Environmental Analysis of Motion Picture Industry using PESTLE Analysis

This report provides an analysis of the key findings about the environmental condition of the business. It includes all the factors which may have a drastic impact on the business operations that require more potential strategies. The report has identified key opportunities and threats of the company through pestle analysis.

Strategic analysts

INTRODUCTION
The test provides an analysis of the key finding about the environmental condition of the
business. A company is surrounded with many factor which impact on their strategic growth,
positions and profitability (Song and Fergnani, 2022). Therefore, it is necessary to identify all the
major causes which may create barriers in achieving desired objectives of the business.
Therefore, it shows that in order to promote great outcome from the business, there should be
appropriate knowledge about the current dynamic environment.
MAIN BODY
TASK
Employing PEST analysis, conduct an environmental analysis of the motion picture industry.
Identify the main opportunities and threats
Environmental analysis is a necessary area which should be conducted in an appropriate
manner. This analysis will help in identifying the current position of the industry and the
company in the market. it includes all the factors which may have drastic impact on the business
operations that require more potential strategies. A business is mainly covered with large areas as
it represents the whole industry which includes government, society, economy and environment
as well. The present environmental analysis is based on IMAX company which covers a whole
motion picture industry (Naghedi, Moghaddam and Piadeh, 2020). The company has high
resolution of film cameras, projector, theatres and other spaces for showcasing films and
cinematic pictures. This industry has covered a large area in the market. People are engaging in
entertainment and motion which becomes a part of their life routine. The Motion industry have
covered all the types of production such as horror, adventure, comedy, drama, romance and other
documentaries. This shows that, there is requirement of the key environmental analysis which is
faced by motion industry. The IMAX has their specialisation that they provide films in larger
format which is a distinct feature of the company. Also, the company is unique due to having
library of films and locations which has impacted on the brand name in positive manner. This
industry is known for great revenues, collaborations, partnership and much less competition that
the other sectors. Production films, projector and large space for entertainment require great
investment, infrastructure and other key resources which are not easily imitable. Apart from this,
not only infrastructure require huge cost in this industry but promotion is also a huge expense.

Motion industry is committed to give full-fledged entertainment with great shorts, lighting and a
comfortable environment like theatres where people could enjoy with their close ones. IMAX
has ascertained growth in both Hollywood and multiplexes by launching its films in larger
formats. Mainly these theatres are located at museums, aquariums and reached to larger audience
they shifted to multiplexes through collaborating with other theatre owners. For that instance, a
detailed environmental analysis of the company is requiring to analyse the overall position of the
business. This will be done through applying PESTLE analysis which is described below:
Pestle analysis: This analysis mainly done for knowing about the macro environment
factors of a business (Grantham, 2022). They have direct and indirect impact on the operations
and management of the organisation. This shows that, there is requirement of creating better
strategies to analyse its positive and negative impact on IMAX company.
Political: As per this factor, the organisation is required to fulfil the growth and
development of the key potential factors like political interferences, trade regulation, taxes and
terrorism. All these factors have a great impact on motion picture industry as political interferes
may stop the release of the film. In Canada, there is much political stability for the motion
picture industry as environment is free from biases. The IMAX company has positive impact of
the regulatory practices though which, the business could easily operate in the country. They find
ease of doing business. The company also has negative impact of the change in policy and new
government which make fluctuations which impact on the profits and revenues of the company.
Environmental: The environment is considered as the most important factors for the
business to achieve desired growth. This factor includes pollution activities, sustainability, eco-
friendly production, carbon emission, wildlife control. The business should not harm the
environment and the resources for their own sake. The more they will care for the environment,
the more it creates a positive image in the market. the motion picture industry of US has much
concerned about the environmental practices as it produces waste, carbons and use of materials
such as plastic, non-degradable substances (Wherry, 2021). The IMAX company has its positive
impact of this factor as they are using renewable technology. The US government provides
support and subsidies to promote use of renewable technology. The company is also making
their flexible supply chains due to weather conditions in Canada. It will sum up all the protective
measures for environmental control.

