IMAX is the system where high resolution cameras

Running Head: BUSINESS LEVEL STRATEGY: IMAX
Business Level Strategy: IMAX
Name of the Student:
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1BUSINESS LEVEL STRATEGY: IMAX
Introduction
IMAX is the system where high resolution cameras, theatres as well as film format and film
projection is considered as the key point with the tallest aspect ratio along with that steep seating
arrangements. It was founded by Graeme Ferguson, William c. Shaw along with Roman Kroitor
and Robert Kerr in the year 1967 and was named as Multiscreen Corporation Limited. In the year
1970, IMAX first time put their foot in Canada (Acland). IMAX change the experience of the
movie goer as the company increase the width of the projection, so the image width is greater than
the width of the film stock. IMAX introduced 4K 3D digital camera in the year 2011. In the year
2015, the company introduce 2D digital camera. Many Hollywood movies also being shot namely,
Avengers: Infinity War; Avengers: Endgame as well as Transformers: The Last Knight (Wood).
Therefore, the company adopted a business level strategy in such a way that they can capture a
great market share from the market.
Question 1: IMAX Current Strategy
IMAX possess a very unique strategy to capture the market. The company wants to capture
the global market, this is due to the advancement in the technology as well as change in the
customer needs and wants. As the company is wants to globalise, it has adopted an effective
strategy which can be establish with the help of the Porter’s Five Forces. This theory helped the
organisation to develop a strategy which will be helpful for the organisation to grow as well as to
earn large sum of money in the process (Barara, Morel and Guy).
As the company wants to expand in the global market, the company also need to focus on
the PESTLE model as well which is quite important for the organisation to grow in the
international market. The company have rightly analysed as well as identified the factors which are
there in the model. This help the organisation to become famous in the world wide level (López et
al.).

2BUSINESS LEVEL STRATEGY: IMAX
IMAX wants to provide a real life experience to the customers in their theatres which will
automatically help them to attract more number of customers. For this the company have to take an
immense amount of risks so that they can expand in the international market. The company have to
look in the multinational as well as in domestic strategy to attract more customers towards their
brands. For this the company need to go adopt the Porter’s Five Forces as well as PESTLE model
in their organisation and they have rightly implemented it in their business model (Zou, Xu and
Ye).
IMAX have also adopted the integration strategy and a unique feature that is their film
format are larger than the other film production which makes them unique in the market. The
format possess a ration which helps the organisation to produce a picture which is wider than the
standard ratio used by the other film producers. This help the organisation to provide better service
and movie experience to the customers. This also enhance the experience of the customers and
automatically help them to grow as well as expand in the international as well as in the domestic
market. The company mainly focuses on the movie experience of the customers which help them to
grow (Sepulchre, Fadel and Ptetrzak-David). The SWOT analysis are as follows:
Strength Weakness
 IMAX possess a unique aspect ratio.
 The customer movie experience are
given importance by the organisation.
 The company possess the integration
strategy which help the company where
they distribute, process as well as
exhibit their own pictures.
 IMAX gives importance to the socio-
cultural needs as well which is a strong
 The company only promotes their
movie in their own theatres.

3BUSINESS LEVEL STRATEGY: IMAX
aspect for the organisation.
Opportunity Threat
 There is a huge opportunity for the
organisation to grow in the market as
they produce different types of films
namely, 2D; 3D; 4K as well as 10K.
 There is a huge chance for the company
to attract customers towards their brand
as they possess the unique aspect ratio.
 There are potential competitors for the
IMAX in terms of camera as well as
theatres.
 The market is open to all so anyone can
enter the market and can give
competition to the company.
Question 2: Short and Long-term Risks
The company operate in the theatre market where there is a huge risks that need to be look
after by the organisation. This risks may be short term as well as may be long term in nature which
hampers the business of the organisation (Soldić et al.). The risks are mainly:
 There is a restriction, which prevails in the accessing to markets for both the theatres as
well as for the movie.
 The foreign laws and regulation might put some burden on the company. This may
hamper the business of the organisation in the long run (Kostetskaya).
 The fluctuation that takes place between the countries is also a risk factor for the
company to generate revenue in the process (Hosokawa and Matsumoto).
 Trade barrier; tariffs as well as licensing is as a risk factor for the organisation as this
might fluctuate or can be renewed on the yearly basis.
 As the company possess headquarter in one country and due to expansion they also
operate on the other country. Therefore, the company is totally dependent on the local

