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The purpose of this report is to research and illustrate the current state of IMAX”s marketing position. Conclusions from strategic analysis will be shown in tables, charts and diagrams with clear links to what is being represented. Important figures will be highlighted and quotations clearly referenced.
Strategic analysis IMAX benefit from the sales of major box office titles in addition to specialist AD films. Therefore IMAX has a competitive advantage over rivals as they can offer the same ivies but with enhanced features. AD films give IMAX a major advantage because rivals cannot offer this service. Value Chain IMAX is a manufacturing organization as goods and services are sold to customers. Value Is AAA to products tongue ten unman resources management Ana technological developments stage.
A considerable amount of revenue has been invested in the research and development of new technology. This allows IMAX to offer first class maintenance and after sales support. Marketing Strategy IMAX regularly invest revenue in R&D for new technology to implement into their yester – this indicates that they specialist in product development Industry Life Cycle The box office sales life cycle above shows that the market is continuing to grow. This is supported by the fact that sales are steadily increasing according to the MAMA.
Growing trends are emerging and consumers are enjoying viewing movies as a regular form of entertainment – contributing to the stable growth of the market Conclusion IMAX has done well to establish itself and identify its own niche in the market. The technology they possess makes them unique as it is not available anywhere else. IMAX has the power to influence other companies in the market because they are such a major player. Contents PESTLE Analysts 4 5 6 7 9 12 ‘IMAX Corporation is one of the world’s leading entertainment technology companies, specializing in immersed motion picture technologies.
The worldwide IMAX theatre network is among the most important and successful theatrical distribution platforms for major event Hollywood films around the globe, with IMAX theaters delivering the world’s best cinematic presentations using proprietary IMAX, IMAX AD, Ana IMAX DAM technology. ‘ Strategic analysis – Distinctiveness IMAX”S systems are unique in the fact that they utilities superior technology compared to conventional systems. The size of the display, enhanced resolution, larger projectors and superior audio are all factors which differentiate Imam’s systems with standard ones.
IMAX theaters are also designed to offer an unmatched experience by being laid out in a dome shape. As a result the viewing angles and acoustics have been vastly improved. Another obvious example of distinctiveness relating to IMAX”s services is the ability to re-master movies to be shown in AD. The only other establishments who benefit from his technology are the ones who have agreements with IMAX. These are usually for educational purposes such as science museums and aquariums. No other theatre who sells box office titles has this capability.
Strategic analysis – Competitive advantage Therefore IMAX has an advantage over rivals as they can offer the same movies but with enhanced systems and features. AD films give IMAX a major advantage because Competitiveness is maintained through investment in research and development. Technological progression is a result of the resources supplied by IMAX allowing them to have a huge influence on the macro environment. IMAX plays a major role in shaping the industry as the systems they build set new standards for rival firms. Added value is also given to products sold by IMAX such as maintenance care plans and extended warranties.
Specialist developed equipment also offers more durability which consumers rely on for extra value. ‘The outstanding reliability of IMAX systems (99. 8 per cent average each year over the last 10 years) reflects a number of factors, including continued education to the development of the technology on a custom- made rather than production-line basis. ‘ [3] Value chain analysis c] MAX Is a maturating organization as goods Ana services are solo to customers. Value is added to products through the human resources management and technological developments stage.
A considerable amount of revenue has been invested in the research and development of new technology. For instance, ‘5% of revenue and 50 employees were invested in R&D in 2007. $12. 6 million was spent in the past three years prior. ‘ [Case Study 1] IMAX offers extra value to firms who take out a lease on their systems by offering a ‘maintenance plan includes an extensive first year warranty, followed by a world-class preemptive service program which egging on the day the theatre is commissioned and extends throughout the life of the system. [l] By in sourcing research and development processes IMAX can add subtle value to the eventual systems – as the engineers and maintenance team will be as informed as the people who created the equipment. After sales service is a major player in the sale of Imam’s systems as companies depend on the reliability of the equipment they purchase. IMAX owns and runs many post production facilities around the globe. Digitally re-mastering films for high resolution and a sharper image offers consumers more viewing pleasure over standard films. Enhanced audio also gives the customer some value as it completes the experience.
Marketing Strategy Figure 1 (Appendix) was taken from IMAX”s 2009 financial report. It shows revenue from 2005 through to 2009 in thousands of US dollars. Markedly, Imam’s services have generated the most revenue over the past 5 years. These include production, post production, film library and distributions, sponsorships and clip licensing. The growth matrix is a useful tool in analyzing the marketing strategy of a company. The fact that IMAX continue to invest so much revenue in R&D for new technology to implement into their systems – indicates that they specialist in product development.
Industry Life Cycle – Sale of Systems and Services This illustration indicates that the market is deep into the maturity stage of the life cycle. I newer NAS Eden an ever Increasing need to outsource meal Ana production services – leading companies to enter the market to satisfy the demand. At this stage, though there has been an increase in rival firms over the last few years, companies are reliant on one another. Major players in the market have developed their own niche, therefore focusing on maximizing sales. For example, IMAX supplies systems to major motion picture companies at the risk of hindering their own box office sales.