Social: This factor is all about society, their trends, culture, values and beliefs. A business is
working for fulfilling the needs of the people which ensure great profitability and growth in the
market. these factors mainly are culture, trends, people wants and beliefs about a particular
product or service (Shivangi, Dorairaj, Negi, and Shetty, 2021). In motion industry, people
interest, culture and hobbies matters a lot for the theatres to showcase films which will attract
audience. In united states, people gives preference to the modern preferences which includes new
innovations and experiments rather than traditional ones. IMAX has positive impact as they
promote a unique media concept in educational as well as entertainment sector. The company
has much leverage to use social media platforms to better serve their products and services.
Technological: this factor is all about giving technological preferences in the business. The
organisation is requiring to adopt advancement in their technology to meet with the expectations
of the society and its demands. United states are a well-developed country in terms of
technological advancement. They promote great innovations and use of high quality machineries
for creating a distinct name in the market. therefore, the motion industry of the US has multiple
advantages of this factor due to having low cost of production, employment right and tough rule
for patent protection (Weaver, ’Hagan, and Lamprou, 2022). The company has much potential to
generate high tech facilities by refurnishing their supply chains. IMAX has positive impact due
to having strict rule regarding technological and patent right protection in US.
Economical: This shows that; the economy plays a vital role in the development of country
and the business. This factor involves inflation, demand and supply, interest rates and
employment opportunity in the country. Therefore, the motion picture industry has vital
importance in the GDP of US as it contributes huge employment opportunities, money flow and
technological integration (Vasudevan, 2018). The IMAX has positive impact of this factor due to
involving innovations by fulfilling customers’ needs. They engage large audience which give
rise to demand and supply of the services. Due to stable position of the US for next 5 to 10 years,
the company has opportunity to contribute in the economy.
Legal: As per this factor, the business is obliged to abide by all the legal interferences in
terms of government restriction, profits and Acts. The motion picture industry has much
influence from the government and laws as it consists diversified business areas. The US has
strict laws regarding equality and diversity, health and safety, discrimination and employment

acts. Therefore, the IMAX is concerning with all the acts and laws towards the employees,
people, stakeholders and customers (Roman, 2021). This shows that, the company has positive
impact of this factor due to having rules and standards maintain about all these laws.
Some of the important opportunities and threats identified from the pest analysis are mentioned
below:
Opportunities:
 The IMAX could use renewable technology for undertaking growth in international
market. As the natural resources are reducing day by day so in order to protect it the
company can make use of renewable technology. The renewable technology reefers to
making use of natural technology with the help of natural resources.
 As the use of technology is growing rapidly so in order to grab attention and customer
base they can use social media and digital platforms to promote their services. Along
with this, it's possible to monitor the real time activity of the customers. With this a lot of
traffic is being generated with the help of digital tools.
 With making continuous innovation the company will be able to grab the attention of
customers. The company could take advantage of good financial stability for over the
next period to bring regular innovation. So the company should keeps on making
continuous innovation and improvement.
Threats:
 The company is threating through the cause of Coid-19 and Ukraine war. Due to arise in
Covid -19 pandemic all the theatres were closed for a longer duration of time. With
results in reducing revenue and profit of the company continuously. With this the
company was able to overcome from it slowly and hence the war take place. This all
affected the purchasing power of the customers and they are not able to afford to services
offered by the company. Along with this the rate of inflation rises and it's not possible to
waste money on unnecessary things for the customers.
 Also. New government and policies is also a threat which bring new roles and
regulations. The government keeps on increasing the tax rate, so the company has to
charge high prices for any product or services. This make the customers feel dissatisfied.

 The most important threat which the company has to face is due to rapid increase in the
demand of OTT platforms. Due the covid – 19 pandemic it's not possible for customers to
went outside so this developed the habit of watching this over OTT platform. With this
they are cost effective and the customers can watch it as per their convenience. This is
how the customers are making shift towards OTT platforms. With this, now the taste and
preference of customers has changes be use to prefer watching Web series over movies.
This results in decreasing the demand for company.
CONCLUSION
The report has concluded that environmental analysis is necessary for the business to
promote long term growth and existence. This shows that, it is vital for the roles and
responsibilities of a company towards sustainability, society and economy. Therefore, the report
has identified key opportunities and threats of the company through pestle analysis. It assures
that, there is requirement of taking potential for the financial performance of the company. It is
also analysed that OTT platforms are seems to be growing more rapidly which may take place of
the theatre industry. Along with this it's cost saving and continent which is encouraging
customers to make use of it instead of preferring theatres.

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