Imax Case Study
Seminar: Issues in Management
Instructor: Dr. Yao
October 14, 2011
Abstract IMAX is in a dilemma as to whether it should be sold to other giants such as Sony, Disney or Time-Warner. The general environment of the movie industry is discussed. Porter’s five forces model is used to help identify the opportunities and threats for IMAX. An explanation of how the resources, capabilities, and core competencies support both business and corporate strategies follow the model. A reason for the company changing its business and corporate strategies and if it can survive as a niche player that only produces large …show more content…
In the article, the author does mention that people are spending more on entertainment than we are on anything else. To support this, he points out that “the average American spends 50% more on DVDs than they do on the movie tickets” (Silver & McDonnell, 2007, p. 9). One of the explanations for this was, because of the price of tickets and the cost at the concessions. Not to mention some of the noisy and rude people that sometimes be the theaters. These factors help drive people to stay home and enjoy their movies. IMAX does not seem to be impacted by any economic factors. The audiences still seem enjoy movies that are in the price range of $10-13 per ticket, after a study was done. “AMC, Cinemark and Regal all bought IMAX systems to have installed in their theaters” (Nair, 2009, p.6). Unfortunately there was a problem later down the line. A lot of theater owners filed for bankruptcy and IMAX took a big hit. IMAX dealt with the issue at hand and took in partnership agreements.
The case talks about how showing the IMAX movie Volcanoes of the Deep Sea was not allowed because of the protest of religious groups. These religious groups “were offended by the position on, and depiction of, evolution” (Nair, 2009, p.9). There is an increase in the concern for violence, sex, and vulgar language in Hollywood films. Due to all of the educational entertainment that