IMAX (Image Maximum): Case Study Analysis Essay

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The success of Image Maximum (IMAX) is determined by various competitive advantages. The first is innovation whereby IMAX increased their research and development and they later developed a more advanced laser projection system. That improved the screen reliability and enhanced the image quality from 2-D to 3-D (Case 2.3 IMAX: Understanding the International Context, 2016). The second competitive advantage is the business model that incorporated improvement of sound system through alteration of screen resolution and size. That was made possible through partnering with other movie studios and exhibitors such as Huayi Media Corporation Ltd based in China. The factors are sustainable since innovation has seen a major trend through digitization of equipment and expansion of globalization to enable more partnerships.

IMAX is motivated by the growing popularity which was strong in emerging markets. The reason is due to combination of DMR expansions and low capital cost to establish theatres that enabled the firm to grow in Brazil, Russia, China, and India (BRIC). To date, IMAX’s international expansion can be said to be broad due to longstanding business partnerships that has led to 17 new theatres as of 2021 (Case 2.3 IMAX: Understanding the International Context, 2016). Among the remaining screens, I would distribute them to Brazil first, followed by Russia, China and lastly India. The reason is due to the income and the population factor. The preferred cities for that matter are Sao Paulo, Moscow, Shanghai and Delhi since they have high population and individuals earning significant amount of income.

The possible risk in BRIC countries include regulatory quality in business and political tensions. The reason if there is poor control of resources in a given country, so does the ability to make business moves. If the host countries have internal conflicts, the market will be affected hence leading to loss in business (Case 2.3 IMAX: Understanding the International Context, 2016). IMAX must ascertain the risks by monitoring the monetary valuations and preventing the risk by establishing partnership that can control possible financial and political constraints.

Work Cited

2016. Case 2.3 IMAX: Understanding the International Context. [PDF] Ivey Publishing, pp.2-15. Web.

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