Importance of Resources and Capabilities: IMAX Case Study

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IMAX Case Study

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The main aim of this assignment is to elaborate the importance of the resources and capabilities
in the organization for which IMAX case study will be considered. The core competencies of the
company will be highlighted under this assignment in order to develop good significance in the
context of the growth of the company. VRIO table will be considered by taking reference of
IMAX company in which the importance of value, capabilities, rarity and imitable will be
mentioned.
IMAX Corporation is the company of entertainment technology that has specialization in
technologies of motion pictures and large-format motion-pictures. The major aim of the
company is to go beyond its cloistered museum system to show Hollywood films in the format of
IMAX. Celfond and Wechsler was the owner of the company for $80 million in 1994. The
company was listed in NASDAQ exchange in 1994 and attained market capitalization of $196
million in the very first year. IMAX movies were being shown in approx 295 theatres in 40
countries in which around 60% theatre were in North America.
Resources and capabilities are referred as primary driver of sustainable competitive advantages
of the company. Resources are considered as the productive assets, skills and knowledge which
are captured by the organization in the form of tangible, intangible and human resources.
Capabilities are the ability of the firm to make effective use of resources. The discussion
regarding the resources of the company is mentioned below:
There are advantages for IMAX Company of location as around 50% of theatres elaborating
IMAX Movies which are located in prominent societies like institutions and museum and similar
ration is taken into consideration by the company in 3D technology. The library of IMAX
Movies has been increased by 226 in 2007. Along with location benefits, IMAX has taken

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benefits of adequate financial resources in order to support its business activities by long-term
theatre system maintenance agreement, theatre operations and film production and distribution
(Porter, 2008). However, IMAX has not well-known image in the industry but sales from various
activities supported its competitiveness capabilities that facilitated the company to survive in the
industry.
IMAX is recognized all over the US due to large formats and holding 46 patents and it has strong
R&D. Majorly; the feature of patented digital re-mastering technology of the company permitted
it to develop traditional 35mm to the huge range along with the development of 3D versions of
such movies. Furthermore, it has well-known locations such as Smithsonian Institution in
Washington that is why it had a unique brand image. The company had huge chances to expand
its business across nation especially, alliances and partnership with movie theatre chains such as
AMC and websites channels that permitted IMAX to screen its movies in multiplexes. In the
context of Human resource management, the company was quite enough to hire talented and
skilled employees to keep minimal expenses (Vogelmeier, et. al., 2017).
The term of capabilities refer to the ability of the company to deploy its resources in order to
provide high rated customer value. The capabilities of the company are categorized under the
principle functional areas.
Strategic innovation is considered as the capacity to develop the existing business model in order
to generate the value for customers and stakeholders within the business over the competition
(Ling, 2011). There are various executives in the business that consider innovation in the most
vital way in order to increase the pace of amendment in the global business environment. The
core capability of IMAX is a culture of innovation as it fixed out niche strategy by taking