4BUSINESS LEVEL STRATEGY: IMAX
distribution channels of that country (Silverstein). The performance of the company is
totally dependent on the distribution effectiveness of the distribution channel of that
country.
 The company faced the problem in the market pricing as the economy of the country
may vary from the country to country. Therefore, the company face problem while
setting up the price that to be charged from the customers. This is a type of short term
risk which can be overcome by the organisation (Hosokawa and Matsumoto).
 IMAX faces political as well as economic along with the social instability in other
countries including the domestic country. This is quite risky for the organisation in
terms of generating the revenue from the market.
 The company can face inflation in the market as the economic condition of the country
may vary from time to time.
This are the risks that the IMAX faces while generating revenue in short term as well as in
long term basis. The company adopted an effective strategy to overcome the risks whether it is
short term or long term (Chatta et al.). The company maintain an effective communication system
both internally as well as externally, which help the organisation to grow as well as to operate even
if the risk arises. IMAX follows the integration strategy, which help them to grow in the market as
well as to generate revenue in the market (Chatta et al.). As the company provide importance to the
customer’s movie viewing experience and build their business strategy accordingly so that
customers can get maximum satisfaction from then organisation services, which automatically help
them to grow in the market.
Question 3: IMAX Strategy in Entering Market
As per the Porter’s Five Forces there are certain aspects which force the organisation to
expand in the market and adopt new ways to attract customers towards the brand or the company so

5BUSINESS LEVEL STRATEGY: IMAX
that they can earn huge amount of profit from the market. The five aspects are namely bargaining
power of the buyers; bargaining power of the consumers; rivalry along with that threats of new
entrance as well as threat to substitute (Mathooko and Ogutu). This are the five factors which also
force the IMAX to adopt an effective as well as efficient marketing strategy so that they can sustain
in the market as well as can expand in the same.
IMAX has adopted the franchising strategy where headquarter is located in one location
and the company branches are located all around the world. This help the organisation to grow as
well as to earn huge customer base. This is so as the company provide high quality movie viewing
experience to the customers. Franchising is usually adopted by the organisation to expand rapidly
in the global market (Mani, Wathne and Antia). In case of franchising the organisation needs to
keep in mind about the two factors namely, the business should be unique in nature and as IMAX
is concerned the company provides the customers with wide screen size which help them to provide
full satisfaction to the customers in terms of movie viewing experience. Secondly, the company
need to keep in mind about the brand recognition in the market and in case of IMAX, the
company possess a strong brand recognition all around the world for the screen size and quality
services that are provided to the customers. Lastly, the competition level increases as the company
is opening a franchisee in the world market. This will automatically help the organisation to grow
and expand in the world market.
IMAX follows the matrix organisational structure, as this is the combination of both
functional model as well as divisional model. This help the organisation to grow as well as expand
in the market. The company adopted this strategy as this increase the productivity of the
organisation and help them to grow in the market. It also provides autonomy to the employees to
some extent which is also a reason for the growth of the organisation (Schnetler, Steyn and van
Staden). This strategy helps the managers to solve the decision making problem of the organisation.

6BUSINESS LEVEL STRATEGY: IMAX
Therefore, this type of structure is quite effective in nature. IMAX adopted this strategy to expand
in the international market.
Question 4: Conclusion
It can be conclude that the IMAX possess an effective and quite efficient business structure
which helps the organisation to grow as well as to sustain in the international market along with the
domestic market. This help the organisation to become popular in the domestic as well as in the
international market.
The company can also adopt the flat organisational structure as well which will eliminate
the chances of red tapping along with the bureaucracy. This will also improve the direct
communication in the organisation as well help the organisation to grow in the market. This should
be look after by the organisation (Baglee, Jantunen and Sharma). This organisational structure cut
down the traditional form of top-down management system. Therefore, there is a huge chance for
the organisation to grow as well as to earn profit from the market. This system also improves the
performance of the employee in the organisation which help the organisation to achieve the target
that they are willing to achieve in the near future.
The company should possess some control over the administration of the company which
will automatically help organisation to grow as well as to sustain in the international market and
the domestic market. The company should also possess some control over the distribution process
and should distribute their movie tom the other movie theatres as well which will help them to
promote them in the other movie theatres as well. This will help the organisation to grow and earn
huge amount of money from the market. Along with this the company will become popular in the
market and recognition of the brand will increase in the process. This are the few recommendation
that the company should follow which will ultimately benefit them in the long run as well as help
them to overcome the risks that might arise in the near future and help them to sustain during the
crisis period.

7BUSINESS LEVEL STRATEGY: IMAX

8BUSINESS LEVEL STRATEGY: IMAX
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