IMAX CASE:
Why was IMAX changing its strategies?

After implementing their original strategy of providing large format educational film and locating the theaters in prestigious venues for 10 years. IMAX changed its strategies to push the company to achieve faster growth and higher margins. First, IMAX expanding their reach by going beyond its cloistered museum environments into multiplexes or converting existing multiplexes’ screens to IMAX format. Second, IMAX ensures its growth by launching Hollywood films in IMAX format, or even release simultaneously in traditional theaters and IMAX format. By using the two-pronged strategy, IMAX expands the core audience from children and families to frequent moviegoers and young people. And people are willing to pay extra $3 to $5 for IMAX movie.

Can IMAX thrive as a niche player or should it look to get acquired?

IMAX’s unique feature of providing large format film and its technology capability in providing 3D movies over the past 20 years had created the sustainable competitive advantage of IMAX in the movie market nowadays. Both external market situation and internal company competencies are beneficial to IMAX grow from a niche player to a market leader.

The most influential external factors is the development of new technologies makes home theater become more affordable, for example, high-definition DVD recording, blue-ray disc, big screen 3D TVs, home theater projection and sound system. But it only created a bigger threat to the tradition multiplexes theaters while posted a competitive advantage to IMAX. More and more people will shift to IMAX theaters when they look for some fascinating entertainment, because the facility of multiplex cinema can no longer satisfy their needs, but IMAX can still provide the unique experience that could not be replicated at home

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