1. Discuss IMAX’s business level strategy to date and proposed changes. (10 points)
Products differentiation
The large format movie system gives customers unique visual and audio movie watching experience that cannot be found in conventional movie theaters. IMAX is also differentiated by its library of films and locations. IMAX located itself in institutional environment and commercial multiplexes to target wider audiences include family, students, and tourists at different time during the day by screening its own movies and other studios’ movies. Speaking of the technologies, IMAX films printed on larger films, which require special designed camera, projector, and screen to display the IMAX features.
Cost leadership.
The company …show more content…

IMAX doesn’t rely on certain type of buyers. The buyer range is very wide, and from different demographic. They are not likely to be price sensitive because the majority IMAX audience with average household income of more than $70000. The product offered by IMAX is much differentiated, and buyers cannot get the same watching experience anywhere else. Overall, the buyers’ power is low.
Rivalry
The rivalry is low because IMAX was founded as the only company in the world that was involved in all aspects of large format films. IMAX doesn’t have direct competitor in this industry. Even though some of the moviegoer may choose the traditional theater instead of watching IMAX, most the IMAX audience are willing to pay extra $3 to $5 to experience the unique IMAX features and some of them already watched the same movie in the traditional theater before. Additionally, only IMAX movies have long lifespans in the theater circuit.
In conclusion, I think this industry is attractive.
c). Key opportunities and threats
Opportunities: Large format film industry is emerging industry, and this industry is driven by technological innovations, changes in demand, and customer needs. IMAX can utilize the first-movers advantages. IMAX has the technological leadership, and also obtains the patent protections that enhance their performance. IMAX has the opportunities to tie up the strategically valuable resources,