However, IMAX knows that they have developed a specialized service and like rival firms, concentrate their efforts on maximizing revenue. It is very unlikely that anymore competitors will enter the market at this point. This is because defensive tactics will be employed by companies to make it difficult for any new business to establish themselves. For instance, exclusive distribution rights, trade agreements and patented technology will make it near impossible for a new entrant to break through. In addition many companies will be benefiting from economies of scale – putting further difficulty on new entrants. Box Office Sales regular form of entertainment – contributing to the stable growth of the market. The US Entertainment Industry Market Stats box office sales below support this claim. The international market grew from 2001 through to 2007 by $10 billion. This is reenacted In Increasing pronto Tort Tells. I nee motion plectrum Ministry Is quite unique in the fact that it is still growing, but displays signs of a fully matured market. For example, established companies focus on brand awareness with little diversification. Solid consumer bases have been built in order to stimulate repeat sales.
It is likely that the market will continue to grow for the foreseeable future. New movies and services are constantly being made available which in turn stimulates more growth from the market. I IMAX PESTLE Analysts I Elements I Negative implications/contingencies I Political are becoming more politically aware than ever I N/A IMAX must retain a neutral political stance people are voting and therefore supporting I maintaining good relations with all political parties. I I I Favorable implications I Consumers I before. More I specific political parties.
I I Economic 1’2007 saw increases in the average cost per film for I N/A I The current nature of IMAX allows for little MAMA member companies and their subsidiaries. I preparations in regards to economic downturns. And marketing costs for MAMA member companies I According to the MAMA 2007 Entertainment Industry the I I U. S. Grew 8% and 4%, respectively, while costs I increase in marketing costs and overheads was subsidiaries grew 60% and 44%, respectively. ‘ [RAPT] I I predicted to grow in the following years. IMAX must I I I both the I Negative line the I for
I take steps to decrease costs such as renegotiating Ideals with suppliers, increasing pricing and cutting I I I wastage. I Socio- cultural ADD ready TV’s have become significantly cheaper and I According to their 2009 financial report IMAX has seen I IMAX have previously had to change their marketing I I I increasingly fashionable in the past few la sharp increase in the lease of technology and sale Strategy as a years. Result of the ever increasing I Globally, broadcast companies such as SKY, ESP. and loaf newer systems boasting the latest specs. This could Competitiveness of the market and focus on offering I I
I Channel 4 have began to enter the market by either I be due to the fact that more and more firms are terrifyingly class services such as, post production I releasing AD channels or screening specially selected Tit enter the market. IMAX has sought to take advantage I facilities, distribution channels and sponsorship I I elevens in AD. Electronic specialists have also started loaf this by investing and improving their services. Ligaments. This sort AT Elaborations allows IM capable of rivaling I increase revenue streams. I I Technological Tit sell none cinema equipment Tit spread the risk and I IMAX”s own technology.
I Pioneering breakthroughs have been made in addition to AS a result of being at the forefront of innovative I Technology is expensive to develop and there is no I I Significant advancements of existing technology. I theatre equipment IMAX has made significant turnover Set price on how much needs to be spent researching I I From selling and leasing gear to companies. In a time I new systems. I Fresh consumer technology like HAD and Blue-Ray has internet and on demand services are sky I I where allowed consumers to get the maximum viewing experience I rocketing this has roved to be a critical revenue I I in the comfort of their own home. Avenue (which stood TTL Stream. ‘In 2007, 51% of total | $59. 12 million) came from IMAX system sales. ‘ [Case I I Illegal I study 1] AS the ever increasing parenting culture becomes more AS the majority of IMAX made movies are documentaries I N/A I prominent, people are calling for the already stringent land other educational videos the firm may not have to I I industry guidelines to get even tougher. IMAX may find I worry about the industry guidelines being reviewed. I having to remove certain titles from their I I themselves I portfolio in the future.
More links are being made with I I explicit movies and negative impacts on young adults. I I I Environmental I IMAX may have to be more aware of their corporate social I Companies who show themselves to be environmentally Elf IMAX does not factor in the changing consumers I I I responsibility in the future. Pressure on governments Delaware are often greeted by more sales. IMAX I attitudes to environmentally friendly products and I I may reduce carbon emissions may filter down to I benefit from implementing new green policies and I services they may lose box office sales.
However, the I I I organizations. Some consumers may go as far as I making changes in accordance. Sisal of systems to other businesses will likely be I I I boycotting firms that do not seem to make an effort. I I unaffected. Conclusion However, as the main source of revenue comes from the sale and leasing of equipment, IMAX is susceptible to changes in macro environment. For example, IMAX will find it hard to sell or lease any systems amid an economic crisis. This limitation has been identified in their 2009 financial report stating: ‘IMAX”s primary customers are commercial multiplex exhibitors.
Thus, IMAX is unable to predict if, or when, they or other exhibitors will purchase or lease IMAX theatre systems or enter into Joint revenue sharing arrangements with the company. If exhibitors choose to reduce their levels of expansion or decide not to lease/purchase systems IMAX”s future revenues could be adversely affected. ‘ [RAPT] Investing in R&D, IMAX has the opportunity to produce new technology which will allow them to re-establish themselves at the forefront of the industry. As the market is continually growing more turnover can be generated if IMAX adapt adequately to changes in the macro environment.
For instance, the growing trend of people regularly attending the cinema for entertainment. IMAX will also benefit from considering to entering new markets such as events and audio visual solutions.