Environmental Analysis of Motion Picture Industry using 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.