I will pay for the following essay IMAX: Larger than life. Strategic Management. The essay is to be 8 pages with three to five sources, with in-text citations and a reference page.
Finally, recommendations would be provided based on studying the above-mentioned parameters for IMAX. About IMAX Brought in 1994 by Richard Gelfond and Bradley Wechsler, IMAX Corporation is a large film format production and distributing public company. As of Dec. 2008, the market capitalization value of IMAX was $125 million. Products and Services Offered: IMAX both products and services in the niche large film format industry. 1. IMAX produced photography equipments and technology for large film format such as IMAX films, IMAX projection system, 3D cameras and projectors and digital cameras. 2. Production of movies that were specific to the IMAX large film format such as documentaries of natural and science wonders, conversion of Hollywood movies to IMAX format. 3. Distribution and Ownership rights of IMAX produced films in theatres. The products and services offered by IMAX are highly different than others due to its state-of-art technologies used in producing large film format that provides bigger screens and a better 3D experience. Markets Served: Initially, IMAX products were focused primarily on educational and adventure institutional markets such as museums, aquariums, theme parks etc. Since late 1990s, IMAX has been expanding to more mainstream entertainment markets showing Hollywood or 3D large film format entertainment movies. What makes these markets attractive is high spending power, disposable income, high interest in 3D (school children) and education based entertainment (parents) and high customer loyalties (ability to pay a premium price for a good visual experience). A surge in 3D screens has dramatically boosted the market shares for 3D titles in major European markets like the U.K. (where 3D pictures took 24% of the total B.O.) and Russia (20% of the total B.O.), France (16% of admissions) and Germany (17% of admissions) (Meza 2011). Primary Customers: IMAX key customers were young children and adults within the age groups of 12-24 years and 25-39 years old. Most of the customers came from an affluent background hence could afford the premium pricing of IMAX. Challenges for IMAX: There were a number of challenges that the management of IMAX faced going forward: 1. Reduction of gross margins by 12% from 2004 to 2007 indicating management inefficiencies and high operating costs (Forbes 2008). 2. Consistently declining sales and decrease in market cap value indicating losing revenues and lack of trust by investors. 3. High amounts of debt due to heavy asset nature of the business. 4. Niche market leading to limited audience and lower scope of growth than mainstream films such as Hollywood. Going forward the strategy for IMAX is to expand beyond its institutional environment and open IMAX theatres within multiplexes and to launch Hollywood films in IMAX format. Industry Map (Film Industry Value Chain) In order to fully understand IMAX’s strategy and recommendations for growth, we would the overall Industry map and value chain. The above diagram shows a simple version of the Film industry value chain.
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