The Imax Corporation Is A Canadian Company Marketing Essay


The IMAX Corporation is a Canadian company. It is the interior decorator and maker of IMAX cameras and projectors, and its major concern besides including managing movie production and distribution to the assorted IMAX affiliated theaters worldwide. This essay aims at analysis the house ‘s competitory advantages base on the instance of IMAX Corporation, and so give some recommendations about the company ‘s farther development.

Before the in-depth analysis, we need to calculate out which degree of scheme to follow and what sort of position to utilize harmonizing to the former reply. There are two degree schemes which are often used, corporate-level and business-level. Conceptually, it seems that corporate-level scheme and business-level scheme are matching, but they focus on between-business and within-business fluctuations in houses ‘ schemes, severally ( Beard, Dess, 1981 ) . From the instance, clearly evidences show that the IMAX Corporation is running several concerns including rental and care understanding of IMAX system, green goods and distribute movies, and operate theaters. Therefore our analysis has to give the built-in image of the house alternatively of focal point on one individual point of concern. This is why corporate-level scheme is chosen. For the corporate-level scheme, the Resource-Based View and the Positioning School are frequently applied. The RBV emphasiss on the internal capacities of the company to accomplish its competitory advantage in a certain industry, while the Positioning School wage more attending to the external orientated and market driven ( Genus, 1998 ) . In this instance, we need to turn to the nature and beginning of competitory advantage which related to the internal of the house. And the engineering the IMAX Corporation owns can be regarded as particular beginnings. On the other manus, there are some groundss depict how IMAX different from others, but seems non plenty for analysis. Therefore, the RBV should be used to analysis the instance.

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This essay is made up by three chief parts. The first subdivision assesses the nature and beginning of IMAX ‘s competitory advantage. In subdivision two, these competitory advantages are analyzed and evaluated to see if they are sustainable. The last portion will propose for the hereafter development of IMAX based on the former two parts.

1 The beginning of IMAX ‘s competitory advantage

Amit and Schoemaker ( 1993 ) defined all the assets, capablenesss, procedures and cognition that reside in the house as a house ‘s resources or competences. Harmonizing to the instance, these resources or competences can be found on IMAX. These resources must run into the undermentioned conditions in the resource and competency based position:

1. The competency is hard to copy ;

2. Ownership is different among the houses ;

3. Supply chances for the house.

As there is some convergence of procedures, cognition and assets, the undermentioned portion will emphasis on assets and capablenesss of IMAX.

1.1 Technology

IMAX is both the name of a house and the name of a watercourse of particular engineering or system. The IMAX Corporation spends a batch on research and development. The company has the ability to plan and piece the cardinal parts of the projector and camera system. This watercourse of engineering has 46 patens and 7 patents pending in US, it has won the Oscar Award for Scientific and Technical Achievement. There are many impressive characteristics about this watercourse of engineering.

1.1.1 Larger image makes unreplaceable experience

The screens of IMAX theaters are much larger than ordinary 1s, the 88 pess high and 120 pess broad screen can do the spectator wholly immersed in the scene. As the IMAX movie are 10 times larger than 35mm movies, the images ‘ declaration ratio are even higher than the traditional 1s. When combined the professional sound system, the image particularly the 3-D 1s will do the audiences feel as if they are portion of the onscreen action. This experience is more intense and exciting than other manner of watching film such as traditional multiplexes or place Television. Obviously it is an of import ground why research shows that a batch of people are willing to pay the excess $ 3 to $ 5 for IMAX movies, and why a high per centum of people watch IMAX format movie even they had seen the ordinary one before.

1.1.2 Low-cost transition costs for traditional theaters

IMAX Corporation was built on the foundation of bring forthing and administering the IMAX docudramas. After the house found that the commercial market has a elephantine potency to spread out nucleus audiences, they decide to spread out its concern range. In recent old ages IMAX started partnership with some theaters companies and supplied them with its MPX engineering which allows change the traditional theaters into IMAX format with low cost. The transition cost including retrofit the multiplex and fit the IMAX system was estimated less than $ 700,000, while Hollywood studios might pay a major film star more than $ 10million for one film. The newer understandings of IMAX require the theater spouse itself invest for the IMAX system in its ain theaters besides shows that the cost are acceptable. Therefore the IMAX system, unlike Cinerama, offers theatres the opportunity to put an low-cost amount of money to follow the great system which guarantees WOW impact.

1.1.3 Cheap produce/ convert and distribution cost of movies

Harmonizing to the information from the instance, with the new visible radiation cameras developed by IMAX, the cost of green goods a 2D movie is $ 5million, which is the half for doing a 3D IMAX movie. Meanwhile with the aid of the patented engineering named re-mastering ( DMR ) to reassign the traditional 35mm 2D and 3D movie into IMAX format merely cost $ 22,500 and $ 45,000 for each print, severally. When other companies are firing 1000000s of dollars to do one individual film, IMAX can bask its cost advantage while bring forthing, and “ sit on the cost-tails of selling runs launched by the studios ” ( Nair, 2009 ) for films convert from other studios ‘ merchandises.

In add-on, IMAX Corporation has besides developed the digital cameras and projectors, anticipating to cut the operational costs significantly.

1.2 Goodwill and the IMAX trade name

IMAX has differentiated itself by bring forthing a big amount of educational and entertaining movies such as docudramas and so on. What is more, IMAX has besides created a alone trade name image by turn uping itself in esteemed scenes such as museum, fish tank and so on. All these above spring people an feeling of IMAX movies as high-quality non merely in the impressive ocular consequence, but besides in the image and the content. This helps the house to cut down the production cost by salvaging the money of invite film star, but at the same clip, maintain pulling people to watch its movies.

