IMAX is a widescreen move theater that creates images ten times larger than the standard size. It is apart of three different industries including photographic equipment, video and picture production and also video distribution. IMAX is in a very competitive and risky environment with rivalries such as Columbia Studios, Pixar, and Netflix. The business within this particular industry is risky since a film production needs a huge investment. Expansion is a big opportunity for IMAX, as it is expanding overseas, opening new theaters in international countries including China, Russia, Brazil and India (Vlessing). I think threats of new entrants are low because barriers are really high since the film industry requires high investment and huge expertise. Some challenges IMAX is going to face to survive in the film industry are dealing with the technological evolution and high quality DVD's, dealing with piracy of movies, and the change of taste of consumers. Dealing with a lot of competitors and threat of substitutes is also a challenge due to DVD releases and the Internet because it is cheaper.
IMAX's business strategies include expanding into multiplexes and malls, offering more movies by introducing Hollywood movies in IMAX format, and increasing revenue potential of commercial IMAX theaters by using their own IMAX DMR technology (EDGAR Online). The most recognized resource of IMAX is its sophisticated technology used to shoot and produce films in large format 3D screening. IMAX's capabilities are its good relationships with its suppliers and distributors, specifically with AMC and Regal Cinemas. This partnership helped them own about 400 theatres in 47 countries by screening IMAX films and converting existing screens to IMAX formats (IMAX). IMAX also became its own supplier by developing and manufacturing special cameras and projectors, which gave them control over assured quality and timely delivery.
