make up a country’s population, management within the movie entertainment sector must always ensure that movies are not offensive to that group. Focus on religion, political beliefs, violence, sex and language are all factors that must be reviewed.
Technological- Technology innovation is essential within this market: 3D cameras and projection systems to produce realistic 3D images, digital audio that produces distortion-free sound, and digital cameras and projectors to minimize the need of costly film. Sustaining a competitive advantage within this market requires companies to invest large amounts of capital in research and