Furthermore, confederations ‘ aid with cross-promoting IMAX ‘s films and the long-run relationships between both the constituents providers and theaters are besides marks of good will of IMAX.

1.3 Servicess

Since IMAX Corporation is able to plan and put in IMAX system for its theater clients, it can offers its clients an incorporate planning for the theater to construct or change over into IMAX format including sound system provided by IMAX ‘s ain subordinate Sonics Associates Inc. Besides, the staff of the company visited each theater for serving the systems, service projection system by the one-fourth and serve the sound system annually. These services make the directors of the theaters more assurance in following IMAX.

1.4 Capacities

“ Capacities represent the house ‘s capacity or ability to incorporate single house resources to accomplish a coveted aim ” ( SMOC talk notes, 2009 ) . Since IMAX Corporation is involved in most parts of the industry from the green goods and distribute of the movie to plan, hole and keep the undertaking system. The Cross-linked cyberspace of activities in the Value Chain in Appendix 1 makes up the company ‘s capablenesss to roll up all its separate resources to do the organisation ‘s end achieved chiefly based on its engineering advantages, while the service and trade name repute advantage besides contribute to house ‘s public presentation.

2 Is the beginning of IMAX ‘s competitory advantage sustainable?

The RBV theory indicates that by acquire the abilities that are rare and hard for other houses to retroflex, the house is able to accumulate and maintain sustained competitory advantage. Coates and McDermott ( 2001 ) claimed that “ competency in the resource based perspective represents a combination of cognition, accomplishments, and engineerings which provide chances for the house and are hard for rivals to double. ”

Harmonizing to Peteraf, four basiss contribute to competitory advantage, which are Resource heterogeneousness, Ex station bounds to competition, Ex Ante limits to competition and Imperfect ( resource ) mobility. All the four conditions should be met in order to maintain competitory advantage. Appendix 4 indicates that IMAX Corporation meets all of these conditions because of its engineering support, alone trade name image and broad scope of operations involved in the film industry. Therefore, the beginning of the house ‘s competitory advantage has the ascription of sustainable.

2.1 The VIRO analysis

Appendix 2 lists whether or the competitory advantages of IMAX mentioned in the corporate-level of position are sustainable. It is clear that most of these advantages are sustainable, as the nucleus competency of IMAX critically underpins them. The fast changing external conditions, nevertheless, makes some of these competitory advantages non work persistently. In the film industry, there are a batch of companies who had established their ain trade name images, most of these trade name images can both cut the cost of doing movie while still pulling people to watch. So IMAX needs to develop more advanced engineerings to vie in new environment.

When we consider the “ I ” portion of the VIRO theoretical account which represents the extent of the trouble to copy, we can establish that the conditions are non so great. To be specific, there are other companies such as Iwerks who can besides supply big format films which mean if they decide to travel from Parks, menagerie or museums to multiplexes, IMAX will confront menaces raise by them. Furthermore, companies like Pollavision besides have the ability to give suggestions about big format movie theaters. Last but non least, since there are so many types of movies produced every twelvemonth, a movie company can easy take to bring forth or administer the precisely one or two types of films merely like what IMAX had done for several old ages to separate itself from others. In malice of those failings, the competitory advantages based on proficient capacities are about rare and hard to copy because of the company ‘s immense investing on R & A ; D twelvemonth by twelvemonth and all the proficient informations or see it already got. While things like patent and informations or skill critical for its operation can be still kept for decennaries by IMAX Corporation, it seems sustainable from this point of position.

However, you can non better your proficient capacity merely by seting postings on the wall of the applied scientist ‘s office or merely compose it down on the vision or study of the company. What research and development required is knowledge, skilled endowments and money. As the IMAX Corporation has so many patents and experience on bring forthing IMAX format movies or put in and keep the IMAX format system in theaters, they have got adequate cognition. From the instance we can non happen adequate information about the human resource status of the house, since house hired the endowment for the movie on a project-by-project footing. Therefore we can see that the house is able to engage the people it wants. But the fiscal support to the R & A ; D is now a large job to IMAX. Harmonizing to the corporate fiscal studies provided by the instance, the IMAX Corporation spends a batch of money on research and development, but as the net income of the company is negative since 2006. It seems that the company can non afford to go on pay so much money on engineering development. While some of the other companies making the same concern were merged into larger studios, they can acquire much more research fund and support, therefore weaken the positive consequence of IMAX ‘s proficient advantage.

2.2 LSP analysis

The LSP model is mostly adopted from Sirmon et Al. ‘s theory of resource direction and Teece et Al. ‘s ( 1997 ) construct of dynamic capableness ( Wong, Karia, 2008 ) . The theoretical model comprises of procedures necessary for a LSP to accomplish competitory advantages. The cardinal phases are illustrated in Appendix 3. From the LSP analysis and combine with the consequences above, it is clear that the IMAX Corporation has its ain bing portfolio of resource chiefly based on engineering. The entree to such resources is obvious. Together with the house ‘s capacities of integrate single resources, these resources can derive competitory advantage and make new capacities for the company. This LSP circle inside the company can assist maintain the house obtain competitory advantage in long-run.

3 Recommendations for IMAX ‘s hereafter development

Based on the Resource Based View, the IMAX Corporation has some failings in its concern operation. The company is challenged by internal and external issues. Several recommendations will be made in order to assist the house to research its bing nucleus competency to get new competitory advantages for its hereafter development.

The writer raised two inquiries which the IMAX Corporation is confronting.

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