The IMAX in 1990-2007 Case Study

Essay by LeannaSitUniversity, Master'sB-, May 2010

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IMAX is the film format and projection standards created by IMAX Corporation. This essay provides an insight into the status quo of IMAX, and engages in 3 questions.

Before deep analysis, there are two primary question needs to be solved. First one is which strategy level is based within the essay. It can be seen that, the case is more focus on the corporate level strategy. The evidence is that the case has talked about diversification (from educational movies to Hollywood movies) and producing new products for new markets (from museum to multiplexes) which are important corporate level strategy. The second question is which view, Resourced-based View or Positioning School View, should be applied to analysis competitive advantages. In this essay, core competence (corporate level) is seen as the nature and source of competitive advantage (business level). We use Resource-based View to analysis competitive advantage in business level, and then pass the influences to core competence in corporate level.

The analysis is considerate on internal actions of IMAX and thinks little of external environment of IMAX. By using Resource-based view, it can make best use of the advantages and bypass the disadvantages.

First section of the essay describes the nature and source of IMAX's competitive advantages. It is strongly towards the core competence approach that addresses corporate level.

Second section of essay discusses to what extent the competitive advantages are sustainable. VRIO model is applied.

Third section is based on the two sections mentioned above, and offers a proposal to IMAX's further development.

1 The nature and source of IMAX's competitive advantage

IMAX is the film format and projection standard that created by IMAX Corporation, and it has the capability to record and display images of far greater size and resolution than conventional film systems. In recent years,